Exempt vs Non-Exempt Employees
The Fair Labor Standards Act (FLSA) protects non-exempt employees. As a result, they must earn at least the minimum wage and receive overtime pay.
Exempt Employees
In order to be exempt, an employee must meet all three the following requirements set by the FLSA.
Be paid a salary (as opposed to being paid hourly)
Earn at least $35,568/year
Employers may use non-discretionary bonuses and incentive payments (including commissions) paid on an annual or more frequent basis, to satisfy up to 10 percent of the standard salary level
Perform exempt job duties
Exempt Job Duties
Exempt job duties include executive, administrative, professional, computer, and outside sales employees.The Department of Labor (DOL) provides a helpful fact sheet with more information on all of the requirements that need to be met for an employee’s job duties to qualify for an exemption.
Highly compensated employees who earn at least $107,432/year or more are exempt from the FLSA if they regularly perform at least one of the duties of an exempt executive, administrative, or professional employee identified in the standard tests for exemption.
Non Exempt Employees
Otherwise, an employee is not considered exempt and protected under the FLSA.
A nonexempt employee should be paid at least minimum wage and 1.5 times their hourly rate if they work more than 40 hours a week.
Some states have different minimum wage and overtime laws. When state laws differ from the federal FLSA, you must comply with the standard most protective to employees. Check with your local labor department to learn more.
Nonexempt employees meet at least one of the following requirements:
Receive an hourly wage
Earns less than $35,568/year
Does not perform exempt job duties
Blue-collar workers do not qualify for an exemption no matter how highly they are paid. Police, firefighters, paramedics, and other first responders also do not qualify for the exemption.
Many non-exempt employees are hourly workers. However, non-exempt workers can earn salaries.
Final Paycheck Laws by State
What happens when an employee leaves a company? The following table explains the state laws surrounding when a final paycheck should be delivered. Please be sure to double check with state labor offices with further questions or legal updates (it’s possible the final paycheck law in your state may change).
State | If the Employee Quit | If you Fired the Employee | Citation |
Alabama | No law | No law |
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Alaska | Next scheduled payday that’s at least 3 days after the employee gives notice | Within 3 working days | Alaska Statute |
Arizona | Next scheduled payday | Whichever is first: within 7 working days or next payday | Arizona Revised Statute |
Arkansas | Next scheduled payday | Within 7 working days (employer will owe 2X the wages if not paid within 7 days) | Arkansas Code |
California | Within 72 hours or immediately if the employee gave at least 72 hours’ notice | Immediately (employees can recover penalties for every day wages are withheld) | California Labor Code |
Colorado | Next scheduled payday | Immediately | Colorado Revised Statute § 8-4-109 |
Connecticut | Next scheduled payday | Next business day | Connecticut General Statutes § 31-71c |
Delaware | Next scheduled payday | Next scheduled payday | Delaware Code Annotated title 19, § 1103 |
District of Columbia | Whichever is first: within 7 days or next payday | Next business day | District of Columbia Code § 32-1303 |
Florida | No law exists | No law exists |
|
Georgia | No law exists | No law |
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Hawaii | Immediately or next scheduled payday, depending on date of final notice | Immediately or next business day if conditions warrant | Hawaii Revised Statute |
Idaho | Whichever is first: within 10 days or next payday. If an employee provides a written request for earlier payment, within 48 hours of receiving the request. | Whichever is first: within 10 days or next payday. If an employee provides a written request for earlier payment, within 48 hours of receiving the request. | |
Illinois | Immediately if possible but no later than next scheduled payday | Immediately if possible but no later than next scheduled payday | Illinois Compiled Statutes 820 ILCS 115/5 |
Indiana | Next scheduled payday | Next scheduled payday | Indiana Code § 22-2-9-2 § 22-2-5-1 |
Iowa | Next scheduled payday | Next scheduled payday | Iowa Code § 91A.4 |
Kansas | Next scheduled payday | Next scheduled payday | Kansas Statute § 44-315 |
Kentucky | Whichever is later: within 14 days or next scheduled payday | Whichever is later: within 14 days or next scheduled payday | Kentucky Revised Statute § 337.055 |
Louisiana | Whichever is first: next scheduled payday or within 15 days | Whichever is first: next scheduled payday or within 15 days | Louisiana Revised Statute § 23:631 |
Maine | Whichever is first: next scheduled payday or within 2 weeks of employee’s demand | Whichever is first: next scheduled payday or within 2 weeks of employee’s demand | Maine Revised Statute tit. 26 § 626 |
Maryland | Next scheduled payday | Next Scheduled Payday | Maryland Labor and Employment Code § 3-505 |
Massachusetts | Whichever is first: next scheduled payday or the Saturday that follows an employee’s resignation if there is no regularly scheduled pay date | Immediately | Massachusetts Laws ch. 149 § 148 |
Michigan | Next scheduled payday | Next payday (some industry exceptions) | |
Minnesota | Next payday that’s at least 5 days after an employee’s last day but no more than 20 days after the last day worked. | Within 24 hours of demand | |
Mississippi | No law | No law |
|
Missouri | No law | Immediately | Missouri Revised Statute § 290.110 |
Montana | Whichever is first: next scheduled payday or within 15 days | Immediately | Montana Code § 39-3-205 |
Nebraska | Whichever is first: next scheduled payday or within two weeks | Whichever is first: next scheduled payday or within two weeks | Nebraska Revised Statute § 48-1230 |
Nevada | Whichever is first: within 7 days or next payday | Within 3 days | Nevada Revised Statute § 608.020 |
New Hampshire | Next scheduled payday | Within 72 hours | New Hampshire Revised Statute § 275:44 |
New Jersey | Next scheduled payday | Next scheduled payday | New Jersey Statute § 34:11-4.3 |
New Mexico | Next scheduled payday (task, piece and commission wages due within 10 days) | Next scheduled payday (task, piece and commission wages due within 10 days | |
New York | Next scheduled payday | Next scheduled payday | New York Labor Law § 191 |
North Carolina | Next scheduled payday | Next scheduled payday | North Carolina General Statute § 95.25.7 |
North Dakota | Next scheduled payday | Next scheduled payday | North Dakota Century Code § 34-14-03 |
Ohio | Whichever is first: next scheduled payday or within 15 days | Whichever is first: next scheduled payday or within 15 days | Ohio Revised Code § 4113.15 |
Oklahoma | Next scheduled payday | Next scheduled payday | Oklahoma State tit. 40 § 165.3 |
Oregon | Immediately if the employee gave 48 hours’ notice, otherwise within 5 days | Next business day | Oregon Revised Statute § 652.140 |
Pennsylvania | Next scheduled payday | Next scheduled payday | Pennsylvania Consolidated Statute § 260.5 |
Rhode Island | Next scheduled payday | Next scheduled payday | Rhode Island General Law |
South Carolina | Within 48 hours or next scheduled payday not to exceed 30 days | Within 48 hours or next scheduled payday not to exceed 30 days | South Carolina Codified Law |
South Dakota | Next scheduled payday or when employee returns company property | Next scheduled payday or when employee returns company property | South Dakota Codified Law § 60-11-10 § 60-11-14 |
Tennessee | Within 21 days or the next regular payday whichever occurs later | Within 21 days or the next regular payday whichever occurs later | Tennessee Code § 50-2-103 |
Texas | Next scheduled payday | Within 6 calendar days | Texas Code, Labor § 61.014 |
Utah | Next scheduled payday | Within 24 hours | Utah Code § 34-28-5 |
Vermont | Whichever is first: next scheduled payday or next Friday | Within 72 hours | Vermont Statute tit. 21 § 342 |
Virginia | Next scheduled payday | Next scheduled payday | Virginia Code § 40.1-29 |
Washington | Next scheduled payday | Next scheduled payday | Washington Revised Code § 49.48.010 |
West Virginia | Next scheduled payday | Next scheduled payday | West Virginia Code § 21-5-4 |
Wisconsin | Next scheduled payday | Next scheduled payday | Wisconsin Statute § 109.03 |
Wyoming | Next scheduled payday | Next scheduled payday | Wyoming Statute § 27-4-104 |