Recent lawsuits have demonstrated that some employers aren’t clear on whether or not an employee can be classified as “exempt” according to the Fair Labor Standards Act. But misclassifying an employee can have disastrous financial repercussions in the form of owed back wages, so it is important to understand the difference.
The three requirements for an exempt employee are as follows:
Salary Level Test
Employees who are paid more than $23,600 per year ($455 per week) pass this test.
Salary Basis Test
An employee is paid on a salary basis if s/he has a guaranteed minimum* amount of money […]