Post by Dr. Al Lee, Payscale.com
Most people in the US work force have the heard the terms “exempt” and “non-exempt,” but what do they mean? While many web sites talk about pay rate, there is not a whole lot of explanation regarding exempt and non-exempt status.
While I am not a lawyer, or even an HR specialist, I am an employee, and also hopelessly curious about all things related to pay and employment. The basic law is that employers are required by the Fair Labor Standards Act (FLSA) to classify their employees as either exempt or non-exempt.
The more I read about the meaning of "exempt" vs. "non-exempt", the more a lyric of the Paul Simon song "Train in the Distance" goes through my head, "...with disagreements about the meaning of a marriage contract, conversations hard and wild." Like a marriage, in the US an employee/employer relationship is governed by a little law, and a lot of social convention. Since much is not written down, misunderstandings are common.
Before we delve into the details, why not check out where your salary fits into all of this controversy? Find out with our ever-handy salary calculator.