Exempt or Nonexempt? That is the Question!

In this course we discuss the requirements needed to determine if a worker is an exempt employee or a nonexempt employee under the Fair Labor Standards Act (FLSA).

We start with a brief review of the terms “exempt” and “nonexempt”. From this we discuss the requirements for designating an employee exempt under the FLSA. This discussion includes the definition of the 4+ categories of exempt employees, blue collar workers and first responders. This leads into a conversation about the duties requirements for each of these types of classifications under the wage and hour rules. We, then examine the requirements for paying an exempt employee including the salary basis rules and the salary level test. The salary level test include the latest update available on the latest salary levels currently in effect. Finally we will briefly review the various possible requirements on the state level for exempt employees.

This course serves as a sound basis to assist human resources, payroll or finance professionals in determining how to properly classify as an exempt employee and to understand the difference between exempt and nonexempt.