According to the Fair Labor Standards Act, an employee’s FLSA status determines whether they are exempt or non-exempt. Employees who fall under the category of non- exemption are entitled to overtime compensation after working a specific number of hours, whereas exempt employees are not eligible for overtime.
There’s a lot that goes into determining whether an employee is exempt or non-exempt, from the individual’s principal responsibility to their pay scale.
However, keep in mind that many employees are non-exempt, which means that the FLSA’s overtime restrictions and other requirements will apply to them.
When you have non-exempt workers, it’s critical that you follow all of the requirements and keep track of everything. Failure to do so might lead to a slew of unpleasant repercussions, including overtime claims from employees.