Exempt Or Nonexempt, That Is The Question

After reading comments on numerous forums and blogs pertaining to FLSA regulations, especially that of the classification of employees as exempt or nonexempt, it seems to me that there is still some confusion on how to properly classify employees.  One misconception is that all salaried employees are automatically exempt from overtime pay.  Or that an employee is exempt simply because their title appears to fit into an exempt classification.  Both are common misunderstandings but I hope that the information below will help you better determine and employee’s status under FLSA regulations.

A Bit of Background
The terms, exempt and nonexempt come from legislation known as the Fair Labor Standards Act (FLSA). The FLSA was designed to protect workers from being required to work long hours without extra payment.  The difference between exempt and non-exempt simply refers to what employees are to receive overtime pay and which employees do not.  Employees who qualify as exempt are exempt from overtime regulations as well as minimum wage laws while those employees classified as nonexempt must be paid for any overtime they work. 

What’s the Difference?
    Employees classified as nonexempt:

• Are paid for all hours worked, including overtime pay
• Must be paid no less than the federal minimum wage (or a state’s minimum wage, whichever is greater) and at an overtime rate no less than one and one-half times his/her regular rate of pay if working beyond a certain number of hours in a day or week
• Are paid more frequently
• Must take rest breaks and meal breaks

• Are paid to get the job done regardless of hours worked
• Are paid an established salary
• Are not eligible for overtime pay              
• Are not required to take meal breaks or rest breaks

• If the employee regularly supervises two or more other employees, and also
• has management as the primary duty of the position, and also
• has some genuine input into hiring, firing, promotion, or assignment decisions.

• Primary duties of a learned professional require an advanced knowledge of a particular field such as engineering, teaching, law, medical, etc. and that knowledge is usually but not necessarily, acquired with prolonged advanced education.  This job requires specialized education and involves the exercise of discretion and judgment.
• Primary duties of a creative professional require invention, imagination, originality or talent in a recognized artistic or creative field. 

• The performance of office or non-manual work directly related to the management or general business operations of the employer or employer’s clients, and
• includes the exercise of discretion and independent judgment with respect to significant business matters