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"Exempt"? "Non-exempt"?


friendofsheila
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Exempt employees tend to ear higher wages (e.g. salary v hourly for nonexempt employees, or perhaps better benefits, including participation in stock plans [options and employee stock purchase programs]). There are strict limits on how many people a company can call exempt, so that it doesn't skirt overtime laws by simply labeling everyone exempt.

 

Kevin Slater

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Exempt and non-exempt are terms of art under the Fair Labor Standards Act, a federal statute enacted in the 1930s. Exempt refers to employees who meet the regulatory tests so as not to be subject to the FLSA's requirement that 1.5 times hourly wage be paid for hours worked in excess of 40 in a week. Managerial, supervisory and professional workers who earn more than a specified amount are exempt. The detailed regulations specify how to determine whether a position is managerial, supervisory or professional and set the monetary cut-offs. The statute delegates the job of issuing these regulations to the US Department of Labor. There was a persuasive op-ed article in The New York Times today suggesting that the earnings level necessary to qualify as exempt should be adjusted sharply upwards, because too many modestly-compensated workers are exempt under the current test. The Labor Department could do this without having to get congressional authorization, but they have to follow a process specified in the Administrative Procedure Act which is very bureaucratic and time-consuming, so it could not just be done overnight.

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I hadn't heard of this distinction before. In Ontario, all employees who agree to work over 44 hours a week must be paid at least time and a half for those extra hours., unless they agree to average it out over 2 or more weeks.

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Exempt and non-exempt are terms of art under the Fair Labor Standards Act, a federal statute enacted in the 1930s.

 

And there's quite a lot of state statute built on it, too.

 

My current employer wouldn't have been considered liberal in the 1950s. They go through absolute gymnastic contortions over the definitions of exempt and non-exempt, using some really obscure references within CA labor law.

 

I don't really give a crap. The checks clear and they leave me alone. And if they ever do start giving me crap, well, I've quit better jobs before. :cool:

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