Some employees need to be paid overtime… but who? And why? Their exemption status (that is, exemption from earning overtime pay) depends on job duties, pay structure, timekeeping, and more besides. The only thing it’s not about is the job title. That said, these examples can help visualize the difference between exempt vs non-exempt employees in a health, dental, or veterinary setting.
4 Employees Who Are (Probably) Exempt
Employees in this category are most likely earning a salary, and that salary must meet the non-exemption threshold. They might work regular hours, but they don’t have to track their time because overtime just isn’t a thing for them.
- Doctors and associates. Whether that doctorate is a DDS, CD, OD, or DVM, these patient care providers are considered learned professionals and are therefore exempt from overtime. They may get a salary, a percent collection, or some other combination of compensation.
- Nurse practitioners and physician’s assistants. Advanced nurse practitioners who work on a salary are also learned professionals, and they make clinical judgment and treatment decisions. Their autonomy gives them exemption status. These team members are exempt in most cases, but not always, so double check your state’s guidelines to be sure.
- Office managers or practice administrators. Management is right there in the name. They are almost always exempt because they have administrative duties and have a hand in business matters.
- Billing or financial managers. Someone who handles your practice’s revenue has decision-making authority about your practice’s financial processes. If this was a billing clerk who did not make decisions and worked hourly, they’d probably be non-exempt.
4 Employees Who Are (Probably) Non-Exempt
Non-exempt employees usually work hourly, they don’t have supervisory duties, and they track their time. Their work is manual, technical, or they provide a service. Their workload doesn’t pile up because their job needs to be done at a specific time in a specific place. There are exceptions to all of those points, of course, but those baselines should help you spot the difference between exempt vs non-exempt employees.
- Registered dental hygienists. Even though they’re licensed and skilled, their work doesn’t meet the independent judgment standard the way a dentist would. In this case, it’s not just about licensure, but more about decision-making.
- Nurses. This is the grayest area. We mentioned nurse practitioners in the exempt category, but if you have an RN or LPN who works hourly, they are probably non-exempt. This is because they’re following standardized procedures and physician’s orders. If that changes and they have more autonomy, they might be exempt.
- Front desk coordinators. Receptionists, schedulers, and front desk employees have clerical work without management duties, so they’re pretty clearly non-exempt. Don’t confuse these employees for computer professionals even though their work happens on a screen.
- Lab technicians. This can include sterilization techs, kennel attendants, or other workers who have a hands-on technical job. They spend their days executing tasks and following procedures, not making executive decisions.
Bonus! 2 Workers Who Are (Probably) Independent Contractors
This one can be tricky, and misclassification is a common mistake. Expensive, but common. Don’t mistake employees for contractors — that kind of mistake can get you tangled up with both the Department of Labor and the IRS.
- Visiting specialist. If this specialist was on your regular rotation, they’d be an exempt employee. But if they’re a specialist who comes in to take on specific cases, they’re not. Someone who runs their own show and comes in for specialty support is most likely an independent contractor.
- Outsourced IT support. For most small practices, these professionals are hired to handle a specific task, like fixing your x-ray machine or helping with cybersecurity. They don’t work like an employee, and when the work’s done, they move onto the next client. That makes them an independent contractor.
HR for Health Can Help
Got the hang of exempt vs non-exempt employee status? Well, even if not, HR for Health provides all the tools, learning resources, and human support you need to keep your practice compliant – and that includes helping you identifying if someone is exempt or not.
We know your practice’s pay structures and job duties aren’t so clearly defined. We also know that overtime is basically a daily occurrence. That’s why we help you with all the employee documentation you need, plus tools for time and attendance tracking, payroll syncs, and overtime alerts.
Want to see how it works? Get a demo of the HR solution built specifically for health and dental practices.
