Courses / HR & Employment Law Basics
21. Exempt vs Nonexempt (Wage-Hour)
The distinction determining eligibility for overtime pay under wage-and-hour laws, typically based on duties and salary tests.
Foundations of HR & Employment Law for Talent Acquisition
Exempt vs Nonexempt (Wage-Hour)
A legal classification that determines whether an employee must receive overtime pay and minimum-wage protections.
"I need to know which hires are eligible for overtime so we budget total compensation correctly and stay compliant."
Exempt employees are excluded from overtime pay under wage-and-hour law if they meet specific duties and (often) salary thresholds; nonexempt employees are entitled to overtime and minimum-wage protections. Determination depends on written tests set by law and can’t be decided by job title alone.
"I need to know which hires are eligible for overtime so we budget total compensation correctly and stay compliant."
Exempt employees are excluded from overtime pay under wage-and-hour law if they meet specific duties and (often) salary thresholds; nonexempt employees are entitled to overtime and minimum-wage protections. Determination depends on written tests set by law and can’t be decided by job title alone.