Tuesday, May 19, 2009

Exempt vs. Non Exempt

Q: Sometimes I see the terms Exempt and Non Exempt Status in job postings. What’s that all about?

1 comment:

USDCareerBlog said...

Good question.

The Federal Fair Labor Standards Act provides overtime pay standards. Some employees, such as executive and administrative employees, are exempt from the requirements of the Act. These exemptions are generally based on the responsibility, independent judgment, and decision making authority required in the job.

Employees in non-exempt jobs must be paid overtime for hours worked over 40 hours per week. This means that all non-exempt employees' time worked must be recorded to be in compliance with the Act.

Bottom line - Exempt employees are not eligible to receive overtime pay. And it is common for exempt employees to put in more than a typical 40 hour, 9-5 work week.