Why accurate employee classification matters
Avoid legal fines and penalties
Misclassifying employees can result in significant fines and penalties from the IRS and Department of Labor.
Prevent back wages and benefits issues
Misclassification can lead to unpaid wages and benefits, requiring retroactive compensation.
Minimize operational disruptions
Legal actions, audits, and compliance challenges can disrupt business operations and divert resources.
Protect your reputation
Misclassification disputes can damage your company's reputation and impact employee morale and retention.
Watch 1-minute overview
See how the Exempt / Non-Exempt Analyzer simplifies employee classification.
How it works
1. Enter employee info
Input info about your employee including job title, duties, salary, and working hours.
2. Automated analysis
Our tool analyzes the entered data against the FLSA criteria to determine the correct classification.
3. Receive your report
Get a comprehensive report that classifies your employee as exempt or non-exempt and shows why.
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FAQs about Employee Classification
What is the difference between exempt and non-exempt employees?
Exempt employees are not entitled to overtime pay under the Fair Labor Standards Act (FLSA). They typically receive a salary rather than hourly wages and have job duties that are executive, professional, or administrative in nature. Non-exempt employees, on the other hand, are entitled to overtime pay for hours worked over 40 in a workweek and are usually paid on an hourly basis.
How is an employee classified as exempt or non-exempt?
Classification is based on the employee’s specific job duties and salary. To qualify as exempt, an employee must meet certain criteria regarding their job responsibilities and must also be paid a minimum salary set by the FLSA.
Can an employee's classification change?
Yes, an employee’s classification can change if there are significant changes in their job duties or salary. It is important for employers to regularly review job classifications to ensure compliance with the FLSA.
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Ensure compliance and avoid costly mistakes with our affordable employee classification tool, developed by top employment law experts.