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All posts by Hillary Anderson

Worker Classification

Human Resources: Are you classifying your employees correctly?

If you’re not sure, we’ve broken it down for you so you’ll never have to second guess yourself again!

There are a number of ‘employee classifications’ as summarized below. Bear in mind that we often refer erroneously to 1099’s or independent contractors as employees or a class of employees which they are not! As their name suggests – they are independent contractors not employees and this distinction is critically important to you.

  1. Full-Time Regular Employees – these are employees that are hired to work your company’s normal, full-time work week of 30 hours or more on a regular basis. Such employees may be exempt or non-exempt as defined below.
  2. Part-Time Regular Employees – employees hired to work fewer than 30 hours per week on a regular basis. These employees, as well, may be exempt or non-exempt as defined below.
  3. Temporary Employees – Engaged to work full-time or part-time with the understanding that their employment will be terminated upon completion of a project or assignment. These employees
    may be exempt or non-exempt. A temporary employee may be offered a new position within the company and still retain temporary status.
  4. Non-Exempt Employees – these are employees who are required to be paid a minimum wage and overtime at the federal, state or local published wage rate – whichever is higher. Non-exempt employees are required to complete and provide accurate records of their hours worked.
  5. Exempt Employees – Employees who are not eligible for overtime and in most cases, not subject to minimum wage regulations. Common examples of exempt employees are executives, professional employees, outside sales reps, commissioned inside sales reps and certain computer professionals and employees in some administrative positions.
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