Hourly To Salary Exempt: A Step By Step Guide To Transitioning
When you hire employees on an hourly wage, whether it’s for a part-time or a full-time position, it means that they are non-exempt workers. You will have to abide by the Fair Labor Standards Act (FLSA) and the California Labor Code, both of which outline a number of wage rules that you are legally obligated to follow. However, employees that are paid an annual salary instead of an hourly wage are generally considered exempt from these wage rules. As a result, you might want to consider transitioning employees on an hourly rate to a salary at some point. We’ve compiled a step-by-step guide that will help you do just that.