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Non-exempt rows need to align with dilution periods or else , otherwise, there would be a date range without a rate. 

If dilution is turned on in your system, and if that person record has a combination of exempt and nonexempt non-exempt rows, then the non-exempt row must align with dilution periods.  Exempt rows must align with dilution periods, but non-exempt rows must also align with dilution periods if they follow an exempt row.