Our Exempt/Non-Exempt Analyzer makes it easy to determine whether an employee is classified as exempt or non-exempt under the Fair Labor Standards Act (FLSA), helping you avoid legal issues and ensure compliance.
Why do I need this?
Accurate employee classification is crucial to avoid costly penalties and ensure your business remains compliant with FLSA regulations. Misclassifying employees can lead to significant fines from the IRS or Department of Labor, back wages, and other operational disruptions. The Exempt/Non-Exempt Analyzer simplifies this process, guiding you through the necessary steps and generating a detailed classification report so you can feel confident in your decisions.
How it works
1. Enter Employee Info:
Start by inputting basic information about the employee, such as their job title, key responsibilities, salary, and working hours. The Exempt/Non-Exempt Analyzer uses this data to assess how the employee fits into the FLSA criteria.
2. Automated Analysis:
Once you've entered the information, the tool runs an automated analysis against FLSA standards to determine the correct classification—whether the employee should be categorized as exempt (not eligible for overtime) or non-exempt (eligible for overtime pay).
3. Receive Your Report:
After the analysis is complete, you’ll receive a detailed report that confirms the employee’s classification. The report also explains the reasoning behind the classification based on the FLSA criteria, providing you with clear documentation to support your decision.
Benefits
Avoid Legal Fines and Penalties: Correct classification helps you stay compliant and avoid expensive fines from the IRS and Department of Labor.
Prevent Wage and Benefit Issues: Misclassifying employees can lead to back pay obligations and benefit adjustments—our analyzer helps prevent these costly mistakes.
Minimize Disruptions: Compliance challenges and audits can disrupt business operations. Using the analyzer reduces the risk of legal disputes, helping you stay focused on your core business.
Protect Your Reputation: Proper employee classification demonstrates your company’s commitment to compliance and fairness, helping maintain employee trust and protecting your company’s reputation.
How to Access
The Exempt/Non-Exempt Analyzer is part of the Hiring Docs module. Existing customers can access it at no additional cost, and new customers can find it as part of the Employment bundle.