How to Change an Employee's FLSA Status (Exempt vs Non-Exempt)

There are a handful of factors that determine an employee's FLSA status. This article explains how to change the status from exempt to non-exempt and vice-versa.

Why do I need to worry about my employee's FLSA status?

When running payroll, it's important to properly classify your employee's FLSA status. Doing so will dictate whether or not an employee needs to be paid overtime or not.

To learn more about FLSA status, you can visit this Department of Labor guide or this Department of Labor exemption overview.


How do I change an employee's exemption status in Eddy?

To change an employee's exemption status, you'll need to do the following:

1. Click into the employee's profile

2. Navigate to the "Job" tab of the employee's profile

3. Click on the "eye" icon on the "Compensation card

4. Click on the "edit pencil" icon for the current compensation


5. Next you'll select the "It's a new pay rate" option. (Even if it's not a new pay rate, this is the only way to update the exemption status, so select "It's a new pay rate."


6. Finally, you'll be able to select the exemption status when adding a new pay rate. For hourly workers, the exemption status will always be set to "non-exempt." For salaried workers, you are able to select whether you wish to set the employee to "exempt" or "non-exempt" by selecting the option beneath the pay rate.