Are my employees exempt from overtime?
Your employees can be categorized as exempt, which means they're not eligible for overtime, or nonexempt, which means they can earn overtime. This classification is based on how they get paid and the type of work they do. If you aren't sure where they stand, we’ll give you a 30-second rundown below.
Salaried employee with no overtime (Salary/Exempt)
- Your employee earns a fixed salary regardless of how many hours they work.
Salaried employee who is eligible for overtime (Salary/Nonexempt)
- This means that your employee earns a fixed salary if they work 40 hours or less in a given week. They’re eligible for overtime if they work more than 40 hours per week. There may also be a salary minimum depending on the state you live in.
Hourly employee who is eligible for overtime (Hourly/Nonexempt)
- Employees earn wages based on the amount of hours they work. They also earn overtime when it applies.
Want to keep digging into the differences? Check out this article to learn more.