Blog: Worker Classification

"Exempt" is not a compliment, a seniority marker, or a synonym for salaried. It is a narrow statutory carve-out from the Fair Labor Standards Act's minimum wage and overtime requirements, and the burden of proving it falls entirely on the employer. Exemptions are construed narrowly, which means a close call is generally decided against the employer.

This guide covers both tests every exemption requires, each recognized exemption and where it fails, the salary basis rules that can ...

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Worker Classification:
Remote Worker Taxation: Navigating Nexus Rules in 20265/11/2026

The tax consequences of remote work have settled into a stable but uncomfortable shape. The pandemic-era relief provisions that temporarily suspended nexus consequences are gone. What remains is the pre-existing law applied to a workforce distribution nobody designed for — and the pre-existing law is generally that an employee working in a state creates obligations in that state.

For payroll, this means the department has become the first line of detection for a company-wide tax ...

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Worker Classification:
Employee vs. Independent Contractor: The Definitive Classification Guide5/3/2026

Worker classification is the highest-stakes recurring decision in payroll. Get it wrong in one direction and you owe back employment taxes, unpaid overtime, benefit-plan contributions, penalties, and interest — potentially for years, across every similarly situated worker. Get it wrong in the other direction and you have simply overpaid, which no agency will ever tell you about.

The difficulty is that there is no single test. Federal wage law, federal tax law, and state law each ...

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