Essay About Exempt Employees And Upper Management

Business Employees
The Fair Labor Standards Act (FLSA) requires employers to classify jobs into two categories, exempt or non exempt. As with all companies, Toys R Us has both exempt and non exempt employees. This classifies employees into two different groups. Management and upper management are classified as exempt employees and receive compensation by salary. All other employees are considered non exempt employees receive an hourly pay. Toys R Us offers both part time and full time positions for hourly positions. Most retail store employees, such as sales associates and customer service representatives, are classified as non exempt. The main difference between exempt and non exempt employees is that non exempt employees are protected by the FLSA rules and regulations and exempt employees are not. Exempt positions are not entitled to minimum wage or overtime compensation. Overtime compensation for hourly employees includes time and a half when working over forty hours per week. Toys R Us exempt employees include supervisors, store managers, regional office managers, and corporate and executive positions. Some corporate positions include Human Resources, Operations, Legal, and Finance positions. Exempt employees may be required to work more or less than forty hours per week based on their job duties. Since they are compensated by salary, the amount of payment stays the same regardless of the amount of hours they work. Exempt employees are expected to work the hours necessary in order to complete their job duties and tasks. For other compensation such as bonuses, non exempt employees do not receive a consistent bonus based on performance and are only offered bonuses periodically compared to a supervisor bonus that can be provided every month or quarter.