Ace the Certified Staffing Pro Exam 2026 – Level Up Your Recruitment Game!

When a client indicates that a position is exempt, it typically means that the employee in that role is not entitled to overtime pay under the Fair Labor Standards Act (FLSA) due to meeting specific criteria related to salary and job duties. However, even for positions considered exempt, there can be circumstances in which the employer may still be liable for unpaid overtime if the job does not fully meet the exemption criteria.

If an employee is misclassified as exempt when they should be classified as non-exempt, they could be entitled to overtime compensation for hours worked over the standard 40-hour workweek. Misclassification can occur if the employee does not perform the duties that meet the exemption criteria or does not earn the required minimum salary threshold.

Recognizing that the client has designated the position as exempt does not eliminate the firm’s exposure to potential liability for overtime claims if the classification is found to be incorrect. Thus, understanding the nuances of exempt versus non-exempt classifications is crucial for compliance and for avoiding potential financial ramifications related to unpaid overtime.