Which positions can be classified as' exempt employees'?

 How terrifying is the risk of employee misclassification？

According to California labor laws and FLSA requirements, exempt employees must simultaneously meet Salary threshold (the minimum annual salary for exempted employees in 2025 is $68640) and job responsibility test（Duties Test）。

Mistakenly classifying non exempt employees as exempt positions be faced with：

• Financial risk：3-year retroactive payment of unpaid wages+2x compensation+legal fees

• Goodwill risk：Collective litigation will lead to a decline in corporate credit ratings

• Regulatory risk：Key inspection targets of the Labor Bureau

1. Administrative Exemption

   Applicable positions: Director of Human Resources, Financial Manager, Compliance Supervisor, etc

   Job requirements: The main responsibilities involve business management, operational decision-making, and have independent decision-making power.

   
   

2. Executive Exemption

   Applicable positions: Regional Manager, Department Head, Chain Store General Manager, etc

   Job requirements: Manage at least 2 or more employees and have actual decision-making power over personnel recruitment, dismissal, or promotion.

   
   

3.  Professional Exemption
   Applicable positions: Lawyer, Architect, Engineer, Certified Public Accountant, etc
   Job requirements: Must engage in high skilled or professional technical work;
   
   

4. Computer Professional Exemption
   

   Applicable positions: System Architect, Senior Software Engineer, Senior Technician, etc

   Job requirements: Must engage in high skilled or professional technical work;

     5. Sales Exemption

         Applicable positions: Key account sales, regional business expansion

MEDI Service Support ： 

• Job compliance diagnosis: Accurately evaluate exemption qualifications based on salary structure and actual responsibilities；

• Legal document optimization: Revise labor contracts and employee manuals to ensure compliance with FLSA and California labor laws。