All pay concerns & resources

Pay Concerns / U.S. guidance

Exempt vs. nonexempt

Job duties and the applicable tests matter—not just a title.

What does it mean?

Nonexempt employees are generally entitled to FLSA minimum-wage and overtime protections. Exempt means a specific exemption applies. For many executive, administrative and professional exemptions, duties, salary basis and salary level tests all matter.

What to pay attention to

Being salaried or called “manager” does not by itself establish an exemption. DOL currently lists a standard federal salary threshold of $684 per week for these exemptions; some categories have different tests or no salary threshold. State rules may be more protective.

Where to go next

  1. 1

    Write down your actual duties, decision-making and how pay is calculated.

  2. 2

    Read the relevant DOL exemption fact sheet and your state’s guidance.

  3. 3

    Ask DOL/WHD, the state agency or a qualified employment attorney to assess the applicable tests. CCS does not classify you.

Sources & dates

CCS content reviewed October 7, 2026. A review date is not a law’s effective date. Where a source has no single effective date, it is labeled as reference guidance. Open the official source for updates.

Explore the Compensation Knowledge Base →