One of the first tasks for an employer is to determine whether a specific position is considered nonexempt or exempt under the federal Fair Labor Standards Act (FLSA). Nonexempt employees must be paid hourly, whereas exempt employees must be paid with a predetermined minimum salary, unless the employee qualifies under one of the rare exceptions (which do not normally apply to pregnancy centers).
Nonexempt employees are entitled to overtime compensation. Exempt employees are not entitled to overtime compensation.
The FLSA exempts from its minimum wage and overtime pay requirements certain executive, administrative, and professional employees. Whether a job position is considered exempt from overtime requirements depends upon the duties of the position and the employee’s receipt of a minimum salary amount.
Exempt employees must also be paid a certain minimum salary. Any employee earning less than this annual minimum salary must be treated as a nonexempt employee and afforded the right to earn minimum wages and overtime pay - even if this employee might otherwise meet the federal definition of an executive, administrative, or professional employee.
Adapted from Care Net's Legal Solutions Manual, available for purchase in our online store.This information is generic and provided for educational purposes only. For guidance and advice on specific situations, contact a local attorney.