What does exempt employee mean in Massachusetts?

What does exempt employee mean in Massachusetts?

Under the new regulations, an employee who is paid a guaranteed salary of not less than $455 per week can be classified as exempt if the employee meets the “duties” tests for an executive or administrative or professional employee as described below. Executive Employees.

What qualifies you as exempt employee?

An exempt employee is an employee who does not receive overtime pay or qualify for minimum wage. Exempt employees are paid a salary rather than by the hour, and their work is executive or professional in nature.

What is exempt and non-exempt employees?

Employees who do not satisfy the requirements for exemption must be paid minimum wage and overtime pay in accordance with the FLSA. State and local law often expressly exempts the same categories of employees that are exempt under the FLSA.

Is a salary employee exempt?

Salaried: An individual who receives the same salary from week to week regardless of how many hours he or she works. Exempt employees must be paid on a salary basis, as discussed above. Salaried nonexempt employees must still receive overtime in accordance with federal and state laws.

What is the minimum salary for an exempt employee in Massachusetts?

While there has been no change regarding what duties make one eligible to be exempt and paid a salary, effective January 1, 2020, the minimum weekly salary an employee must receive if he or she is to remain or become exempt will increase from the current minimum of $455 per week to $684 per week — the annual salary …

Is it better to be an exempt or non exempt employee?

Pros of hiring exempt employees When you hire exempt employees, you won’t pay overtime no matter how many hours these employees work per week. Conversely, you often have to pay nonexempt employees 1.5 times their usual pay rates when they work more than 40 hours in a week. You can assume they’re more experienced.

How do I know if I’m an exempt employee?

Though you may be paid a salary, your position must also meet certain requirements to qualify you as an exempt employee, specifically: With some minor exceptions, you must be paid at least $913/week or $47,476/year in salary, which cannot be reduced based on the quality or quantity of the work you perform; and.

What is the minimum salary for an exempt employee in Massachusetts 2021?

For the administrative, professional, and executive exemptions under state law, employers with 26 or more employees must pay a salary of at least $1,120 per week beginning January 1, 2021. Employers with fewer than 26 employees must pay a minimum salary of at least $1,040 in 2021.

What is the minimum wage in Massachusetts?

Recent Changes to Massachusetts Minimum Wage Law Massachusetts Minimum Wage 2019: $12.00 per hour, $4.35 per hour for tipped employees Massachusetts Minimum Wage 2020: $12.75 per hour, $4.95 per hour for tipped employees Massachusetts Minimum Wage 2021: $13.50 per hour, $5.55 per hour for tipped employees Massachusetts Minimum Wage 2022: $14.25 per hour, $6.15 per hour for tipped employees

What are the rules for exempt employees?

Exempt employees are paid not for hours worked but rather for the work that they performed. For an employee to be considered exempt, they must use discretion and independent judgment, at least 50 percent of the time and must earn more than $455 per week.

What are exempt and non exempt employees?

In the United States, under the Fair Labor Standards Act, employees are categorized as exempt and non-exempt employees. Typically, exempt employees work as executives or managers. Non-exempt employees are typically laborers, and considered to be blue-collar workers.

What are the overtime laws in Massachusetts?

Under Massachusetts overtime law, most employees must be paid one and one-half times their regular hourly rate for all hours worked in excess of 40 hours in a given work week. State law does not require overtime after eight hours in a day.