Exempt Employees:
Otherwise called Salaried Employees are exempt from the Federal Fair Labor Standards Act's Minimum Wage and Overtime provisions. Exempt Employees are usually setup with a definite number of hours per day and are paid with a constant salary every month, no matter they work some extra hours more than the set number of working hours per day or even take an off for a day or more. Since their In and Out time is not a concern these employees are setup with a Standard Timesheet Format.

Non-Exempt Employees:
Also called Hourly Employees or Contract Employees who work on hourly basis and get paid hourly. They are eligible for Federal Fair Labor Standards Act's Minimum Wage and Overtime provisions. Since they are paid hourly, their In and Out time is very crucial for both the employee and the employer so they are setup with an In-out Timesheet Format.

More Information:

  • In short, the difference between Exempt and Non-Exempt Employees is who gets paid overtime and who doesn't.
  • The Federal Fair Labor Standards Act (FLSA) and the laws of the 50 States regulate what constitutes "Overtime".
  • Exempt and Non-Exempt status has little to do with job titles and whether an employee is salaried or receives an hourly wage (although in practice, hourly workers are never "Exempt"). The legal definition of "Exempt" and "Non-Exempt" has much more to do with an employee's level of responsibility or his/her status as a professional.
  • Just because Exempt Employees are exempted from the Federal Fair Labor Standards Act's Minimum Wage and Overtime provisions it doesn't mean that they cannot receive overtime compensation or cannot have overtime rule setup in their profile.
  • If a user in Web TimeSheet is setup with both Exempt and Non-Exempt Time & Time Off permissions, then the user will have an In-Out TimeSheet since Non-Exempt permission takes precedence.