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Exempt vs. Nonexempt Employees: A Critical Distinction for Business Success

Employee classification stands as a cornerstone in the architecture of any successful business, particularly for startups poised for growth. At the heart of this lies a critical decision: distinguishing between exempt and nonexempt employees. This key differentiation affects not just payroll and compliance, but resonates through aspects of operational management, employee satisfaction, and the overall financial health of a company.

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