May 13, 2005 09:49
19 yrs ago
10 viewers *
English term

salaried non-exempt employees

English Other Marketing / Market Research
Would appreciate if someone could explain what 'salaried non-exempt employees' means in the following context, which appears in a HR questionaire as follows:

WHAT IS YOUR LEVEL IN THE ORGANIZATION?
Hourly (including hourly non-exempt and salaried non-exempt employees)

Responses

+12
21 mins
Selected

receive a salary rather than an hourly wage and can work overtime and get paid for it

Exempt has nothing to do with taxes, it refers to whether the employee gets paid overtime or not. See ref.

All positions will be classified as either exempt or non-exempt to determine eligibility for overtime compensation.

1. Exempt: managerial, professional, and administrative positions. Employees assigned to exempt positions are not eligible for overtime compensation.

2. Non-Exempt: non-supervisory or office staff positions. Employees assigned to non-exempt positions are eligible for overtime compensation.
http://www.nndpm.navajo.org/Personnel Polices Man/08_Overtim...

The other distinction is salaried vs. hourly: fixed compensation (e.g., amount established for the year, then divided into equal payments) vs. payment per hour for the no. of hours worked.
Peer comment(s):

agree Marian Greenfield : threshhold for exempt status also has to do with salary, As I recall, back in the 90s, all staff making less than $25,000 annually had to be eligible for overtime
10 mins
yes, it looks like the current threshold is $23,660/year - http://leg1.state.va.us/cgi-bin/legp504.exe?051 sum SB705
agree npis : Note to add to Marian's: even non-exempt above $40,000 annually are eligible for overtine still, at least where I work. Good job, Cindy.
23 mins
thanks...I used to work in HR :-)
agree Vicky Papaprodromou
1 hr
agree Robert Donahue (X)
1 hr
agree Maria Nicholas (X)
1 hr
agree tappi_k
2 hrs
agree Alfa Trans (X)
2 hrs
agree Alexander Demyanov
2 hrs
agree Xuchun
2 hrs
agree RHELLER : definitely :-) (this does exist but usually salaried employees are exempt)
3 hrs
maybe it's the threshold
agree Can Altinbay : It's generally the kind of work. If the employer can get away with telling people they're professionals, they (not the employee) are exempt - from paying overtime. Salaries are possibly higher.
10 hrs
agree Alexandra Tussing
14 hrs
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4 KudoZ points awarded for this answer. Comment: "Graded automatically based on peer agreement."
-1
10 mins

exempt from income tax

My guess would be the non-exempt refers to taxes.

That is employees who pay taxes.
Peer comment(s):

disagree Carmen Schultz : not so in USA! The only persons exempt from paying taxes need to make very low wages to qualify.
44 mins
You are right, I commiserate with you :) I was only guessing, notice that the confidence indicator I have chosen is 2. Perhaps it would have been better if I had kept quiet. But then, kudoz is addictive :(
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+2
25 mins

non-exempt employees are covered by FLSA rules and regulations

Explanation:
The Fair Labor Standards Act (FLSA) requires that employers classify jobs as either exempt or non-exempt. Exempt employees are covered by FLSA rules and regulations, and exempt employees are not.
The employee has right to choose.
The differences are the following:
Different Compensation Structures
Tax Liability Differences
Overtime Implications
Workers' Rights and Benefits Implications
Unemployment Implications

See the website for detailed explanation.
Peer comment(s):

agree Carmen Schultz
30 mins
Thanks.
agree Can Altinbay : Nice additional information.
10 hrs
Thanks.
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