Is it necessary to have a category of Exempt Employees?

awhiteside

Currently we have no employees designated as Exempt, therefore all employees earn Comp Time.  There are rare occassions of overtime required, primarily because of obligations to attend night meetings...are we obligated to have a catagory of Exempt Employees where there are no problems?

TXHRGuy

In the private sector, it's never "wrong" to pay everyone on an hourly basis.  After all, being exempt takes something away from the employee, so being non-exempt favors the employee.  In the public sector, I suspect it's the same way, even though employees are earning comp time instead of over time.  Exempting an employee, where legally permissible, is a bonus to the employer, not the employee and that's why exempting people is not required.

regdunlop

you are lucky ... we here in the private sector can't offer comp time.  anywho, no requirement to have exempt workers as far as i know. having all non-exempts gets rid of the hassle and risk associated with determining exempt status.

IT HR

I would agree with the other postings regarding obligation.  The only thing I would be careful of is that I have always heard there is a fine line between whether you should give someone in the govt comp time or pay them overtime.  I would have an attorney look over this.

HR36

The sole driver on who is exempt and nonexempt is the FLSA test of salary and duties. So, the only reason you should have an exempt category for employees is if they meet the FLSA's standard for an exempt position.

TXHRGuy

[quote user="HR36"]The sole driver on who is exempt and nonexempt is the FLSA test of salary and duties. So, the only reason you should have an exempt category for employees is if they meet the FLSA's standard for an exempt position.[/quote]

 

Strictly speaking, there are three tests:

1. 
   
   Salary Basis
2. 
   
   Salary Threshold
3. 
   
   Duties

...although it is perfectly legal to pay your employees on an hourly basis even if they meet the standards for exemption from the minimum wage and overtime provisions of the FLSA...

awhiteside

Thanks for all of the posts.  Sorry I didn't respond immediatly to the responses, but what can I say...you all know how fires arise in the world of HR.  Thanks again, very helpful.