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Exempt vs. non-exempt as defined by the FLSA

Author: Russel Stuart
by Russel Stuart
Posted: Jul 14, 2017

The US federal law, the Fair Labor Standards Act (FLSA) has been enacted for establishing the following:

  • Minimum wage
  • Overtime pay eligibility
  • Recordkeeping
  • Child labor standards.

It covers both full-time and part-time workers who work in federal, state, and local governments, as well as the private sector. The FLSA brings under its ambit all the kinds of employees that it classifies as part-time or fulltime under its mandatory provisions.

Classification of employees is important for determining exempt and nonexempt

The FLSA makes some categories of those employees who meet its definition of fulltime employees eligible for overtime and for compensation for working over and above the standard 40 working week hours. The rate of compensation, which is to be not less than one-and-a-half times their regular pay, is determined on the pay rate and the position the employee is in.

A core component of the FLSA rules relating to overtime work and pay is who is an exempt employee and who is not. That is, some kinds of employees are exempt from overtime pay. The FLSA has provisions for determining which employees are exempt and which are not exempt for overtime pay. Making the wrong classification of who is exempt and who is nonexempt can result in legal problems for the organization.

HR and payroll professionals need to keep a host of regulations in mind if they have to be in compliance with regulatory requirements that relate to exempt and nonexempt employees.

Understanding the FLSA exempt and nonexempt rules is important

The rules pertaining to exempt vs. nonexempt overtime pay will be the topic of a highly educative webinar that is being organized by TrainHR, a leading provider of professional trainings for the areas of human resources.

Dayna Reum, who works as the Payroll Tax Manager at PetSmart Inc., and has been heavily involved in the payroll field over 15 years, will be the speaker at this webinar. Interested in understanding the nuances of overtime and part-time pay, and how exempt and nonexempt employees are classified for the purpose of payroll? Then, please enroll for this webinar by visiting

http://www.trainhr.com/control/w_product/~product_id=701757LIVE?abilogic-seo

Viewing this webinar, its entirety qualifies for a recertification credit hour that may be counted toward SHRM-CP and SHRM-SCP recertification from SHRM.

Credit is awarded based on the actual educational time spent in the program. This webinar has been approved for 1 HR (General) recertification credit hours toward aPHR, PHR, PHRca, SPHR, GPHR, PHRi and SPHRi recertification through HR Certification Institute (HRCI).

In-depth understanding of exempt and nonexempt

This webinar will start with a basic overview of the Fair Labor Standards Act. It will explain what employers are applicable and what laws the FLSA maintain. Dayna will review current exempt versus nonexempt requirements, as well as activity in the current legislation around changes to the exempt categories. She will cover the most up-to-date requirements of the law to make sure that participants are handling their employee base correctly from a Department of Labor and Fair Labor Standards Act perspective.

Payroll Professionals, Compensation Professionals, HR Professionals and Benefit Professionals will learn all the major aspects of exempt vs. nonexempt employee classification. They will understand Department of Labor categories of employees and how their pay needs to be handled, whether their company is required to follow the FLSA rules, the recordkeeping requirements an employer is required to keep, the ways of properly identifying non-exempt employees and how to properly pay them, and what makes an employee exempt.

During the course of this interesting session, Dayna will cover the following areas:

  • Fair Labor Standards Act (FLSA)
    • What is the FLSA
    • Who is covered under the FLSA
    • How does the FLSA define
    • An Employee
    • Temp Employees
    • Independent Contractors
    • Volunteers
    • Trainee/Students
    • Minimum Wage
    • Overtime
    • Child Labor
    • Recordkeeping
  • Exempt Vs. Non-Exempt
    • The Executive Exemption
    • The Administrative Exemption
    • The Professional Exemption
    • Computer Related Occupations Exemption
    • Outside Sales Exemption
    • Statutory/Non-Statutory Employees
  • Docking Pay for Exempt Employees

About the Author

About TrainHR TrainHR is a comprehensive Human Resources training solutions provider. In offering trainings that are valuable, yet cost effective, TrainHR is the ideal medium for Human Resources professionals.

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Author: Russel Stuart

Russel Stuart

Member since: Jul 12, 2017
Published articles: 63

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