What is the difference between exempt and nonexempt employees?
In Arizona, the wage and hour law covers a variety of topics, including defining the differences between exempt and nonexempt employees. Exempt employees are those who are not subject to the overtime laws of the Fair Labor Standards Act (FLSA). These employees typically must have a certain level of education, experience, and/or job-related skills in order to qualify for exempt status. Exempt employees are generally paid a salary rather than hourly wages and may receive additional benefits, such as healthcare and retirement plans. Non-exempt employees, on the other hand, are covered by the FLSA and are eligible for overtime pay. These employees are typically paid an hourly wage and are not entitled to additional benefits. Non-exempt employees must be paid at least the federal or Arizona minimum wage for all hours worked, and must receive overtime pay of 1.5 times their regular hourly rate for all hours worked over 40 per week. In summary, the primary difference between exempt and nonexempt employees is that exempt employees are not covered by the overtime laws of the FLSA, while nonexempt employees are eligible for overtime pay. Exempt employees are usually paid a salary while nonexempt employees are generally paid an hourly wage. Additionally, exempt employees may receive additional benefits such as healthcare and retirement plans, while such benefits are not usually available to nonexempt employees.
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