Classify a Position as Exempt or Nonexempt
When to Use This Flowchart
Use the Classify a Position as Exempt or Nonexempt flowchart to determine if an employee is exempt or nonexempt from the minimum wage or overtime requirements of the Fair Labor Standards Act (FLSA).
An employer may be faced with the decision of how to classify employees when hiring an applicant for a newly created position, when an existing employee's duties have changed or when conducting a regular, recurring audit of FLSA practices or exposure.
Properly classifying employees can help reduce the risk of FLSA-related penalties, lawsuits or enforcement actions.
- Determine the employee's primary duty
- Is the employee paid on a salary basis?
- Is the employee an exempt commissioned salesperson?