State Laws

What's the Difference Between Exempt and Nonexempt Workers?

exempt employees一般是文职，不受劳工法最低薪资条例所限制，工作超时无法拿到加班工资。

non-exempt employees一般是工厂里的技工或操作员，在劳工法最低工资条例管制之内，工作超时要付加班工资。

在美国，full time exempt employee的意思是老板如果要求员工加班, 是合法的，而且不用给加班费。 而员工拒绝加班也是合法的。老板可以无理由解雇员工，但是不能强迫员工加班，以员工拒绝加班为理由解雇员工。

在美国的Non-exempt Employee(非豁免员工)是受"公平劳动法案"中超时条款保护的员工.这些员工如果一周的工作超过40小时，公司则需要支付他们1.5倍的工资。

一般来说，美国公司内部大多数员工都属于这类员工，除了诸如经理、主管、外部营销人员、行政人员以及一些专业的人员(professionals)(如公司的医生、法律顾问)等，一般都属于非豁免员工（如公司生产线工人）。

美国公平劳动标准法案(Fair Labor Standards Act)于1938年颁布生效，并自颁布之日起历经数次修改. 该法案的一条主要宗旨是确保美国的工人享受最低工资的保护，法律规定雇主必须保证工人的最低小时工资，并且如果工人每周工作超过40个小时，雇主必须为超过的时间向工人支付合理的加班工资（通常是1.5倍的工资）。

于是，在办公场所催生出两种不同的员工：豁免员工(exempt employee)和非豁免员工(non-exempt employee)。这两种员工的关键区别在于豁免员工得到的是固定的周薪、双周薪、月薪或年薪，无论他们在固定的时间或一周或一个月内工作多少小时，而非豁免员工的薪水是按照小时计算的（虽然有些非豁免员工领取的是薪水）。但是，如果非豁免员工一周的工作时间超过40小时的话，需要支付加班费。

对于exempt employee来说，如果拒绝加班，很有可能被放到公司的performance improvement plan或者下一次解雇(layoff)的名单上。被无理由解雇也不是没有可能，但是一般大公司都会先给一个30~60天的performance improvement plan，证明解雇的原因是员工的能力有问题，避免以后被告歧视。

在美国，受《 公平劳动法案》 中超时条款保护的员工即是非豁免员工(Non-exempt Employee)。这些员工如果一周的工作超过40 小时，公司则需要支付他们1.5 倍的工资。
一般来说，公司内部大多数员工都属于这类员工，除了诸如经理、主管、外部营销人员、行政人员以及一些专业的人员（如公司的医生、法律顾问）等，一般都属于非豁免员工（如公司生产线工人）。
【评点】
在薪资结构里，非豁免员工是相对于豁免员工来说的，非豁免员工可以向雇主要求最低工资待遇，且需要给他们支付加班费，而对于豁免员工来说，雇主就不需要考虑这些方面的要求。
以下来自《人力资源全案》机械工业出版社作者：马克斯-梅斯默

《公平劳动标准法案》于1938年颁布生效，并自颁布之日起历经数次修改，该法案的一条主要宗旨是确保美国的工人享受最低工资的保护，法律规定雇主必须保证工人的最低小时工资，并且如果工人每周工作超过40个小时，雇主必须为超过的时间向工人支付合理的加班工资（通常是15倍的工资）。于是，在办公场所催生出两种不同的员工：豁免员工和非豁免员工。这两种员工的关键区别在于豁免员工得到的是固定的周薪、双周薪、月薪或年薪，无论他们在固定的时间或一周或一个月内工作多少小时，而非豁免员工的薪水是按照小时计算的（虽然有些非豁免员工领取的是薪水）。但是，如果非豁免员工一周的工作时间超过40小时的话，需要支付加班费。

什么人是豁免员工及其理由

这种豁免/非豁免的区分是带有极端主观色彩的。例如，负责监督员工、管理某项预算或是需要超出规定的条条框框自行进行分析、判断、解决的工作，那么该职位就可能是豁免的，而像一些行政性的工作，如填写表格或只需要按照条条框框执行、无须自己再分析判断解决的工作，这样的职位可能就是非豁免的。

如果你一直将某位员工归为豁免员工，而政府的劳工部门不认同你的划分方式，你将要向这名员工补发所有的加班费，时间要追溯到两到三年前。这笔补发款将会是很巨大的一笔数额。你采用什么样的方式划分员工的豁免身份，会因为你的企业身处行业的情况而变得很复杂。最好的解决办法是向你所在地区的劳动管理部门咨询，或是请教律师。如果这个问题没有妥善处理，将会给企业带来严重的后果。

员工不可以放弃自己获得加班补偿的权力。因此，即使员工在协议中签字认可，放弃获得加班费，这样的协议也是毫无意义的。员工还可以在日后申诉，要求自己的非豁免的身份。

http://career-advice.monster.com/salary-benefits/salary-information/whats-the-difference-between-exempt/article.aspx
By Paul W. Barada, Monster Salary and Negotiation Expert

Exempt and nonexempt: You've likely seen these terms when filling out an application, noticed them in job postings and heard them used in conversation. But if you're like most people, the difference between the two categories is fuzzy at best. Do you even know what exempt workers are exempt from?

Let's start at the beginning. The Fair Labor Standards Act (FLSA) requires that employers classify jobs as either exempt or nonexempt. Nonexempt employees are covered by FLSA rules and regulations, and exempt employees are not.

Different Compensation Structures

Exempt positions are excluded from minimum wage, overtime regulations, and other rights and protections afforded nonexempt workers. Employers must pay a salary rather than an hourly wage for a position for it to be exempt. Typically, only executive, supervisory, professional or outside sales positions are exempt positions.

Nonexempt employees, as the term implies, are not exempt from FLSA requirements. Employees who fall within this category must be paid at least the federal minimum wage for each hour worked and given overtime pay of not less than one-and-a-half times their hourly rate for any hours worked beyond 40 each week.

Tax Liability Differences

Aside from the various tax brackets into which we all fall based on our income level, there is no difference in how exempt and nonexempt employees are taxed. For both categories of workers, all pay is “earned income” and therefore taxable to the wage earner based upon tax bracket. Income is income; it doesn't matter if it's earned by the hour or as an annual salary.

Overtime Implications

Exempt employees are generally expected to devote the number of hours necessary to complete their respective tasks, regardless of whether that requires 35 hours per week or 55 hours per week. Their compensation doesn't change based on actual hours expended. Exempt employees aren't paid extra for putting in more than 40 hours per week; they're paid for getting the job done. On the other hand, nonexempt employees must be paid overtime if they work more than 40 hours per workweek, so it often behooves employers to keep nonexempt employees' hours down.

Workers' Rights and Benefits Implications?

Generally speaking, nonexempt employees receive more protection under federal law than exempt employees. However, most employers treat their exempt and nonexempt employees in a similar manner. The primary pieces of federal legislation that apply to the workplace are the right to a safe and healthful work environment, the right to equal employment opportunities, and the rights provided under the Family and Medical Leave Act and federal child labor laws. These laws apply to exempt and nonexempt workers alike.

Unemployment Implications

Although unemployment benefits vary from state to state, generally both exempt and nonexempt employees can collect unemployment benefits. But to be sure just what those benefits include, check with your state's Department of Labor.

So Which Is Better?

That depends on you. Some workers would rather be employed in nonexempt positions to ensure they're paid for every hour they work. Others prefer the latitude that comes with salaried positions. For example, most nonexempt employees are going to be held to a more stringent standard regarding things like casual time. Exempt employees can ordinarily spend a reasonable amount of time around the watercooler without incurring the boss's wrath; nonexempt employees' time tends be more closely monitored, and designated breaks are allowed only at certain times during the workday.

Generally,exempt employees are paid more than nonexempt employees, because they are expected to complete tasks regardless of the hours required to do them. If staying late or coming in early is required to do the job, exempt employees are frequently expected to do just that. Nonexempt employees typically work only the prescribed number of hours.

This article is intended to be a primer on this issue, but HR laws and regulations can be enormously complex. For more information, visit the Department of Labor's Web page that addresses these issues.

Payroll: The Difference Between Exempt & Non-Exempt Employees

http://www.cpapracticeadvisor.com/blog/11173480/payroll-the-difference-between-exempt-non-exempt-employees
by James Paille, CPP, On Jan 21, 2014

In the payroll business, there are a lot of rules that seem simple at first, but can get complex in a hurry. The rules for exemption from the Fair Labor Standards Act (FLSA) are a great example. You probably know that non-exempt employees are covered under FLSA, which imposes requirements for overtime and other aspects of employment. Exempt employees, on the other hand, are not subject to FLSA.

But a surprising number of payroll providers don't know the ins and outs of determining whether employees are exempt or non-exempt. The most common rule of thumb is that hourly employees are non-exempt, while salaried employees are exempt. This is often true, but not always. And, as is often the case in the payroll business, having a thorough understanding of the rules can save you a great deal of trouble.

With that in mind, let's take a closer look at exempt vs. non-exempt. Employees are considered non-exempt unless they fall into one of several specific categories. These include:

Administrative employees: Administrative employees must make at least $455 per 40-hour work week. Their primary duties must consist of office or non-manual work directly related to the management policies or general business operations of the employer or the employer's customers. Their job must require them to exercise discretion and independent judgment over significant matters.

Executive employees: Executive employees must make at least $455 per 40-hour work week. Their primary duties must consist of management of the enterprise in which the employee is employed or a recognized department or subdivision of that enterprise. They must regularly direct the work of two or more other employees. They must also have the authority to hire and fire, or have significant influence over the hiring and firing process.

Computer Employees: Computer employees must make at least $455 per 40-hour work week or be paid at least $27.63 per hour. They must apply system analysis techniques and procedures including consulting with users to determine hardware, software, or system functional specifications and design, development, documentation, analysis, creation, testing, or modification of computer systems or programs.

High-dollar employees: Employees who make more than $100,000 per year are generally exempt.

Exempt Professionals: The traditional "learned professions" are generally exempt. These includelawyers, doctors, dentists, teachers, architects, and clergy. Also included are registered nurses (but not LPNs), accountants (but not bookkeepers), engineers who have engineering degrees or the equivalent and perform work of the sort usually performed by licensed professional engineers, actuaries, scientists (but not technicians), pharmacists, and other employees who perform work requiring "advanced knowledge" similar to that historically associated with the traditional learned professions.

Professionally exempt work must be predominantly intellectual,it must require specialized education, and it must involve the exercise of discretion and judgment. Professionally exempt workers must have education beyond high school, and usually beyond college, in fields that are more "academic" than the mechanical arts or skilled trades. Advanced degrees are the most common measure of this, but are not absolutely necessary if an employee has attained a similar level of advanced education through other means and performs essentially the same kind of work as similar employees who do have advanced degrees.
Creative professionals: The exemption for creative professionals includes employees whose work requires invention, imagination, originality, or talent. Creative professionals contribute a unique interpretation or analysis. This includes actors, musicians, composers, writers, cartoonists and some journalists.

Identifying professionally exempt employees is usually pretty straightforward, but not always. Determining whether an employee is a "creative professional," for example, can sometimes be difficult, especially for jobs like commercial artists and journalists. This usually requires additional analysis of just what the employee actually does.

Determining an employee's exemption status isn't always simple. The wrong classification can trigger a painful inquiry from the IRS, so it pays to know the rules ahead of time and understand why each employee is classified as exempt or non-exempt.

Wage and Hour Laws in Maryland

Maryland rules on employee overtime, wage and hour law, and fair pay.
What is the minimum wage in Maryland?

As of January 1, 2015, the minimum wage in Maryland is $8 per hour. Maryland has several additional increased planned: $8.25 on July 1, 2015; $8.75 on July 1, 2016; $9.25 on July 1, 2017; and $10.10 on July 1, 2018.

Is the minimum wage different in Maryland for tipped employees?

The FLSA allows employers to pay a lower hourly minimum wage, as long as that wage plus the tips the employee earns adds up to at least the full minimum wage for each hour worked. If not, the employer has to make up the difference. In Maryland, employers can pay tipped employees an hourly wage of $3.63, as long as the employee’s tips bring the total hourly wage up to the state minimum wage.

(For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
When am I entitled to earn overtime?

In Maryland, eligible employees must receive overtime if they work more than 40 hour in a week. Bowling alley employees and residential employees in institutions other than hospitals, who care for people with intellectual disabilities or for the sick, aged, or mentally ill, must receive overtime if they work than 48 hours in a week. For agricultural work, employees must receive overtime if they work more than 60 hours in a week. Not every type of job is eligible for overtime, however. To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the Maryland Division of Labor, Licensing and Regulation.
Am I entitled to a lunch or rest break?

Maryland does not require employers to provide lunch or rest breaks. However, you are entitled to be paid if you have to do any work during a break (for example, if you have to cover the phones while you eat lunch). And, generally, you are entitled to be paid for any short breaks (five to 20 minutes) your employer provides; this time is considered part of your work day.

To learn more about wage and hour laws in Maryland, contact the state Division of Labor, Licensing and Regulation.
What are wage and hour laws?

Wage and hour laws set the basic standards for pay and time worked -- covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
Where do wage and hour laws come from?

The federal wage and hour law is called the Fair Labor Standards Act (FLSA). Most states also have their own wage and hour laws, and some local governments (like cities and counties) do, too. An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in states that have set a higher minimum wage must pay the higher amount.
Finding an employment law attorney

To locate an employment law attorney in your area, visit Nolo's Lawyer Directory, where you can view information about each lawyer's experience, education, fees, and, perhaps most importantly, the lawyer's general philosophy of practicing law. By using Nolo's directory, you can narrow down candidates before calling them for a phone or face-to-face interview

Minimum Wage Rates

$7.25 Until 12/31/14
$8.00 Effective 1/1/15
$8.25 Effective 7/1/15
$8.75 Effective 7/1/16
$9.25 Effective 7/1/17
$10.10 Effective 7/1/18
Effective Oct. 1, 2014, Prince George's Co. and Montgomery Co. minimum wage rates take effect. Employers in these counties are required to post the applicable rate information.

Minimum Wage

Most employees must be paid the Maryland State Minimum Wage Rate.

Tipped Employees (earning more than $30 per month in tips): must earn the State Minimum Wage Rate per hour. Employers must pay at least $3.63 per hour. This amount plus tips must equal at least the State Minimum Wage Rate.

Amusement and Recreational Establishments: must pay employees at least 85% of the State Minimum Wage Rate or $7.25, whichever is higher.

Employees under 20 years of age: must earn at least 85% of the State Minimum Wage Rate
for the first 6 months of employment.

Overtime

Most employees must be paid 1.5 times their usual hourly rate for all work over 40 hrs. per week. Exceptions:

Bowling establishments, and institutions providing on-premise care (other than hospitals) to the sick, the aged, or individuals with disabilities for all work over 48 hrs. per week

Agricultural workers for all work over 60 hrs. per week

Exemptions

Minimum Wage and Overtime Exemptions:

Certain agricultural employees
Executives, administrative, and professional employees
Volunteers for educational, charitable, religious, and non-profit organizations
Employees under 16 working less than 20 hours per week
Outside salesman
Commissioned employees
Employees enrolled as a trainee as part of a public school special education program
Non-administrative employees of organized camps
Certain establishments selling food and drink for consumption on the premises grossing less than $400,000 annually
Drive-in theaters
Establishments engaged in the first canning, packing or freezing of fruits, vegetables, poultry, or seafood

Overtime Only Exemptions
(must earn the State Minimum Wage Rate):

Taxicab drivers
Certain employees selling/servicing automobiles, farm equipment, trailers, or trucks
Non-profit concert promoter, theater, music festival, music pavilion, or theatrical show
Employers subject to certain railroad requirements of the U.S. Dept. of Transportation, the Federal Motor Carrier Act, and the Interstate Commerce Commission

FOR MORE INFORMATION OR TO FILE A COMPLAINT, CONTACT:
Employment Standards Service
Maryland Department of Labor, Licensing and Regulation
1100 North Eutaw Street, Room 607
Baltimore, Maryland 21201
(410) 767-2357
E-Mail Address: ess@dllr.state.md.us

EMPLOYERS ARE REQUIRED BY LAW TO POST THIS INFORMATION.
PAY RECORDS MUST BE KEPT FOR 3 YEARS ON OR ABOUT THE PLACE OF WORK.
PENALTIES ARE PRESCRIBED FOR VIOLATIONS OF THE LAW

Overtime

Maryland labor laws require employers to pay employees overtime at a rate of 1½ time their regular rate when they work 40 hours or more in a work week, unless otherwise exempt. MD Div. of Labor Wage & Hour Fact Sheet. See FLSA: Overtime for more information regarding overtime requirements.

http://www.employmentlawhandbook.com/wage-and-hour-laws/state-wage-and-hour-laws/maryland/

Holiday Pay

http://www.dol.gov/dol/topic/wages/holiday.htm

The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations or holidays (federal or otherwise). These benefits are generally a matter of agreement between an employer and an employee (or the employee's representative).

On a government contract to which the labor standards of the McNamara O'Hara Service Contract Act (SCA) apply, holiday and/or vacation fringe benefit requirements are stated in the SCA wage determinations in contracts that exceed $2,500.

On a government contract to which the labor standards of the Davis-Bacon and Related Acts apply, holiday pay and/or vacation pay is required for specific classifications of workers only if the Davis-Bacon wage determination in the covered contract specifies such requirements for workers employed in those classifications.

Lunch Break

Many employers provide employees with a rest or lunch break, whether paid or unpaid. This common practice is not required everywhere, however: The federal wage and hour law, called the Fair Labor Standards Act (FLSA), doesn't require employers to provide meal or rest breaks. Some states have stepped into the breach to require such breaks, but others have not.

If you get meal or rest breaks, your employer doesn't have to pay you for that time unless:

your state's law requires paid rest breaks (see "State Laws on Rest Breaks," below)
you have to work through your break, or your break lasts 20 minutes or less; generally, these shorter breaks are considered part of your work day and must be paid.

State Laws on Meal Breaks

Fewer than half the states require employers to provide a meal break. In those states that require meal breaks, employees who work more than five or six hours at a time typically must be allowed to take a half hour to eat. Some states prohibit employers from giving this time off near the beginning or end of the work shift. You can find a list of state meal break laws at the Department of Labor's website at www.dol.gov/whd/state/meal.htm.

You aren't entitled to be paid for this time off if you don't have to work while eating. If you do have to work while eating -- for example, by answering phones or waiting for a delivery while eating lunch -- then you have the right to be paid for that time.
State Laws on Rest Breaks

Only a handful of states -- California, Colorado, Kentucky, Minnesota, Nevada, Oregon, Vermont, and Washington -- currently require employers to allow employees to take rest breaks. With the exception of Minnesota and Vermont, which simply requires employers to give employees enough break time to use the restroom, these laws generally provide that employees can take a ten-minute rest break, with pay, for every four hours they work. A few other states allow employers to choose between giving a meal break or rest breaks.

You can find a list of state rest break laws at the Department of Labor's website at www.dol.gov/whd/state/rest.htm.

Meals and Breaks law in Maryland

Maryland labor laws require employers to provide employees under the age of 18 with a 30 minute break for every 5 consecutive hours of work. MD Stat., Labor and Employment Article, 3-210.

The Healthy Retail Employee Act requires certain employers in the retail industry to provide employees with breaks. The length of the break depends on the duration of the employee’s shift. The length of break requirements are as follows:

http://www.employmentlawhandbook.com/wage-and-hour-laws/state-wage-and-hour-laws/maryland/#2

Vacation Leave

In Maryland, employers are not required to provide employees with vacation benefits, either paid or unpaid. The Maryland Guide to Wage Payment and Employment Standards. If an employer chooses to provide such benefits, it must comply with the terms of its established policy or employment contract.

An employer may lawfully establish a policy or enter into a contract denying employees payment for accrued vacation leave upon separation from employment, so long as the employer has informed its employees in writing leave will not be paid. MD Stat., Labor and Employment Article, 3-505(b)

http://www.employmentlawhandbook.com/leave-laws/state-leave-laws/maryland/

Meal and Rest Breaks – What Small Business Employers Need to Know

Source:https://www.sba.gov/blogs/meal-and-rest-breaks-what-small-business-employers-need-know

By Caron_Beesley, Contributor
Published: January 23, 2013

Should you pay employees for rest and meal breaks? Are you even required to offer such breaks?

We all need rest and meals during work hours and the law stipulates standards for these breaks, including whether your employees should be paid for them. Here’s what you need to know:

Federal Wage and Hour Laws

Under the Fair Labor Standards Act of the U.S. Department of Labor, non-exempt employees can take short breaks (although it’s not mandatory). A short break is typically considered to be 20 minutes or less, and employees must be paid for these as hours worked. When it comes to meal breaks, anything more than 30 minutes does not generally need to be compensated as work time (although again, meal breaks aren’t required under federal law). But here’s the caveat – if your employee does any kind of work during that meal break, such as answering email or taking a business phone call, then you must pay them for that break.

Bathroom breaks, which are required under the Occupational Safety and Health Administration, are excluded from the definition of rest breaks.

To avoid any legal hassles, be sure you communicate your break policy to employees. For example, employers have been known to come under the spotlight for permitting certain workers to take frequent (paid) cigarette breaks, while other employees do not. If employees are taking unauthorized breaks, or unauthorized extensions of authorized breaks, you are not required to count the unauthorized time as hours worked (so long as the terms of what is authorized/unauthorized have been expressly communicated to employees).

State Wage and Hour Laws

Even though meal and rest breaks aren’t required under federal law, some states do impose mandatory breaks for employees in specific industries after a certain amount of hours worked. For example, in California, a meal break must be provided no later than the end of the employee’s fifth hour of work. So giving employees the option of skipping lunch to get out of work early is breaking the law.

Generally, state laws stipulate a 30-minute paid meal break. For laws in your state, check this consolidated breakdown ofstate meal break requirements andrest break laws from the Department of Labor. You can also refer to your individual state labor office.