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This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Payroll Payroll is the compensation a business must pay to its employees for a set period or on a given date. Read about payroll accounting here. Base Pay Base pay is an employee's initial rate of compensation, excluding extra lump sum compensation or increases in the rate of pay. What Is a Minimum Wage?
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Nonexempt employees typically work only the prescribed number of hours. This article is intended to be a primer on this issue, but HR laws and regulations can be enormously complex. For more information, visit the Department of Labor's Web page that addresses these issues. There's a lot to know when you're a member of the workforce. The more informed you are, the better off you'll be, both now and in the future.
Need some help keeping on top of the important stuff? Join Monster today. As a member, you'll get career advice and useful tips sent directly to your inbox. We'll help you make sense of the complex issues so you can concentrate on your job. Isn't that a relief? Thank you! You are now a Monster member—and you'll receive more content in your inbox soon.
By continuing, you agree to Monster's privacy policy , terms of use and use of cookies. Search Career Advice. Impermissible reductions may, in that the general rule is that an employee who is subjected to impermissible reductions in salary is no longer paid on a salary basis, and is therefore nonexempt.
However, employers have several avenues by which they can "cure" impermissible reductions in salary basis pay, and as a practical matter these make it unlikely that an otherwise exempt employee would become nonexempt because of salary basis pay problems.
The salary basis pay requirement for exempt status does not apply to some jobs for example, doctors, lawyers and schoolteachers are exempt even if the employees are paid hourly. These FLSA exemptions are limited to employees who perform relatively high-level work. Whether the duties of a particular job qualify as exempt depends on what they are.
Job titles or position descriptions are of limited usefulness in this determination. It is the actual job tasks that must be evaluated, along with how the particular job tasks "fit" into the employer's overall operations. There are three typical categories of exempt job duties, called "executive," "professional," and "administrative.
Exempt executive job duties. Job duties are exempt executive job duties if the employee. Supervision means what it implies. The supervision must be a regular part of the employee's job, and must be of other employees. Supervision of non-employees does not meet the standard. The "two employees" requirement may be met by supervising two full-time employees or the equivalent number of part-time employees.
Two half-time employees equal one full-time employee. In addition, the supervisory employee must have "management" as the "primary duty" of the job. These include in addition to supervision :. Determining whether an employee has management as the primary duty of the position requires case-by-case evaluation. A "rule of thumb" is to determine if the employee is "in charge" of a department or subdivision of the enterprise such as a shift.
One handy clue might be to ask who a telephone inquiry would be directed to if the called asked for "the boss. Thus, for example, if a "sergeant" and a "lieutenant" are each at work at the same time in the same unit or subunit of the organization , only the lieutenant is "in charge" during that time.
For example, the night manager at a fast food restaurant may in reality spend most of the shift preparing food and serving customers. The final requirement for the executive exemption is that the employee have genuine input into personnel matters.
This does not require that the employee be the final decision maker on such matters, but rather that the employee's input is given "particular weight. Exempt professional job duties. The job duties of the traditional "learned professions" are exempt. These include lawyers, doctors, dentists, teachers, architects, clergy. All work is considered nonexempt until the employer completes an exemption test to document why overtime isn't required.
Nonexempt public-sector employees can also earn comp time time off instead of overtime pay. Here are the exemption tests and their criteria:. Managers often ask whether a job is exempt or nonexempt. The Compensation Department interprets and enforces exemption at the University.
The department reviews all staff job postings and reclassification requests to determine if a position is exempt or nonexempt from overtime regulations. Office of Human Resources. In regard to overtime, employees are divided into two groups: Exempt: Employees primarily performing work that is not subject to overtime provisions of the Fair Labor Standards Act.
Nonexempt: Employees primarily performing work that is subject to the overtime provisions of the Fair Labor Standards Act. Overtime pay is required. Overtime is calculated by the workweek, not the pay period. All overtime must be approved by the responsible administrator before being worked.
Failure to obtain approval may result in disciplinary action. Academic staff on a salaried appointment are not eligible for overtime payments. Back to top Overtime FAQs How do you calculate overtime for employees in nonexempt job classifications? The regular rate includes extra premiums such as shift differentials and nondiscretionary lump-sum payments such as stability or career bonus payments.
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