FLSA: Exempt and Non-Exempt Employees

The terms "exempt" and "nonexempt" in reference to employee compensation status options refer to an employee's status under the Fair Labor Standards Act, generally related to whether or not they are eligible for overtime.

If an employee meets certain qualifications, they may be considered exempt from the FLSA, which means (among other things) that they do not have to be paid at an overtime rate for hours worked over 40 in a workweek.

There are a couple of different places within iSolved where this comes into play:

  1. The Jobs table. If you are using a table of possible job titles for use in Employee Maintenance > Jobs, each job title gets a classification of Exempt or Non-Exempt during setup.
  2. The salary screen. As a rule of thumb, only Exempt employees should be classified as Salary for their Pay Type in Employee Pay > Salary.

If you have not had a Jobs table created or need to have a new field added to your existing Jobs table, please contact Customer Service.

Make sure to provide the new job title and specify whether employee with that title are exempt or nonexempt when you make your request. If you are using manager and supervisor relationships for your employees, specify whether or not the new job will manage and/or supervise other employees as well.

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