What Does "FLSA Status" Mean?
An employee's Fair Labor Standards Act (FLSA) status determines if they are exempt or nonexempt. Non-exempt employees are legally entitled to be paid overtime after working a certain number of hours, while exempt employees do not receive such benefits. Understanding this difference is important to ensure that workers are fairly compensated for their work.
What is the FLSA?
The Fair Labor Standards Act is a law that sets rules for how employers must pay their workers. It makes sure they are treated fairly and get paid the right amount. The FLSA was enacted in 1938 to improve working conditions in the United States, and the law has evolved over the years.
What is an Exempt Employee?
Exempt employees are people who get a regular salary. They do not get paid by the hour, and they don't have to be given minimum wage or overtime pay. The salary might come weekly, every two weeks, twice a month, or once a month; it does not matter how often the employee gets paid for them to be exempt.
What is a Non-Exempt Employee?
Non-exempt employees are usually people who get paid by the hour. They are entitled to receive minimum wage and overtime pay. If they work more than 40 hours in a week, they should be paid 1.5 times their regular hourly rate for any extra hours worked. This is required by federal and state laws, so make sure you give non-exempt employees the correct amount of money for their overtime work.
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