Section 4.1 – Employee Classifications
It is the intent of ABC Company to provide definitions of employment classifications so that employees understand their employment status and benefits eligibility. These classifications do not guarantee employment for any specified period of time. The right to terminate the employment relationship at will at any time is retained by both the employee and ABC Company.
All employees are designated as either nonexempt or exempt under state and federal wage and hour laws:
- Nonexempt employees are employees whose work is not covered by the Fair Labor Standards Act (FLSA). They are exempt from the law’s requirements concerning minimum wage and overtime.
- Exempt employees are generally executives, managers, professionals, administrative or outside sales staff who are not exempt from the minimum wage and overtime provisions of the FLSA. Exempt employees hold jobs that meet the standards and criteria established under the FLSA by the U.S. Department of Labor.
ABC Company has established the following categories for both nonexempt and exempt employees:
- Regular full-time employees are not in a temporary status and are regularly scheduled to work the company’s full-time schedule. Generally, they are eligible for the full benefits package, subject to the terms, conditions, and limitations of each benefit program.
- Regular part-time employees are not in a temporary status and are regularly scheduled to work less than the full-time schedule but at least 23 hours each week. Regular part-time employees are eligible for some of the benefits offered by the company, subject to the terms, conditions, and limitations of each benefit program.
