These terms are used to differentiate employees who are entitled to overtime pay ("non-exempt") from those who are not ("exempt"), and are derived from the US federal Fair Labor Standards Act (FLSA).

Exempt employees

  • Are exempt from US laws regarding minimum wage and overtime pay

  • Typically receive a salary at fixed intervals (e.g. monthly or semi-monthly), rather than an hourly wage; however, the fact that an employee receives a salary does not automatically make them "exempt"

  • Are typically professionals (e.g. executives, administrative personnel, outside salespeople, highly skilled computer-related employees, licensed professionals, etc)

Non-exempt employees

 

  • Are subject to US laws regarding minimum wage and overtime pay

  • Are typically paid an hourly wage, rather than a salary

  • Are typically non-professional workers, or workers who perform tasks requiring repetition or physical skill (e.g. tradespeople, police officers, firefighters, etc)

In Replicon, these terms are used in default permission profiles. Assigning an "exempt" permission profile gives the employee a Standard format timesheet, while assigning a non-exempt profile gives the employee an In-Out timesheet.

For more information about permissions, refer to Setting Up Permission Profiles in Replicon's online help.