What Is the Difference Between Exempt and Non-Exempt Employees?

 Posted on October 14, 2024 in Employment Law

Employers are required to comply with the Fair Labor Standards Act (FLSA), a set of federal employment laws on issues like overtime pay and minimum wage. Companies in Illinois must also comply with state laws such as the Illinois Minimum Wage Law and the Wage Payment and Collection Act. However, not all employees are covered by these rules. Some salaried workers are exempt from such requirements, while others are not exempt and are entitled to overtime pay and minimum wages.

This article will discuss the differences between exempt and non-exempt salaried employees. Make sure to consult an Illinois employment lawyer for more details or for help defending your business against claims of employment law violations.

Exempt Employees Have Minimum Salary Thresholds

Exempt employees are paid set salaries regardless of the amount of hours they work. In most cases, employees who make at least $844 per week, which comes out to $43,88 a year, are considered exempt. In January 2025, this figure will change to $1,128 a week or $58,656 annually. Those who work in the film industry must collect a minimum of $1,043 per week to qualify as exempt workers.

Exempt Employees Must Perform Certain Duties

In addition to salary thresholds, salaried workers must perform certain job duties to be considered exempt. These include:

• Executive roles: These are higher-level positions that involve the management of divisions or departments within the company. They may also involve managing teams assigned to certain tasks.
• Administrative roles: These are non-manual positions that are related to the company’s operations or management. Marketing associates, accounting officers, and human resources personnel are all examples of administrative roles.
• Professional roles: These are specialized positions that usually require a specific degree or certification. Doctors, lawyers, engineers, and architects are examples of professional roles. Creative professionals, such as writers, singers, actors, artists, and musicians, can also be considered exempt employees.
• Outside sales roles: Outside sales professionals are considered exempt and have no salary threshold.

How Do State and Federal Laws Differ Regarding Exempt Workers?

Currently, Illinois law matches federal law in terms of how employees are classified as exempt or non-exempt. However, legislation can change at any time, which is why it is important to keep abreast of state and federal employment regulations. The best way to do this is to regularly consult an employment lawyer.

Contact a Schaumburg, IL Employment Law Attorney

An employer must take care to abide by state and federal overtime and minimum wage laws when paying non-exempt workers. These requirements usually do not apply to exempt employees. Misclassifying a non-exempt worker can lead to claims of labor law violations. Protect your business by consulting The Miller Law Firm, P.C.. We are highly fluent in employment law and understand the nuances and challenges of running a business with employees. Schedule a free consultation with a Schaumburg, IL employment lawyer by calling 847-995-1205 today.