employee classification

Exempt vs. Nonexempt

Employee classification is highly litigated and the distinction between exempt and nonexempt is critical. With the federal law increasing the salary threshold for exempt employees to $47,476 beginning December 1, 2016, employers must either give current salaried employees a raise or reclassify their position.

What is the difference between nonexempt and exempt employees? The main differences are how they are paid and job duties.