How Do I Determine Whether an Employee Is “Exempt” or “Non-Exempt”?

This is determined under the Fair Labor Standards Act (FLSA).  Factors include employees’ job responsibilities and autonomy to make decisions as part of their classification.  Employees determined to be non-exempt employees are paid minimum wage or higher for any hours worked less than 40 hours a week; for any hours over 40 worked in a week a rate of time and one-half must be paid.  Employees classified as exempt are not paid overtime under FLSA.

Job title alone does not determine classification of a job as exempt or non-exempt.  Use the job description to determine if an employee is an exempt executive.  An employee must earn a minimum $455 per week to be classified as exempt.  The most important determining factor in classifying employees as exempt or non-exempt comes from a duties test.

As always, seek legal help to make the right decision.