In this module, you'll explore one of the most consequential decisions an organization makes about its workforce -- how workers are classified and why the label matters far more than most people realize. You'll examine the legal and financial risks of misclassification, the federal and state tests used to determine worker status, how those tests apply to real workplace scenarios, and how to correct classification errors when they occur. By the end of the module, you'll be prepared to identify the key factors that distinguish employees from independent contractors and understand why getting this determination right is foundational for anyone responsible for HR compliance.

In this module, you'll explore one of the most misunderstood areas of wage and hour law — how employees are classified as exempt or non-exempt and why that determination affects overtime eligibility, timekeeping, and legal risk. You'll examine the three tests that govern exemption status, the common pitfalls that lead to misclassification, and how to correct errors when they occur. By the end of the module, you'll be prepared to evaluate real roles against the legal criteria and understand why exemption is a legal determination, not an organizational preference.

This final module brings everything together. You'll review key concepts from the course and apply what you've learned to real-world workforce situations. By stepping back and looking across all three areas — wage and hour fundamentals, worker classification, and exempt versus non-exempt status — you'll strengthen your ability to analyze how legal obligations interact, where compliance risk lives, and how HR professionals translate rules into defensible decisions. These are skills that are essential for anyone working in HR, payroll, or people operations.