Managing non-exempt employees classification in the USA (Global Payroll)

Article author
Mika
  • Updated

This article explains time tracking, payroll configurations, and compliance essentials for overtime-eligible employees also known as non-exempt employees.

See also: What is a non-exempt employee?

In this article, we cover the following: 

Key Features

  • Overtime Automation: Automatically calculates daily and weekly overtime.
  • Time Tracking: Employees log hours, and we automatically apply the rules. Just approve the overtime.
  • Compliance Support: Tools to adhere to local regulations, including meal and rest breaks (soon!).

How to add non-exempt employees

  1. When adding a new payroll hire, you can mark them as eligible for overtime (non-exempt) during the contract details stage.

  2. Then the employee will be assigned the appropriate payroll schedule: 
    • Fortnightly (26 cycles/year) for overtime-eligible employees
    • Semi-monthly (24 cycles/year) for exempt employees

Restrictions on assigning non-exempt workers to certain US states

We are currently available in 33 states and will be in all states by the end of March.

Salaried full-time non-exempt (overtime-eligible) employees are currently supported in these 33 US states: Alabama, Alaska, Arizona, Arkansas, District of Columbia, Florida, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, Wisconsin, and Wyoming.

How to see if an employee is non-exempt in Remote

Non-exempt employees will have this noted on their profile.

  1. Go to the Team overview page and click on the employee's profile name.
  2. Go to the Salary section.
  3. In the Salary section, the Overtime field shows this employee is eligible for statutory overtime.

    image (17).png

Important: If you have employees that are non-exempt and the information isn't showing up accurately in Remote, please contact us. 

Time Tracking Overview

How to access the timesheets

  • Go to the Time tracking tab and click on Timesheets.
  • From the Timesheets view, you'll see the calculated overtime.

image (16).png

Note: Employees not marked as overtime-eligible cannot log overtime.

Important: This guide explains how to manage and classify non-exempt employees. While Remote offers compliance tools, you are responsible for classifying employees according to labor laws. Accurate classification is crucial for correct payroll processing. Remote does not make employee exemption determinations.

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