What Is Exempt vs. Non-Exempt?

The most important classification on your paycheck. It determines whether you are entitled to overtime pay or if your salary covers "all hours worked."

The Core Definitions

  • Non-Exempt: You are not exempt from FLSA rules. You **must** be paid minimum wage and overtime for hours over 40. Most hourly workers are non-exempt.
  • Exempt: You are exempt from overtime rules. You serve a specific high-level function (Executive, Administrative, Professional) and are paid a fixed salary regardless of hours worked.

The 2024/2025 Salary Threshold Change

To be classified as Exempt, you typically must meet a **Salary Basis Test**. In 2024, the Department of Labor significantly raised this threshold.

**New Threshold (July 2024):** ~$43,888 per year.
**Proposed (Jan 2025):** ~$58,656 per year.

If you earn *less* than this amount, you are automatically **Non-Exempt**, even if you are "salaried," and you are entitled to overtime pay.

Check Your Annual Salary

Equivalent Annual Salary
$52,000

Based on 40 hours/week for 52 weeks.

Monthly$4,333
Weekly$1,000

Calculation Breakdown

Precision Engine v1.0
Base Annual ( 40h × 52w )$52,000
Total Estimated Salary$52,000
Determination Engine

Deterministic Conversion Logic.

Unlike simple calculators, our engine uses high-precision decimal math to ensure that sub-cent rounding errors don't accumulate across yearly projections.

Rounding Preservation

Calculations are performed in 20-digit precision before final rounding to ensure strict financial accuracy.

Normalized Intervals

Monthly and bi-weekly figures are derived from the total annual projection to account for leap-year variances.