Classification of Employees for Personnel Manual or Employee Handbook regarding Full Time, Part Time, Temporary, Leased, Exempt, and Nonexempt Employees
Description Employees Personnel Regarding
How to fill out Employees Employee Leased?
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Employees Employee Exempt FAQ
Under the HCE duties test: The employee's primary duty must be office or nonmanual work. The employee must "customarily and regularly" perform at least one of the bona fide exempt duties of an executive, administrative or professional employee, as described in the regulations.
An exempt employee is not entitled overtime pay by the Fair Labor Standards Act (FLSA). These salaried employees receive the same amount of pay per pay period, even if they put in overtime hours. A nonexempt employee is eligible to be paid overtime for work in excess of 40 hours per week, per federal guidelines.
The most common roles considered exempt include professional, executive, outside sales, and administrative. On the flip side, non-exempt employees must be paid overtime -- one-and-a-half times their hourly rate, for any hours worked beyond 40 each week.
Outside Sales Employee: To be exempt, an outside sales employee must have a primary duty of making sales or obtaining orders or contracts for services, and the employee must be customarily and regularly engaged away from the employer's place of business.
Requirements differ from state to state, but the FLSA (Fair Labor Standards Act) classifies exempt employees as anyone doing jobs that fall into these categories Professional, administrative, executive, outside sales, STEM (Science, Technology, Engineering, and Math) and computer related.
When an employee is considered exempt, it means they are excluded from the specific rights created by the FLSA. Typically, an employee who is paid a salary instead of hourly pay will be considered exempt. A full-time exempt employee works at least 40 hours per week.
Exempt employees aren't paid extra for putting in more than 40 hours per week; they're paid for getting the job done. On the other hand, nonexempt employees must be paid overtime if they work more than 40 hours per workweek, so it often behooves employers to keep nonexempt employees' hours down.
Exempt employees do not earn overtime pay, no matter how many hours they work in a week or per day. There are 2 tests to determine how an employee is categorized.
Employees usually are classified according to the hours worked and the expected duration of the job. Accordingly, they generally fall into three major categories: full-time, part-time, and temporary employees.
