What is considered an exempt employee?

An exempt employee is a worker who is not eligible to receive overtime pay in Maryland. Exempt employees are generally classified as independent contractors, or salaried employees who meet certain criteria set by the federal and state governments. Most exempt employees are categorized as executive, administrative, or professional employees. These include executives, administrators, professionals, certain computer professionals, outside salespeople, and certain hospitality industry workers. To be considered an exempt employee, these employees must be paid on a salary basis, and their work must involve tasks that are mainly executive, administrative, or professional in nature. In addition to being paid on a salary basis, an exempt employee must also typically receive wages that are at least twice the state minimum wage. The wages must also be paid according to an established pay schedule, either on a weekly, biweekly, or monthly basis. Finally, exempt employees are expected to work a certain number of hours in a calendar week, and are typically not entitled to overtime pay. In Maryland, the minimum salary for an exempt employee is currently $684 per week, or $35,568 annually. Exempt employees are not eligible for overtime pay, as well as other benefits that are reserved for non-exempt workers.

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