Exempt vs. Nonexempt Employees

Exempt vs. Nonexempt Employees

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One topic that can generate ongoing confusion for business owners is employee classification: what is an exempt employee, and what is a nonexempt employee? Taking the time to review employee job duties and pay structure is essential. Failure to comply with the Fair Labor Standards Act (FLSA) and applicable state and local regulations related to employee classification may result in substantial costs to employers.

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