Employment Status

An Employment Status policy defines how your organization classifies roles (e.g. full-time, part-time, temporary, exempt, and non-exempt) so employees understand how pay practices, overtime eligibility, and benefits apply under federal, state, and local rules.

How to Write an Employment Status Policy

• Start with "why" and introduce the concept.
• Explain that each employee has a job status category based on the nature of the role.
• Define the core job status categories your organization uses (for example, full-time, part-time, temporary).
• Explain that employees also have a wage-and-hour classification as exempt or non-exempt.
• Summarize what exempt means for pay treatment and overtime eligibility.
• Summarize what non-exempt means for pay treatment and overtime eligibility.
• Clarify that employment classification affects pay and benefits administration, not at-will employment status.
• State that classifications can change based on business needs or legal requirements, and employees will be informed of changes.
• Tell employees where to go with questions about their classification.

For advice on writing an Employment Status policy in a specific jurisdiction, see below.