Exempt for what?
Non-exempt means that an employee is eligible for at least your state or local minimum hourly wage, breaks for rest and meals, and overtime for more than a certain number of hours worked per day or per week.
Non-exempt jobs that you might have early on are administrative assistants and entry-level programmers.
Exempt employees are paid a salary to complete a set of tasks, whether executive, professional, or administrative. Typically, they must have some management duties, input into staffing decisions, or advanced skills. It’s complicated – check out these three ways to test whether a job is exempt.
Exempt employees are not eligible for overtime. These roles typically expect benefits to be included in their salaries, even if you aren’t required legally to provide them.
As you think about who you’re likely to hire — more exempt or more non-exempt — you’ll understand more about your human resources and compliance needs.
If you have non-exempt employees, you will need a system to track their hours and will have more work each payroll. You’ll need accrue their sick and paid vacation time in compliance with local laws. You might need scheduling tools for shifts and to avoid unintended overtime costs.
If you have exempt employees, you may need to consider whether to offer benefits as a recruiting tool, which come with significant added expenses and administration. You may need more sophisticated paid leave and vacation policies.
– Jill James