You have heard about salary exempt and salary non exempt, and basically you get baffled which is more favorable. Should I be under this classification or that? Making your mind up on the benefits that would suit you more can be a daunting task. In this article, though we will talk about at bit of salary exempt, we will focus more on salary non exempt.
Let us look into what it really is and what it means to belong in that category. Workers or employees who fall under this classification are not exempted from Fair Labor Standards Act (FLSA) rules and regulations, hence the term non exempt. They should be paid accordingly with the required minimum hourly pay and be compensated for the corresponding extra time worked on.
Workers or employees with salary non exempt are paid on a fixed basis and when they work more than 40 hours a week, they are given overtime pay. You may not enjoy the perks of having casual time since you are likely to be monitored but you get to be paid of the extra hours you put in your work. Coffee breaks are allowed, you are however, expected not to go beyond the allowed time. Yes, employees under salary exempt may enjoy some casual time at work, if they do not wisely use their time, they may need to stay in late to get the job done. And though they generally have more salary pay, these employees are not paid for the extra time they put in.
When it comes to tax, there is no difference with salary exempt and salary non exempt. Employees will be consequently taxed because they have earned an income regardless whether it is fixed or hourly. Employers by and large deal with employees under both classifications in the same approach. Labors Acts or Laws on workers’ rights, benefits and protection are primary applied to salary exempt and salary non exempt.
You have to remember that employers monitor you on how you maximize your time because they want to keep the hours which you normally work. Otherwise, they are expected by Law to pay you for every extra hour you put on your job. That is why they are strict on keeping an eye on your work. But hey, at least you get paid by the hour.