As a small business employer, do you know when you are or aren’t required to pay an employee overtime pay or minimum wage?  Do you have employees that are ineligible for overtime pay solely based on their job title?  Exempt employees are certain classifications of employees that are exempt from overtime pay and/or minimum wage, and are often considered to be “white collar” workers.  However, the rules for determining an employee’s exempt status can be complex, and are much more involved than just determining if an employee is a white collar or office worker.    An employee’s job title has very little to do with their status as an exempt or non-exempt employee.  Misclassifying an employee as exempt from overtime and/or minimum wage could leave your small business liable for thousands of dollars in back wages owed or exposed to potential litigation.

The various exempt classifications and related record-keeping provisions are set by the federal Fair Labor Standards Act (FLSA) and Colorado state laws.  Within those classifications, such as Professional, Executive, and Administrative, certain tests must be met in order for an employee to be classified as Exempt.  Those tests can include job duties, employee’s level of discretionary authority, employee’s supervisory responsibilities, etc. 

As your payroll specialists, Payroll Vault offers a robust Human Resources service that will help you navigate the complex rules regarding exempt vs. non-exempt employees.  Call us today at (970) 353-0170 for information on how we can help you with this important issue.


Allyson Rodahl, CPP
Payroll Vault of Weld County
(970) 353-0170