A Simple Guide to Exempt vs Non-Exempt Employees

Employment Status Advice from a Bay Area Lawyer

san francisco employment lawyer on employee status clarification

Every business owner or manager wants what is the best for the company with their primary objective being maximized profits. One of the most valuable assets for a successful business are hard working employees that are competent, time oriented, practice high levels of due diligence, and highly reliable. Such employees will ensure that there is minimal waste and that the production rate is high and efficient.

Skilled vs Non-skilled Workers

Employees can either be skilled or non-skilled workers. Skilled employees are those who offer a special type of expertise in their specific roles, while non-skilled workers mainly provide human labor that doesn’t necessarily require specialization or degrees in that particular field. They mostly work under instruction or supervision. Regardless of whether an employee is skilled or not, they are both covered under the Fair Labor Standard Act (FLSA) which dictates the minimum wages that an employee is entitled to, as well as the rate of overtime pay. For a better understanding of the provisions of the FLSA, our San Francisco Employment Lawyer discusses the difference between exempt and the non-exempt employee status.

Non Exempt Employees

These employees are entitled to minimum pay per day, week or month plus some additional payments. The extra fees usually come as a result of a worker voluntarily or involuntarily committing extra time to the business. It depends on the situation at hand, as well as the type of work. For instance, if an employee is expected to work for eight hours a day, but ends up working for ten hours, then they are entitled to minimum pay, plus two hours of overtime pay for the extra hours worked. However, this is subject to the payment scheme that is used by the employer.

Exempt Employees

Exempt employees, as the name suggests, are not entitled to any special exemptions like overtime pay or minimum pay as stipulated by the FLSA. As a result, such employees are mainly entitled to their bi-weekly pay and annual salary. Sometimes they may be assessed to make sure they meet the standards of the duties assigned to them. The employee has the right to that fixed salary regardless of whether they work for the agreed upon time frame or not.

See Also: How the California Fair Pay Act Works

Need Advice from a San Francisco Employment Lawyer?

Though the regulation in FLSA is clear and precise, it must be understood by employers and employees, to avoid being penalized. If you believe that some of your rights are being neglected, do not hesitate to contact San Francisco Attorney Daniel Vega either online through our contact form, or by phone at (415) 287-6200. We’ll be happy to take you through the process and ensure that you get what is rightfully yours.