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Differences between Exempt vs. Non-Exempt

Sample Question:

Addressing the issue of the benefits of independent contractors versus the use of employees, the issue of exempt / non-exempt employees is important. There are two types of employees under a federal law called FLSA (Fair Labor Standards Act of 1938). One is hourly and is not paid for time that they do not work. They are called non-exempt and for them you do have to list every single exception for the attendance policy. If they no-show they are not paid and can be terminated immediately.

The second group of employees is called exempt and they are paid the same amount of pay every pay period no matter how many hours they work. They do not earn overtime (like non-exempt employees do) and their pay is not docked for tardiness (like it is for exempt employees). Does every employer need to train their human resources and management staff on the basics of this law? Should they train employees? Why or why not? Does the non-exempt or exempt categorization impact FMLA (Family Medical Leave Act) leave? Why or why not?

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Hi need help with this question to understand it better.

Sample Question:

Addressing the issue of the benefits of independent contractors versus the use of employees, the issue of exempt / non-exempt employees is important. There are two types of employees under a federal law called FLSA (Fair Labor Standards Act of 1938). One is hourly and is not paid for time that they do not work. They are called non-exempt and for them you do have to list every single exception for the attendance policy. If they no-show they are not paid and can be terminated immediately.

The second group of employees is called exempt and they are paid the same amount of pay every pay period no matter how many hours they work. They do not earn overtime (like non-exempt employees do) and their pay is not ...

Solution Summary

Eligibility for overtime is based on classification into exempt or non-exempt. There are 4 types of exempt types as outlined in the Fair Labor Standards Act of 1938 (FLSA). Also, there is an examination of determining if human resources, management staff and employees should be trained on the FLSA. Also, the impact of an employee's exempt or non-exempt status on FMLA.

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