Employee Classification: Exempt Vs. Nonexempt Employees
Determining Proper Classification
Salaried employees are considered to be exempt, while hourly employees are nonexempt. However, things are not always so cut and dry. There are certain situations where a salaried employee may still be eligible to be paid overtime and be entitled to a meal break
An employee’s job title is not necessarily a determining factor in deciding whether he or she is exempt. A person’s job-related duties are a better metric for deciding how an employee should be classified. For example, an employee may be named a manager of a department, but if he or she does not actually perform any managerial duties and does the same type of work as other hourly employees, he or she would be considered nonexempt.
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