The FLSA Exempt Vs. Non-exempt Employees Essay - 903 Words

The FLSA: Exempt Vs. Non-exempt Employees President Franklin D. Roosevelt enacted the FLSA on June 25, 1938. It was signed in as a federal labor law to provide criteria for governing general labor practices such as overtime, minimum wages, child labor protections and equal pay. The Fair Labor Standards Act is a long and extensive document in and of itself. It defines many exceptions and exemptions. For purposes of this paper the portion of the FLSA that will be concentrated on is the difference between exempt and non-exempt employees. Let’s begin by defining exempt and non-exempt. Non-exempt employees are those that are paid on an hourly basis and receive overtime compensation at one and one-half times their base pay for†¦show more content†¦By this definition an employee can expect to receive a guaranteed minimum amount of pay each pay period. If an employee works a minimum of one hour during a work period the employee should receive the full amount of the guaranteed minimum payment. The salary basis test is subject to many exceptions and interpretations. An employee, who receives benefits for sick leave that is accrued in some type of benefit plan, for example, is still considered exempt. Employees who do not work at all during a pay period can also have reduced pay, this does not mean they are not on salary but that they performed no work duties. One exact exception is that computer professionals#61482; may be paid hourly and still be considered exempt, as long as his/her hourly wage is at least 6.5 times the minimum wage. The duties test provides standards by which employees can be considered exempt according to the duties they perform. There are three general characteristics that may qualify a person as exempt. The executive exemption applies to those employees who have management duty, direct the work of two or more people, have authority to hire and fire or make decisions that affect the employment status of others, make decisions affecting the business and require a high degree of independent judgement, who are paid a salaryShow MoreRelatedFair Labor Standards Act1423 Words   |  6 Pages Overview The Fair Labor Standards Act of 1938, as amended is also referred to as the Act or FLSA. The Act provides for minimum standards for both wages and overtime entitlement, and spells out administrative procedures by which covered work time must be compensated. FLSA also include provisions related to child labor, equal pay, and portal-to-portal activities. 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