Payday loans

March 17, 2011

What’s in a name?

Filed under: FLSA,General HR Buzz2:09 pm

Often we encounter clients who struggle to determine the Fair Labor Standards Act (FLSA) category for a position. Should Loan Officers be exempt or non-exempt? At what point does a Teller Supervisor go from being a non-exempt worker-bee to an exempt manager? Sometimes the lines are really fuzzy, aren’t they?

To confuse matters even further, some still unfortunately confuse the terms exempt and non-exempt with the terms salaried and hourly.

To clarify, “exempt” and “non-exempt” are legal terms defined by the FLSA and related case law. In a nutshell, they define whether a position is eligible to receive overtime for hours actually worked over 40 in a defined work week. It is important to note that you can pay non-exempt employees on either a salaried or hourly basis. You generally may not pay an exempt employee on a hourly basis. “Salaried” and “hourly” refer only to the payment method. You may pay employees a set regular salary on a weekly, bi-weekly, semi-monthly, or other regular payment frequency.

Remember that if you pay non-exempt employees on a salary basis, you are still required to document their hours worked, and add overtime pay for all hours worked over 40 in a week.

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