I am having a discrepancy with my company owner if an inside sales manager is considered an exempt employee or not.

14 Comments

1. AnonymousJune 1,2025 at 12:25PM UTC

   I did a quick Google search on this. You can report any perceived non-exempt labor violations to the Division of Labor. The Fair Labor Standards Act (FLSA) protects non-exempt employees by requiring minimum wage and overtime pay. The Wage and Hour Division of the U.S. Department of Labor enforces the FLSA, and you can file a complaint if you believe your employer is not complying with these regulations.

   Please note your employer is not likely to be pleased if you go over their heads on this so you may want to consider exhausting all internal avenues before reporting them to your state or a federal agency.

   An employment attorney could likely also advise you on whether your role fits or doesn't fit within the guidelines.

2. Tammy Capone-CummingsJune 1,2025 at 4:58PM UTC

   I am comfortable with the Inside Sales Manager being exempt. The duties list published to determine exempt or non-exempt confirms the manager being exempt. I am amazed how leadership in many companies think you can just pick whatever status you like!

3. Dr. Patty GrossJune 1,2025 at 2:03PM UTC

   All I can say is, be careful what you wish for. I have seen companies too often switch an employee to an exempt position to avoid paying overtime. In fact, in Delaware, there were so many abuses of this that the state passed a law requiring exempt employees to be paid overtime for any hours worked beyond 40 hours per week. In these cases, benefits (PTO, medical, etc.) were essentially the same for exempt and non-exempt employees, so the issue was primarily overtime.

   Do you feel you need to access benefits that being non-exempt does not qualify you for? Are you looking for a more consistent paycheck because your hours fluctuate, or is there another reason? If you're working close to 40 hours with some decent overtime, you may end up losing more than you gain by going exempt.

4. AnonymousJune 1,2025 at 5:07PM UTC

   I think the OP may be in the HR or maybe Finance department instead of being non-exempt.

   But I agree, if you're trying to save the company from paying OT, this is one strategy.

5. Tammy Capone-CummingsJune 1,2025 at 4:53PM UTC

   Thank you for your feedback. I am the Human Resources Manager and I am trying to make a point about the Inside Sales Manager EXEMPT. The owner does not see that the Inside Sales Manager, who makes 70K a year, is still exempt even though he has no direct reports. It's more of a frustration with the owner and I know we could get in a lot of trouble classifying incorrectly He is very much my way or the highway type of guy.

6. AnonymousJune 2,2025 at 1:50PM UTC

   Research the relevant statutes, including those at the state and local levels, to determine if your company complies with labor laws.
   Another strategy is to consult with your company's legal counsel to determine if it could be problematic if an employee complains, especially if it denies the person certain benefits. The lawyer would perhaps have a better chance of changing the owner's mind or providing you with the ammunition you need to convince him. Sometimes you need to "circle the wagons."
   Is this a commission-only job? Is 70K an actual or projected income based on a 40-hour week, and is the projected job schedule 40 hours per week? These answers could make a difference.

7. AnonymousJune 2,2025 at 2:27PM UTC

   Do you want him to be exempt & the owner wants to leave him non-exempt? I don't think it's an issue if an employee is non-exempt & could be exempt. The issue is when they are made exempt but don't qualify. You're not going to get in trouble for paying them OT.

8. AnonymousJune 2,2025 at 5:16PM UTC

   See my response above I just posted. If this guy is labeled as non-exempt, this is not an issue. The issue comes up when an employee is considered exempt when in fact they are not.

9. AnonymousJune 1,2025 at 8:51PM UTC

   Research EEOC.

10. AnonymousJune 2,2025 at 1:49PM UTC

    It really depends on job description. There is no blanket title covered. You must look at role, responsibilities, hours worked and company revenue generation and others aspects. The EEOC and labor laws in your state can provide you with clearer guidance. It's not a one size fits all answer.

11. AnonymousJune 2,2025 at 2:23PM UTC

    It sounds like he qualifies to be exempt.

    Nonexempt Employees

    Nonexempt employees are typically paid by the hour; they must be paid at least the minimum wage and are automatically eligible for overtime pay.

    Exempt Employees

    Exempt employees do not qualify for the minimum wage or overtime pay. For an employer to classify them as “exempt,” the employees must meet both of the following criteria:

    The employees must perform specific responsibilities in their job roles.

    Executive, Administrative or Professional (EAP) Employees

    Executive: Employees primarily engaged in managing the enterprise or a department

    Administrative: Employees performing office or non-manual work directly related to management policies or general business operations

    Professional: Employees in a field of science or learning requiring advanced knowledge

    Computer: Those engaged in computer systems analysis, programming or software engineering

    Highly Compensated Employees (HCEs): Employees earning above a specified threshold and performing office or non-manual work

    Employers must pay employees the minimum annual salary required by the FSLA.

    Teachers, practicing doctors and lawyers and academic administrative employees are not subject to the salary threshold.

12. AnonymousJune 2,2025 at 5:14PM UTC

    Okay - so sounds like he likely could be considered an exempt employee.

    This would be a helpful link for you: elaws - FLSA Overtime Security Advisor

    (if that doesn't show up as a link, I will try again...or good FLSA Overtime Security Advisor but maybe you are already familliar with this anyway)

    Not sure why someone suggested EEOC.

    Now, my question for you: is the individual currently categorized as exempt or non? Here's the thing: Basically any employee can be labeled as non-exempt, but there are certainly requirements that need to be met to make someone exempt. Are you all wanting to because he has tons of OT and you want to cut those costs? Or is there another motive at play here?

    In the end, if you are in doubt, I would strongly suggest you consult with an employment law attorney (I'm hoping that you already have one on standby).

    Now, with all that out of the way. Why are you

13. Kris WolframJune 2,2025 at 8:00PM UTC

    it depends on the JD and the scope of discretion in the job. If the employer is more of a worker and following directions, it would be non exempt. Always safer to pay hourly if there is a question.

14. AnonymousJune 2,2025 at 11:55PM UTC

    This is completely up to the job responsibilities, hours worked and leadership. There are very clear guidelines involved.