What Is an Unclassified Employee?

by Diane Stevens

The terms "classified" and "unclassified" employee refer to the federal Fair Labor Standards Act. Typically classified workers are paid hourly, with the FLSA setting standards on the minimum hourly wage and the overtime rate of 1 1/2 times the hourly rate if the employee works more than 40 hours per week. Unclassified employees are typically salaried employees. However, these are broad definitions.

Classified Employees

Classified employees are sometimes called "blue collar" workers, named after the blue denim work shirts that laborers often wore. Any employee who doesn't fit into the unclassified category is automatically defined as a classified employee. Classified employees usually are paid an hourly rate, and their job duties are routine -- following a specific set of standards and rules. Examples of classified employees are maintenance and construction workers, clerical staff and technicians. An employer must be careful when defining a worker's status by examining the job requirements against FLSA standards. Job duties, not job titles, differentiate classified from unclassified employees. For example, a garbage man could be called a waste management administrator, but because his job duties are routine and standard, he is a classified employee.

Unclassified Employees

Unclassified employees are sometimes called "white collar" workers, named after the white dress shirts often worn with a business suit. They are typically company executives, administrators, outside sales representatives and professionals, earning a salary or commission versus an hourly wage. With a few exceptions, an unclassified employee must still earn at least $455 per week, the federal minimum for executive, administrative and professional employees exempt from the FLSA, as of 2012. He also must be paid his full salary every week, no matter how many hours he worked.

Types of Unclassified Workers

Under the FLSA, unclassified job duties generally fall into one of three categories: executive, professional or administrative. An employee is considered an executive if his job description includes managing two or more employees, the primary job function is management, and his feedback can affect other employees, such as hiring, firing or promoting. Professional positions usually are jobs that require a specific type of education or licensing such as lawyers, teachers, accountants, doctors and scientists. An administrative position that qualifies as unclassified requires the employee to be capable of making independent decisions. Positions in finance, human resources, accounting, computer administration and marketing are examples of these positions.

No Classification

There are some positions that are specifically excluded from being defined as unclassified or classified. For example, agricultural workers aren't covered under FLSA overtime rules. Railroad workers are covered by the Railway Labor Act, and truck drivers are covered by the Motor Carriers Act.

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