Non-Exempt Employee

The Federal Government defines a non-exempt employee as a worker that is protected by the minimum wage and/or overtime compensation rules and regulations of the Department of Labor.

Exempt and Non-Exempt Employees

Exempt Employees

The Federal Labor Standards Act of 1938 sets the standards as it relates to Exempt and Non-Exempt employees and their associated compensation and work standards. The Labor Standards Act is located in Chapter 20 Section 201 of the Federal Code. This Act is applicable to those small business operations with more than $500,000 of annual revenues and who participate in interstate commerce.

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