As nouns the difference between debt and liability is that debt is an action, state of mind, or object one has an obligation to perform for another, adopt toward another, or give to another while liability is the condition of being liable.
California law requires that in order to be classified as exempt, an employee must earn a monthly salary which is twice the state minimum for a full time employee (40 hours per week). Currently the minimum salary for a full time, exempt employee is $33,280 per year.This will increase on July 1, 2014 to a minimum exempt salary of $37,440 per year. By 2016, employees will need to earn at least $41,600 per year to meet the minimum salary test for exempt status.State minimum wage law will also impact the pay of commissioned inside sales employees.his will increase on July 1, 2014 to a minimum exempt salary of $37,440 per year. By 2016, employees will need to earn at least $41,600 per year to meet the minimum salary test for exempt status.
Under the FLSA employees are classified as non-exempt or exempt. To be exempt, an employee must pass all three âtestsâ, salary level, salary basis, and duties, as outlined by the FLSA. The salary level test: Employees who are paid less than $23,600 per year ($455 per week) are nonexempt.The salary basis test: An exempt employee must receive a regular, predetermined amount of compensation each pay period on a weekly, or less frequent, basis.on-exempt means that an employee is subject to the overtime and minimum wage requirements prescribed by the Fair Labor Standards Act (FLSA). Conversely, exempt employees are excluded from overtime pay provisions. Hourly paid or salaried are terms referring to payment methods.