Exempt vs. Non-Exempt: Who Actually Qualifies for Overtime?
October 23, 2026
Per DOL guidance on FLSA exemptions, whether a US employee is entitled to overtime pay depends on whether they're classified as exempt or non-exempt — a classification based on specific job duties tests and a minimum salary level, not simply on being paid hourly vs. salaried.
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To be classified exempt from overtime, an employee generally needs to meet both a duties test (performing specific types of job functions, such as executive, administrative, or professional work as defined by DOL) and a salary level test (earning at or above a minimum threshold set by DOL regulation). Failing either test generally means the employee is non-exempt and entitled to overtime.
Why This Isn't a Simple Hourly-vs-Salaried Question
An employee can be paid a salary and still be non-exempt (and therefore entitled to overtime) if they don't meet the specific duties test — this distinction is covered in more detail in a dedicated article on salaried non-exempt employees elsewhere in this series.
Frequently Asked Questions
What determines whether a US employee qualifies for overtime?
FLSA exempt vs. non-exempt classification, based on a specific duties test and a minimum salary level test — not simply hourly vs. salaried pay.
What are the two main tests for exempt status?
A duties test (specific job functions like executive, administrative, or professional work) and a salary level test (a minimum threshold set by DOL regulation).
Can a salaried employee still be entitled to overtime?
Yes — if they don't meet the specific duties test for exemption, they can be salaried and still non-exempt, entitled to overtime.
Where can I find the official criteria for exempt status?
DOL's published guidance on FLSA exemptions at dol.gov.