Published on June 4th, 2023
In the United States, there are two classifications for employees: exempt and non-exempt. The main difference between the two is overtime pay eligibility. Exempt employees are not entitled to overtime pay whereas non-exempt employees are. As a recruiter or hiring manager, it is important to know the difference between the two classifications and how to determine which one an employee falls under. In this blog post, we will discuss the criteria for exempt and non-exempt classifications and some helpful tips for properly categorizing your employees.
To be considered exempt, an employee must meet three criteria:
Non-exempt employees, on the other hand, are entitled to overtime pay. To be considered non-exempt, an employee must not meet one or more of the criteria for an exempt employee. For example, they may be paid an hourly wage instead of a salary, their salary may not meet the minimum level or their job duties may not primarily involve executive, administrative, or professional tasks.
Examples of non-exempt employees include customer service representatives, production workers, and hourly retail employees.
Determining an employee's classification can be tricky, but there are a few tips to help ensure accurate categorization.
EasySource revolutionizes the way recruiters search for non-exempt employees by introducing the world's first fully automated talent-sourcing tool. This innovative platform streamlines the process of building a robust talent pipeline, saving recruiters valuable time and effort. By leveraging advanced AI-based filters like location, skills, education, experience, and US work authorization, EasySource simplifies the task of finding relevant candidates with just a few clicks.
But that's not all. EasySource goes beyond traditional sourcing tools by incorporating ChatGPT and Generative AI capabilities. Recruiters can now effortlessly send highly personalized messages to potential candidates across various platforms, all with the power of automation. This means recruiters can amplify their LinkedIn search, discover and engage with promising non-exempt candidates, and bid farewell to the daunting task of sifting through countless resumes to find exceptional talent.
Properly determining employee classification is crucial for compliance with federal and state labor laws. By understanding the criteria for exempt and non-exempt employees and following some helpful tips, you can ensure that your employees are properly classified and compensated. Remember to review job descriptions, consider salary levels, track hours worked and seek legal advice when necessary. With these steps, you can confidently categorize your employees and avoid any legal issues down the line.
Radhika Sarraf
Radhika Sarraf is a content specialist and a woman of many passions who currently works at HireQuotient, a leading recruitment SaaS company. She is a versatile writer with experience in creating compelling articles, blogs, social media posts, and marketing collaterals.
Never Miss The Updates
We cover all recruitment, talent analytics, L&D, DEI, pre-employment, candidate screening, and hiring tools. Join our force & subscribe now!
Stay On Top Of Everything In HR