Exempt vs Non-Exempt:
Which are you?
Updated March 2026
Exempt employees get a salary with no overtime. Non-exempt get overtime pay at 1.5x after 40 hours. The classification is based on your job duties, not your title.
Your Situation
Average including weeks you work late
How this works
If you are non-exempt, hours over 40 per week are paid at 1.5x your regular rate. Exempt employees get no overtime regardless of hours worked.
Annual Pay (Non-Exempt)
$61,750
With overtime at 1.5x for 5hrs/wk over 40
Annual Pay (Exempt)
$52,000
Fixed salary, no overtime premium
Overtime Premium Per Year
$9,750
What you lose as an exempt employee vs non-exempt with 5 overtime hours per week
Weekly Pay (Non-Exempt)
$1,188
Regular + overtime
Effective Hourly Rate
$26.39/hr
Blended rate over 45 hours
What this means for you
Working 5 hours of overtime per week, being classified as non-exempt would earn you $9,750 more per year than being exempt at the same base rate. If you are regularly working these hours and your job duties do not clearly qualify for exempt status, it is worth reviewing your classification.
| Factor | Exempt | Non-Exempt |
|---|---|---|
| Overtime pay | None - ever | 1.5x after 40 hours/week |
| Pay structure | Salary (fixed) | Hourly or salary |
| Minimum salary (federal) | $35,568/year required | No minimum salary |
| Minimum wage protections | Not covered | Fully covered |
| Job duties test | Must pass executive/admin/professional/computer/outside sales test | Clerical, manual, and most non-supervisory roles |
| Record keeping | Employer rarely tracks hours | Employer must track all hours |
| Meal/rest breaks | Often flexible | Federal law requires breaks tracked |