Exempt vs. Non-Exempt Status

Definition

Classification used for employees to determine eligibility for overtime pay. Exempt employees typically don’t receive overtime, while non-exempt employees do.

What to consider

Know how your status affects your eligibility for overtime pay.
Review your job classification and benefits periodically.
Seek clarity from HR if you’re uncertain about your status.

Real world scenarios

Kyle’s role transitions from hourly to salaried, changing him to exempt status. This means he doesn’t receive overtime pay.
As a non-exempt employee, Mariana tracks her hours meticulously, ensuring overtime work is compensated fairly.
When Tina gets promoted, HR reviews her job duties to confirm any reclassification under wage and hour laws.