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An exempt employee is not entitled to overtime pay according to the Fair Labor Standards Act (FLSA). To be exempt, you must earn a minimum of $684 per week in the form of a salary. Non-exempt employees must be paid overtime and are protected by FLSA regulations.
Independent contractors, who are not considered legal employees, are also exempt from overtime law. Other exempt positions include some transportation workers, certain agricultural and farm workers, and some live-in employees such as housekeepers.
An exempt employee is an employee who does not receive overtime pay or qualify for minimum wage. Exempt employees are paid a salary rather than by the hour, and their work is executive or professional in nature.
No mandatory compensatory time off is permitted for wage employees or in lieu of FLSA overtime pay.
Examples of non-exempt employees include contractors, freelancers, interns, servers, retail associates and similar jobs. Even if non-exempt employees earn more than the federal minimum wage, they still take direction from supervisors and do not have administrative or executive positions.
Comp time is calculated by multiplying 1.5 times overtime hours worked.
Delaware does not have any specific state laws pertaining to overtime pay. Therefore, the state follows the Fair Labor Standards Act (FLSA), which essentially makes employers pay employees "time and a half" (1.5 times the employee's regular hourly pay rate) for all hours the employee works in excess of 40 in a week.
Compensatory time off is paid time off the job which is earned and accrued by an employee in lieu of immediate cash payment for employment in excess of the statutory hours for which overtime compensation is required by section 7 of the FLSA.
The FLSA sets the maximum amount of comp time that may be accumulated: nonexempt employees who work in "a public safety activity, emergency response activity, or seasonal activity" may accumulate up to a maximum of 480 hours of comp time, while other employees are limited to 240 hours.
Exempt or Nonexempt. Employees whose jobs are governed by the FLSA are either "exempt" or "nonexempt." Nonexempt employees are entitled to overtime pay. Exempt employees are not. Most employees covered by the FLSA are nonexempt.