A salaried worker is not automatically exempt. For many executive, administrative, and professional exemptions, federal rules require salary-basis, salary-level, and duties tests to be satisfied.
Exempt vs non-exempt in plain English
Under the federal Fair Labor Standards Act, a non-exempt employee is generally covered by the Act's minimum-wage and overtime requirements. An exempt employee falls within a specific exemption from one or more of those requirements.
The words exempt and non-exempt describe legal classification under applicable wage-and-hour rules. They are not simply synonyms for salaried and hourly.
The biggest practical difference: overtime eligibility
Covered non-exempt employees generally must receive overtime pay at least one and one-half times the regular rate for hours worked over 40 in a workweek under the federal FLSA.
Employees who properly qualify for an applicable overtime exemption are not entitled to that federal overtime requirement under the exemption. State laws can provide additional or more protective rules.
Salary alone does not make someone exempt
For the common executive, administrative, and professional exemptions, the Department of Labor generally applies salary-basis, salary-level, and duties tests. A job title or the fact that a worker receives a salary is not enough by itself.
As of October 22, 2026, the Department of Labor is applying the 2019 federal salary level of $684 per week for most executive, administrative, and professional exemptions after the 2024 rule was vacated. In May 2026, DOL issued a technical amendment restoring the operative 2019 regulatory text.
Exempt vs non-exempt comparison
This table summarizes the general federal concepts. Specific exemptions, occupations, and state rules can differ.
| Topic | Non-exempt | Exempt under an applicable FLSA exemption |
|---|---|---|
| Federal overtime | Generally eligible after 40 hours in a workweek | Exempt from the covered overtime requirement if the exemption applies |
| Pay method | Can be hourly, salary, piece rate, or other permitted methods | Many EAP exemptions require salary or fee basis; some exemptions use different rules |
| Duties test | No EAP exemption required | Duties must satisfy the specific exemption |
| Salary threshold | Not required to be non-exempt | For many EAP exemptions, current federal salary level is generally at least $684/week |
| Job title | Does not control classification | Does not control classification |
What are the salary-basis and duties tests?
The salary-basis test generally requires a predetermined amount of compensation that is not reduced because of variations in the quality or quantity of work, subject to permitted deductions. The duties test examines the employee's actual primary duties.
Different exemptions have different requirements. Outside sales and certain computer employees, for example, have special rules. A single checklist cannot classify every worker.
Can a salaried employee be non-exempt?
Yes. An employee can be paid on a salary basis and still be non-exempt if an exemption does not apply. Salary is a pay method; exempt status is a legal classification.
That distinction is important when comparing salary and hourly compensation. Do not assume a salary eliminates overtime eligibility.
Can an hourly employee be exempt?
Many commonly discussed white-collar exemptions use salary-basis requirements, but federal rules include exceptions and special structures for certain categories. Classification should be checked against the exact exemption rather than inferred from the pay stub.
For a specific worker or disputed classification, consult the applicable federal and state rules or a qualified professional.
Use calculators only after classification is known
The Overtime Pay Calculator and Time and a Half Calculator perform pay arithmetic from the inputs you provide. They do not determine whether an employee is legally non-exempt or whether a particular exemption applies.
For the calculation method itself, see How to Calculate Overtime Pay.
Continue with a calculation