What is the difference between an exempt and nonexempt employee?

Exempt employees are those:

  • Who make at least $23,660 per year, which is $455 per week
  • Who are paid on a fixed salary basis irrespective of hours worked
  • Who have job duties that are considered exempt (e.g., executive, administrative, or professional)
  • Who are not entitled to overtime pay

If an employee does not meet the above requirements, they are non-exempt. You must pay them at least the federal minimum wage plus any overtime wages.

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