Sione earns roughly $22,000 per year, manages and supervises three other employees, and spends about 35 hours per week on job duties that require a fair amount of discretion and independence. Which of the following is true about Sione?
  1. Sione is nonexempt, based upon the salary requirements.
  2. Sione is exempt because he manages and supervises other employees.
  3. Sione is exempt, due to his salary.
  4. Sione is nonexempt, due to a lack of hours.
Explanation
Answer - A - In this situation, Sione is nonexempt, based upon the salary requirements.

Key Takeaway: According to the FLSA, an employee in any given business must be classified as either exempt or nonexempt. In order to be exempt, an employee must be paid a salary of at least $23,660 per year. An employee who is entitled to hourly pay (at minimum wage or above), overtime, and protections under child labor and equal pay, that employee is considered to be non-exempt.
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