What are the benefits for an exempt employee?


Quick Answer

The primary benefits of being an exempt employee are increased earnings and less workplace stringency. Exempt employees are usually classified as executive, professional or administrative and tend to have higher-ranking job titles than non-exempt employees. Exempt workers receive valuable leadership training when performing voluntary non-exempt worker tasks.

Continue Reading

Full Answer

The federal government sets minimum salary standards for exempt employees in the United States, and salaried employees must be paid at least this minimum each week. In most cases, this minimum salary is higher than what the average non-exempt hourly worker earns. These high salaried jobs pay more, because salaried employees are exempt from overtime wage laws. Therefore, employers don't have to pay exempt employees overtime no matter how many hours these staff persons work per week. The downside to this arrangement is that salaried employees must sometimes continue working after normal business hours.

Even though exempt employees are obligated to work longer, or volunteer to work extra hours when needed, exempt employees enjoy more on the job freedom. Exempt workers can take breaks whenever they wish without repercussions. Employers sometimes offer additional perks to exempt employees in lieu of paying them overtime. Most exempt workers are not closely monitored by management, which is ideal for people who dislike being micromanaged. Exempt workers do receive unemployment benefits similar to non-exempt workers, but state laws vary.

Learn more about HR

Related Questions