Exempt vs. Non-Exempt

Employment Classifications

All jobs are categorized by an employment classification determined by the Fair Labor Standards Act (FLSA). Learn more Georgia Tech Human Resources works within FLSA guidelines in evaluating the employment classifications of all staff and faculty positions. This takes place during the creation, back-filling, or reclassification of positions.

These classifications are based on several factors such as the actual job duties outlined in the job description, as well as the salary, among other things.

Exempt Employee 

  • Not eligible for overtime 
  • Must record exceptions to work (sick, vacation, jury duty, bereavement, etc.)  

Non-Exempt Employee 

  • Eligible for overtime 
  • Must record all hours worked in addition to absences
  • Non-exempt employees must be paid for all hours worked.
    Hours worked include all the time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace.
How is exemption determined?

Exemption is based on qualifying for all three of the following tests:

  • Salary Basis Test: Employee must be paid on an annual salary basis;
  • Minimum Salary Threshold Test: Employees must be paid above a salary threshold amount; and
  • Duty and Discretion Tests: Employee must qualify as an Executive, Administrator, Professional or Computer Professional