What is the difference between exempt and nonexempt employees?

Exempt and nonexempt employees are two categories of employees that are treated differently under federal and California wage and hour law. Exempt employees are not subject to certain labor laws concerning overtime pay, minimum wage, and meal breaks, while nonexempt employees do have these laws applied to them. In short, exempt employees are generally paid a salary, whereas nonexempt employees are paid an hourly wage or on a commission basis. Exempt employees also generally have a greater amount of autonomy in the workplace and are in positions of greater responsibility than nonexempt employees. Under the Fair Labor Standards Act (FLSA), an exempt employee is one who meets certain criteria, such as being paid a set salary of at least $455 a week, performing work that is considered executive, professional, or administrative in nature, and having certain job duties. Examples of exempt employees include executive officers, administrative professionals, outside sales professionals, and certain professionals like lawyers, doctors, and teachers. Nonexempt employees, on the other hand, do not meet the criteria of an exempt employee as outlined by the FLSA. They are typically paid hourly wages or commissions, and are not subject to the same labor laws as exempt employees. Examples of nonexempt employees include restaurant staff, janitors, cashiers, and retail workers. In summary, the key difference between exempt and nonexempt employees is that exempt employees are not subject to certain labor laws, while nonexempt employees have these laws applicable to them. Exempt employees are typically paid a salary, whereas nonexempt employees are paid an hourly wage or on a commission basis. Exempt employees also hold a higher level of responsibility and authority in the workplace.

What is the difference between exempt and nonexempt employees?

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