Classification
Exempt vs Non-Exempt Employees
How worker classification affects overtime eligibility under federal and state rules.
Key points
- Job title alone does not determine exemption status.
- Salary level and actual duties both matter.
- Misclassification can create back wage and penalty exposure.
Frequently asked questions
Does paying a salary make an employee exempt?
No. Exemption requires meeting both a salary basis/level test and a duties test. A salaried worker who does not meet the duties test is still non-exempt and owed overtime.
What happens if a worker is misclassified as exempt?
The employer can owe back overtime, liquidated damages, and penalties. Classification should be reviewed against current federal and state salary thresholds and duties tests.
Official sources