Associate Professional in Human Resources Training Practice Exam 2025 – Comprehensive All-In-One Guide to Exam Success!

The classification of an employee as exempt or non-exempt primarily hinges on the employee's job functions and duties. This distinction is crucial because it is the nature of the work performed—such as the level of responsibility, decision-making authority, and the type of tasks assigned—that directly aligns with the Fair Labor Standards Act (FLSA) criteria for exemption.

Exempt employees are usually those who engage in executive, administrative, professional, outside sales, or certain computer-related roles, which involve a higher degree of responsibility and independent judgment. Conversely, non-exempt employees are typically hourly workers or those performing labor that does not require such autonomy and are entitled to overtime pay.

While the other factors—such as the number of hours worked, the industry type, and salary levels—can play roles in job classification, they do not solely determine the exempt status under the law. For instance, an employee can work a significant number of hours but still be classified as non-exempt if their job duties do not meet the criteria for exemption. Likewise, different industries may have varying practices, but the specific job functions and duties remain the fundamental criterion for classification. Therefore, focusing on the functions and duties provides a clear understanding of the employee's status regarding exemption under the F