What is the difference between exempt and nonexempt employees?

Exempt and nonexempt employees are two terms used to classify workers and their rights under wage and hour law in Louisiana. The main difference between the two is the eligibility of overtime pay. Exempt employees are not eligible for overtime pay, while nonexempt employees are. Exempt employees typically include administrative, executive, and professional employees, who are paid on a salary basis, rather than an hourly wage. They also have a certain level of authority to make decisions that affect the business and are generally paid higher than nonexempt employees. The main reason employers classify employees as exempt is to avoid the requirement to pay overtime wages for that employee. Nonexempt employees are traditionally hourly and may include production workers, maintenance workers, and office staff. They must receive at least the minimum wage and are typically eligible for overtime pay. They do not have the same authority and decision-making power as exempt employees. Employers in Louisiana must abide by the wage and hour laws to ensure that all employees are paid fairly according to their employment classification. To determine whether an employee is exempt or nonexempt, employers should consult a lawyer or review applicable state or federal laws to ensure all employees are properly compensated.

Related FAQs

Are employers required to provide a rest break and/or meal break?
What type of records must employers provide regarding wages earned?
Are employers allowed to set different work hours for different employees?
What type of records must employers provide to employees about wages and hours?
What is the difference between a salaried and an hourly employee?
How are bonuses calculated when employees are paid by the hour?
What workers are not entitled to overtime pay?
Are employers allowed to offer bonuses in lieu of wages?
What is the penalty for not paying employees the minimum wage?
What is considered an exempt employee?

What is the difference between exempt and nonexempt employees?

Related FAQs

Related Blog Posts