Free Decision Tool for Startups
Exempt vs Non-Exempt Checker
Quick answer: Exempt vs Non-Exempt Checker is a free browser-based tool for startup teams. Determine if a role should be classified as exempt or non-exempt under the Fair Labor Standards Act. Free FLSA classification tool. It provides an educational starting point and does not replace advice from a qualified HR, tax, payroll, or employment professional.
No signup required | Built by TalentForge360 LLC
How It Works
- Step 1: Answer questions about the role: salary level, duties, supervisory authority, and professional requirements.
- Step 2: The checker applies federal FLSA tests: Salary Basis Test, Salary Level Test, and Duties Test.
- Step 3: Get a classification (Exempt or Non-Exempt) with the specific test results.
- Step 4: Receive state-specific notes if applicable (California, New York have higher thresholds).
Methodology & Data Sources
Classification follows the federal Fair Labor Standards Act three-part test: (1) Salary Basis (paid a fixed salary, not hourly), (2) Salary Level (at least $684/week or $35,568/year as of 2026), and (3) Duties (executive, administrative, professional, computer, or outside sales). California and New York have higher salary thresholds.
Sources & References
Key Terms & Definitions
Exempt Employee
An employee who is exempt from overtime pay requirements under the FLSA. Must meet all three tests: salary basis, salary level, and duties.
Non-Exempt Employee
An employee who must receive overtime pay (1.5x regular rate) for hours worked over 40 in a workweek. Most hourly workers are non-exempt.
FLSA
The Fair Labor Standards Act, the federal law governing minimum wage, overtime, child labor, and record-keeping for US employers.
Related Tools
These free tools work together with the Exempt vs Non-Exempt Checker:
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W-2 vs 1099 Contractor Risk Checker
Check your risk of misclassifying independent contractors.
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Startup HR Compliance Checklist
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Salary Range Builder
Create a formal compensation band around your target salary.
Frequently Asked Questions
What is the federal exempt salary threshold?
As of 2026, the federal minimum salary for exempt status is $684 per week ($35,568 per year). California requires $66,560 per year (2x minimum wage). New York requires $1,124.20 per week.
Can a salaried employee be non-exempt?
Yes. Salary basis alone does not make an employee exempt. The employee must also meet the salary level test and the duties test. Salaried non-exempt employees are entitled to overtime.
What are the FLSA duties tests?
The five categories are: Executive (supervises 2+ employees), Administrative (office/non-manual with independent judgment), Professional (advanced knowledge), Computer (IT/programming), and Outside Sales (regularly works away from office).
What happens if I misclassify an employee?
Employers owe back overtime pay for up to 2-3 years, plus liquidated damages and attorney fees. The DOL can also impose civil penalties. State agencies may pursue separate claims.
About StartupHRTools.com
StartupHRTools.com provides 16 free interactive HR tools for startups hiring their first 1-100 employees. All calculators, generators, checklists, and compliance guides run in your browser with no signup required, no data stored, and no paywall.
Built by TalentForge360 LLC, a 100% US-based company. Our tools are designed by HR professionals for founders and small teams who need practical HR guidance without enterprise software complexity.
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