Employee classification options

Your employees can be classified in different ways based on their salary and the type of work they do. If you aren't sure how your employees should be classified, check out the Department of Labor website to learn more.

There are three types of classifications:

Salary/No overtime (Salary/Exempt)

  • Earn a fixed salary regardless of how many hours they work.

Salary/Eligible for overtime (Salary/Non-exempt)

  • Earn a fixed salary if they work 40 hours or less per week. Earn overtime if they work more than 40 hours per week (regulations vary per state).

Hourly/Eligible for overtime (Hourly/Non-exempt)

  • Earn based on the amount of hours they work. Earn overtime when applicable.

You will choose your employee's classification when you add them to the system. If their status changes, you can update this in their profiles at any time.


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