What does salary exempt employee mean?
James Olson
Updated on April 05, 2026
Exempt employees are paid a salary rather than by the hour, and their work is executive or professional in nature. Exempt employees stand in contrast to nonexempt employees, who must be paid at least the minimum wage—and overtime when they work more than the standard 40-hour workweek.
Are nurses salaried?
Depending on your role as a nurse, there are usually several ways you can be reimbursed for the care you perform. For most of us, there are two basic forms of compensation for nurses: hourly and salaried. The benefits and detriments of both are varied.
Does an exempt employee have to be paid salary?
Exempt employees in California generally must earn a minimum monthly salary of no less than two times the state minimum wage for full time employment. Simply paying an employee a salary does not make them exempt, nor does it change any requirements for compliance with wage and hour laws.
Who qualifies for salary exempt?
With few exceptions, to be exempt an employee must (a) be paid at least $23,600 per year ($455 per week), and (b) be paid on a salary basis, and also (c) perform exempt job duties. These requirements are outlined in the FLSA Regulations (promulgated by the U.S. Department of Labor).
Do nurses make salary or hourly?
Salaried vs. More than half the RNs surveyed (56 percent) say they are paid by the hour, while the rest are salaried. The average hourly rate for full-time RNs who are paid hourly is $38, according to the survey, the same as last year.
How do I know if I’m an exempt employee?
Under the Fair Labor Standards Act (FLSA), you are considered an exempt executive if:
- Your salary is at least $455 per week or $23,660 per year.
- Your primary duty is managing the enterprise.
- You customarily and regularly direct the work of two or more other employees.
Can a nurse be considered an exempt employee?
Nurses that supervise other nurses may be considered to have managerial duties and as such be an exempt employee. Healthcare employers should review their process for classifying nurses to ensure that a thorough evaluation has been done to determine whether the nurse is entitled to overtime and minimum wages as a nonexempt employee.
Can a licensed practical nurse be exempt from overtime?
Licensed practical nurses and other similar health care employees, however, generally do not qualify as exempt learned professionals, regardless of work experience and training, because possession of a specialized advanced academic degree is not a standard prerequisite for entry into such occupations, and are entitled to overtime pay.
How much overtime do registered nurses get paid?
Registered nurses who are paid on an hourly basis should receive overtime pay. However, registered nurses who are registered by the appropriate State examining board generally meet the duties requirements for the learned professional exemption and, if paid on a salary basis of at least $684 * per week, may be classified as exempt.
Who is exempt from the Learned Professional exemption?
Those exemptions are for executive, administrative and professional employees. On occasion, an employer could have a nurse employee who fits into the executive or administrative exemption (e.g. a nurse who supervises other nurses), but historically, the question has been whether a nurse fits into the learned professional exemption.
