How Do I Know If I Am an Exempt or Non-Exempt Employee?

Understanding whether you are classified as an exempt or non-exempt employee is critical, as it directly impacts your eligibility for overtime pay and other benefits under federal labor laws. The distinction can often feel confusing, but there are specific criteria under the Fair Labor Standards Act (FLSA) to help determine your status.

An exempt employee is not entitled to overtime pay under FLSA regulations. Employers are not required to compensate exempt employees for working more than 40 hours per week. However, this exemption does not mean exempt employees won’t work overtime hours as part of their job duties. Typically, exempt employees must meet certain conditions, including earning a salary of at least $684 per week (or $35,568 annually) and performing duties that fall under one of the recognized exemptions. These exemptions generally apply to executive, administrative, professional, and certain computer-related positions.

On the other hand, a non-exempt employee is entitled to overtime pay, which must be at least one-and-a-half times their regular hourly rate for any hours worked beyond 40 in a single workweek. Non-exempt employees often work hourly, but salaried employees earning below the threshold amount may also qualify for non-exempt status.

The distinction is important because employers must follow strict rules regarding payment for non-exempt employees, including adhering to overtime requirements. If they fail to do so, you may have grounds to file a lawsuit to recover unpaid wages and potentially additional damages.

If you suspect your employer has underpaid you or misclassified your employment status, the best course of action is to consult a knowledgeable attorney. At 770GoodLaw, we can help you determine whether you are classified correctly and, if necessary, fight for your rights to recover any unpaid wages. Contact us today for a free case evaluation to understand your rights and options.