What qualifies as exempt employee?
An exempt employee is an employee who does not receive overtime pay or qualify for minimum wage. Exempt employees are paid a salary rather than by the hour, and their work is executive or professional in nature.
What is an exempt and nonexempt employee?
An exempt employee is not entitled overtime pay by the Fair Labor Standards Act (FLSA). These “salaried” employees receive the same amount of pay per pay period, even if they put in overtime hours. A nonexempt employee is eligible to be paid overtime for work in excess of 40 hours per week, per federal guidelines.
What is reasonable amount test?
Reasonable compensation is defined by Reg. Thus, the concept has two prongs: 1) an amount test, focusing on the reasonableness of the total amount paid; and 2) a purpose test, examining the services for which the compensation was paid. These two prongs are not separate issues, focusing on different facts.
What is a fee basis under the FLSA?
A fee basis is an agreed amount for a single job regardless of the time required to complete the job. Payments based on the number of hours or days worked and not on the accomplishment of a given single task are not considered payments on a fee basis.
Which 3 individuals would be classified as a statutory employee?
Statutory Employee Criteria Drivers who deliver food and beverages (other than milk), dry cleaning, or laundry. People who sell life insurance or annuity contracts on a full-time basis for the same insurance company. People who work from home and use supplies that are borrowed from their employers.
What jobs are FLSA exempt?
As provided by the FLSA, the Department of Labor (DOL) enforces seven classes of potentially exempt workers:
- Executive Employees.
- Administrative Employees.
- Learned Professionals.
- Creative Professionals.
- Computer Employees.
- Outside Sales Employees.
- Highly Compensated Employees.
What is considered as reasonable compensation?
Reasonable compensation is the value that would ordinarily be paid for like services by like enterprises under like circumstances. Reasonableness is determined based on all the facts and circumstances.
What is a basis fee?
A fee basis means a fixed charge for work performed. These arrangements are characterized by the payment of an agreed sum for a single job, regardless of the time required for its completion. Fee basis payments generally apply to the kind of jobs that involve unique projects or items.
What is considered a fee?
A fee is a fixed price charged for a specific service. Fees are applied in a variety of ways such as costs, charges, commissions, and penalties. Fees are most commonly found in heavily transactional services and are paid in lieu of a wage or salary.