{"id":81653,"date":"2022-08-30T20:06:14","date_gmt":"2022-08-30T18:06:14","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=81653"},"modified":"2024-07-16T16:23:06","modified_gmt":"2024-07-16T14:23:06","slug":"exempt-vs-non-exempt-employees","status":"publish","type":"post","link":"https:\/\/preproduction.factorialhr.com\/blog\/exempt-vs-non-exempt-employees\/","title":{"rendered":"Essential guide to exempt vs non-exempt employees"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">As an employer or human resources manager, you have a legal duty to properly classify each and every employee that you hire. This means determining whether or not they are exempt vs non-exempt employees under <\/span><span style=\"font-weight: 400;\">FLSA guidelines<\/span><span style=\"font-weight: 400;\">. Failure to do so can result in hefty fees and penalties. However, this is not always as easy as it sounds, especially if your employees fall within particular thresholds or perform multiple duties.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are confused about the difference between exempt vs non-exempt employees, as many employers are, then you have come to the right place. We are going to look at definitions of the two types of employment classification and explain what factors you need to consider so that you know how to classify the employees that you are hiring. We will also discuss the advantages and disadvantages of both employment types and share examples to help you understand the difference.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/templates\/download-free-hr-audit-checklist\"><img decoding=\"async\" class=\"alignnone wp-image-86549\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/08\/18151232\/HR-Audit-checklist-NEW-300x300.jpg\" alt=\"\" width=\"381\" height=\"381\" srcset=\"https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2022\/08\/18151232\/HR-Audit-checklist-NEW-300x300.jpg 300w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2022\/08\/18151232\/HR-Audit-checklist-NEW-150x150.jpg 150w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2022\/08\/18151232\/HR-Audit-checklist-NEW-160x160.jpg 160w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2022\/08\/18151232\/HR-Audit-checklist-NEW-80x80.jpg 80w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2022\/08\/18151232\/HR-Audit-checklist-NEW.jpg 525w\" sizes=\"(max-width: 381px) 100vw, 381px\" \/><\/a><\/p>\n<p><b><div class=\"js-toc toc\">\n<p class=\"js-toc-title toc__title\">Table of Contents<\/p>\n<nav id=\"fac_toc_nav\" class=\"js-toc-nav toc__nav\" aria-label=\"Table of Contents\"><ol class=\"toc__list toc__list--level-1\"><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-1\" href=\"https:\/\/preproduction.factorialhr.com\/blog\/exempt-vs-non-exempt-employees\/#exempt-vs-non-exempt-employees\" title=\"Exempt vs non-exempt employees\u00a0\" data-target-id=\"exempt-vs-non-exempt-employees\">Exempt vs non-exempt employees\u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-2\" href=\"https:\/\/preproduction.factorialhr.com\/blog\/exempt-vs-non-exempt-employees\/#rules-for-exempt-vs-non-exempt-employees\" title=\"Rules for exempt vs non-exempt employees\u00a0\" data-target-id=\"rules-for-exempt-vs-non-exempt-employees\">Rules for exempt vs non-exempt employees\u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-3\" href=\"https:\/\/preproduction.factorialhr.com\/blog\/exempt-vs-non-exempt-employees\/#how-to-classify-exempt-vs-non-exempt-employees\" title=\"How to classify exempt vs. non-exempt employees\" data-target-id=\"how-to-classify-exempt-vs-non-exempt-employees\">How to classify exempt vs. non-exempt employees<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-4\" href=\"https:\/\/preproduction.factorialhr.com\/blog\/exempt-vs-non-exempt-employees\/#employee-classification-california\" title=\"Employee classification California\u00a0\" data-target-id=\"employee-classification-california\">Employee classification California\u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-5\" href=\"https:\/\/preproduction.factorialhr.com\/blog\/exempt-vs-non-exempt-employees\/#exempt-vs-non-exempt-employees-advantages-and-disadvantages\" title=\"Exempt vs non-exempt employees: advantages and disadvantages\" data-target-id=\"exempt-vs-non-exempt-employees-advantages-and-disadvantages\">Exempt vs non-exempt employees: advantages and disadvantages<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-6\" href=\"https:\/\/preproduction.factorialhr.com\/blog\/exempt-vs-non-exempt-employees\/#employee-classification-examples\" title=\"Employee classification examples\u00a0\" data-target-id=\"employee-classification-examples\">Employee classification examples\u00a0<\/a><\/li><\/ol><\/nav><\/div><\/b><\/p>\n<h2><b>Exempt vs non-exempt employees<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">According to the Fair Labor Standards Act, there are two types of employees. The primary difference between exempt and non-exempt employees relates to their eligibility for overtime:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Exempt employees<\/b><span style=\"font-weight: 400;\">: An employee who you class as being exempt from the overtime provisions of the Fair Labor Standards Act (FLSA), such as executive, professional, and administrative roles.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Non-exempt employees<\/strong>: An employee who you do not class as being exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) and who you, therefore, must pay overtime when they work over their contracted hours.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To determine if your employees should be classified as exempt or non-exempt, you need to consider the following factors:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>How much<\/strong> you pay them<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The <strong>type of work<\/strong> you have contracted them to do<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The <strong>specific responsibilities<\/strong> and job duties that you assign to them<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Aside from the rules for exempt vs non-exempt employees detailed in the FLSA, there might also be laws in your state that impact the criteria you use to classify your employees. For example, California has additional requirements in order to qualify as exempt, as we will see later in this guide.<\/span><\/p>\n<h2><b>Rules for exempt vs non-exempt employees\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The rules for exempt vs non-exempt employees are established by <\/span><a href=\"https:\/\/factorialhr.com\/blog\/usa-federal-employment-laws\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">US federal employment laws<\/span><\/a><span style=\"font-weight: 400;\">. You need to make sure you are clear about all the guidelines so that you correctly classify all your employees and pay them overtime when legally required to do so.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s take a look at the rules for exempt vs non-exempt employees in a bit more detail.<\/span><\/p>\n<h3><b>Non-exempt employees<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Employees are considered non-exempt unless they qualify for an exemption under federal and\/or state law. We will look at what qualifies as an exemption in the next section. However, generally speaking, you should classify an employee as being non-exempt if you:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pay them <strong>less than $35,568<\/strong> per year<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pay <strong>by the hour<\/strong><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Do not<\/strong> contract them to perform <strong>exempt job duties<\/strong> (detailed in the next section)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Under federal law, <strong>you must pay minimum wage plus overtime for any hours non-exempt employees work over their established schedule<\/strong>. For example, if you usually pay a non-exempt employee for 10 hours of work per week but they work 12, they are entitled to an additional two hours of pay. You must also pay overtime at 1.5 times an exempt employee\u2019s regular pay rate if they work more than 40 hours a week. There may also be <strong>additional overtime laws in your state<\/strong> that go beyond these FLSA guidelines, for example, if you live in California. Make sure you check your local regulations to ensure compliance.<\/span><\/p>\n<h3><b>Exempt employees<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The Fair Labor Standards Act does not protect exempt workers from overtime. This is because they are considered salaried workers and you contract them for the job they do rather than the number of hours it takes them to do it. And this means that you are not obligated to pay them overtime if they work over their contracted hours in a given week.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Generally speaking, you should classify an employee as being non-exempt if you:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pay them <strong>more than the FLSA exempt minimum<\/strong> ($35,568 annually, although this may vary by state)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pay on a <strong>salary basis<\/strong><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Contract them to <strong>perform exempt job duties<\/strong> (such as executive duties, administrative duties, outside sales duties, or learned\/creative\/computer professional duties)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Exempt status is best if you are hiring office workers because there is no limit to the hours that an employee can work in a given pay period for the salary you pay them. However, you must make sure that the job they are performing meets all the above criteria.\u00a0<\/span><\/p>\n<h2><b>How to classify exempt vs. non-exempt employees<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When it comes to employee classification, you need to make sure you establish <strong>clear processes<\/strong> for identifying exempt and non-exempt employees. Aside from your legal obligation, it will also have an effect on a number of your internal processes. For example, it will impact how you process <\/span><a href=\"https:\/\/factorialhr.com\/blog\/setting-up-payroll-for-small-business\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">payroll<\/span><\/a><span style=\"font-weight: 400;\">, how you manage <\/span><a href=\"https:\/\/factorialhr.com\/blog\/unpaid-time-off\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">unpaid time off<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/factorialhr.com\/blog\/pto-requests\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">PTO requests<\/span><\/a><span style=\"font-weight: 400;\">, the method you use to track employee hours (such as using an <\/span><a href=\"https:\/\/factorialhr.com\/blog\/excel-timesheet\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Excel timesheet<\/span><\/a><span style=\"font-weight: 400;\"> to comply with FLSA timekeeping requirements for non-exempt employees) and the various criteria you use for different <\/span><a href=\"https:\/\/factorialhr.com\/blog\/leave-of-absence-types\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">leave of absence types<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the FLSA, there are three basic tests you can perform to determine whether an employee should be classified as exempt or nonexempt:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Salary level test<\/b><span style=\"font-weight: 400;\">: Are you paying an employee more than $35,568 per year?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Salary basis test<\/strong>: Do you offer them a guaranteed minimum compensation amount, regardless of the hours they actually work?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Duties test<\/strong>: Have you contracted them to perform an exempt job duty? (Professional duties that require specialized education; executive duties such as supervising a team; or administrative duties such as supporting operations for significant matters that require the use of discretion and judgment)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">There may be some exemptions to these rules, depending on an employee\u2019s profession or your company\u2019s industry or pay structure. Visit the <\/span><a href=\"https:\/\/www.dol.gov\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Department of Labor website<\/span><\/a><span style=\"font-weight: 400;\"> for more information. There are also certain states, like California, that impose additional requirements to qualify for exempt status.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/get-started\"><img decoding=\"async\" class=\"alignnone wp-image-86534\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/11\/18144227\/bENG_Blog_banner_900x308_A_v1.0-300x103.png\" alt=\"\" width=\"705\" height=\"242\" srcset=\"https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2022\/11\/18144227\/bENG_Blog_banner_900x308_A_v1.0-300x103.png 300w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2022\/11\/18144227\/bENG_Blog_banner_900x308_A_v1.0-1024x350.png 1024w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2022\/11\/18144227\/bENG_Blog_banner_900x308_A_v1.0-768x263.png 768w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2022\/11\/18144227\/bENG_Blog_banner_900x308_A_v1.0.png 1350w\" sizes=\"(max-width: 705px) 100vw, 705px\" \/><\/a><\/p>\n<h2><b>Employee classification California<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">California&#8217;s overtime exemptions are similar to those established by the federal Fair Labor Standards Act (FLSA). However, there are several <strong>important differences<\/strong> that you need to be aware of if your company is based in the Sunshine State.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under the FLSA, you must pay your non-exempt employees 1.5 times their regular rate for all hours worked over forty hours in a single workweek. This is also true in California, but there are additional requirements that you must follow in order to comply with <\/span><a href=\"https:\/\/factorialhr.com\/blog\/california-employer-laws\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">California employment laws<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>California laws entitle virtually all hourly employees to overtime pay<\/strong>. For example, California Labor Code section 510 outlines that employers must pay the following rate of overtime for any non-exempt employee that works over:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Eight hours in a workday: Time and a half (1.5x standard pay)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Forty hours in a workweek: Time and a half<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Twelve hours in a workday: Double pay (2x standard pay)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Eight hours on the seventh consecutive day in a workweek: Double pay<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">California also has its own rules for distinguishing between exempt vs non-exempt employees. In order to classify an employee as being exempt from overtime pay, you must:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pay them a salary that is twice the minimum wage for full-time employment in California.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Contract them to work primarily (more than 50% of the time) in an executive, administrative, or professional capacity.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If one of your employees meets these requirements, then you are not obligated to pay them overtime.\u00a0\u00a0<\/span><\/p>\n<h2><b>Exempt vs non-exempt employees: advantages and disadvantages<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When it comes to exempt vs non-exempt employees, there are advantages and disadvantages to hiring both categories of employees.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s take a look at some of the most obvious pros and cons of each employee classification.<\/span><\/p>\n<h3><b>Advantages exempt employees<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You pay them a <strong>set pay rate<\/strong>. This means you don\u2019t have to calculate overtime if an employee works more than 40 hours in a week.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Employees feel more secure<\/strong> if they receive the same pay each pay period.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Exempt employees tend to be <strong>more qualified and experienced<\/strong> which is a great asset for your business. If you\u2019re looking for highly skilled employees, then hiring exempt employees is the best strategy.<\/span><\/li>\n<\/ul>\n<h3><b>Disadvantages exempt employees<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Exempt employees are <strong>less likely to be as motivated to work after-hours<\/strong> since they get paid a fixed amount.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If you misclassify a non-exempt employee as exempt, you <strong>risk causing financial harm<\/strong> to your company.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You <strong>can\u2019t deduct pay for hours not worked.<\/strong> This makes it difficult to manage employees who might be working fewer hours than contracted.<\/span><\/li>\n<\/ul>\n<h3><b>Advantages non-exempt employees<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If you only hire non-exempt employees and pay all employees overtime, there is <strong>little risk<\/strong> of <strong>overtime non-compliance<\/strong>.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Unlike exempt employees, you can pay your non-exempt employees on an hourly or a salaried basis. This gives you much more <strong>flexibility with your wage structure<\/strong>.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Offering overtime can be a <strong>great incentive<\/strong> to get your employees to work longer hours.<\/span><\/li>\n<\/ul>\n<h3><b>Disadvantages non-exempt employees<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If non-exempt employees repeatedly work longer hours, then it can get <strong>quite expensive<\/strong>. It\u2019s important to identify when overtime is really required.\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Non-exempt employees tend to be<strong> less experienced<\/strong>. Plus, they require supervision so they are less likely to be able to work autonomously and use their initiative.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b>Employee classification examples<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here are a few examples of exempt vs non-exempt employees to help you understand where your employees might fall.<\/span><\/p>\n<h3><strong>Exempt employees examples<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">As we already discussed, the FLSA recognizes three main categories of exempt workers: <strong>executive, professional and administrative<\/strong>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Put simply, this means that if your employees perform relatively high-level work, then they are likely to be exempt employees. And this means that you have no obligation to pay them overtime. Remember, though, it\u2019s all about the tasks they perform, not their job title. Make sure you conduct a thorough job analysis for each employee before classifying their employment status.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are some examples of exempt employees based on this classification:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Administrative employees<\/b><span style=\"font-weight: 400;\"> who provide support services to production and operations staff. This includes your HR team, accounting, legal, public relations, compliance, finance, payroll and other related roles.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Executive staff<\/strong>, including your CEO, managers, supervisors and other employees who play a decision-making role in your organization.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Professional employees<\/strong>, including doctors, lawyers, licensed engineers, registered nurses, dentists, architects, teachers and other roles that require advanced education.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Creative professionals<\/strong>, including writers, actors, musicians, journalists, artists and composers.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Externals sales<\/strong> reps and marketers.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>IT-related positions<\/strong>, including computer programmers, software engineers and systems analysts.<\/span><\/li>\n<\/ul>\n<h3><strong>Non-exempt employees examples<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Finally, when it comes to distinguishing between exempt vs non-exempt employees, a clear indicator is <strong>whether you pay them by the hour<\/strong>. For example, this might include servers, retail staff, and customer service representatives, among other roles. Basically, any position that takes direction from supervisors and does not have an established work schedule.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you hire any non-exempt employees, then make sure you pay them overtime when they work additional hours. That way you can rest assured that you are legally compliant. And this is the best way to create the right environment to build a happy and productive workforce. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As an employer or human resources manager, you have a legal duty to properly classify each and every employee that you hire. This means determining whether or not they are exempt vs non-exempt employees under FLSA guidelines. Failure to do so can result in hefty fees and penalties. However, this is not always as easy<a href=\"https:\/\/preproduction.factorialhr.com\/blog\/exempt-vs-non-exempt-employees\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":80,"featured_media":81657,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[348],"tags":[],"class_list":["post-81653","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-culture-engagement-2"],"acf":{"topics":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Essential guide to exempt vs non-exempt employees | Factorial<\/title>\n<meta name=\"description\" content=\"How to identify exempt vs non-exempt employees and determine who you are legally obligated to pay overtime to. 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