Understanding the difference between exempt and non-exempt status is crucial for determining overtime eligibility under the FLSA.
Must be paid 1.5x for hours over 40/week
Typically paid hourly (but can be salaried)
Hours must be tracked
Most employees fall into this category
Not entitled to overtime pay
Must be paid on salary basis
Must meet salary AND duties tests
Typically management/professional roles
To be considered exempt, employees must be paid on a salary basis at a minimum level set by the Department of Labor.
Minimum Weekly Salary
$844
Annual Equivalent
$43,888
Note: Some states have higher salary thresholds. California, for example, requires a salary of at least 2x the state minimum wage for exempt status.
Meeting the salary threshold alone is not enough. The employee's job duties must also meet specific criteria. There are three main exemption categories:
Primary duty is management of the enterprise or department
Customarily directs the work of 2+ other employees
Has authority to hire/fire or input on personnel decisions
Primary duty is office/non-manual work related to management or business operations
Exercise of discretion and independent judgment on significant matters
Primary duty requires advanced knowledge in a field of science or learning
Knowledge customarily acquired through prolonged specialized instruction
Includes doctors, lawyers, engineers, teachers, accountants
Special rules apply to computer professionals:
Minimum Hourly Rate
$27.63/hr
Or Minimum Weekly Salary
$844/week
Qualifying duties include:
Application of systems analysis techniques
Design, development, documentation, analysis of computer systems
Design, testing, modification of computer programs
Note: Help desk technicians, computer repair technicians, and similar positions typically do NOT qualify for this exemption.
A simplified test applies to highly compensated employees:
Minimum Annual Compensation
$132,964
Must still be paid on salary basis
Must perform at least one duty from executive, administrative, or professional categories
Duties test is less stringent than standard exemptions
| Myth | Reality |
|---|---|
| "Salaried employees don't get overtime" | Being salaried alone doesn't make you exempt - you must also meet duties tests |
| "Job title determines status" | Actual job duties matter, not titles. A "Manager" title doesn't automatically mean exempt |
| "Employers can choose to classify you as exempt" | Classification must be based on FLSA criteria, not employer preference |
| "Small businesses are exempt" | Most employees are covered even if the business is small |
If you believe you're incorrectly classified as exempt and should be receiving overtime pay, you have options:
Review your duties: Compare your actual job responsibilities against the exemption criteria
Talk to HR: Ask about your classification and the reasons for it
File a complaint: Contact the Department of Labor Wage and Hour Division
Consult an attorney: Employment lawyers can evaluate your situation
Disclaimer: This information is provided for educational purposes only. Exemption classifications can be complex and fact-specific. For a definitive determination of your status, consult with the Department of Labor or an employment attorney.