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Hiring · Guide + Word template

Worker Classification

Employee or contractor. Exempt or non-exempt. Two decisions that set pay, taxes, and overtime, and are expensive to get wrong.

In the 9-page guide

  • The two classification decisions
  • Contractor tests by state
  • The exemption tests
  • 2026 salary thresholds for CA, NY, IL, TX, and FL
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Classification Worksheet

A worksheet for one role that walks through both decisions, records your reasoning, and gets sign-off. Keep it with the job description.

Role details
Title, work location, and pay.
01 Employee or contractor
A factor-by-factor checklist, including California's ABC test.
02 Exemption analysis
Duties checklist for each common exemption.
03 Salary tests
Salary basis and level, compared to the state minimum.
04 Decision and reasoning
Your conclusion, in writing.
05 Review and sign-off
HR and legal counsel, with a date to revisit.
$59
Instant download · Always in your library · Review with your legal counsel before use
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Includes the guide PDF and editable Word template.
Also included in the First Hire Kit and the Everything Bundle. Need hands-on help? Talk to an HR professional.
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About this guide

What the Worker Classification guide covers

Employee or contractor. Exempt or non-exempt. Two decisions that set pay, taxes, and overtime, and are expensive to get wrong. Written for founders and hiring managers at small and growing companies, in plain language, with federal rules and state notes for California, New York, Illinois, Texas, and Florida.

The 9-page guide covers the two classification decisions; contractor tests by state; the exemption tests; 2026 salary thresholds for CA, NY, IL, TX, and FL. It comes with 1 editable Word template: Classification Worksheet. It is also part of the First Hire Kit.

Price: $59, one-time purchase, instant download. General guidance, not legal advice: review finished documents with your legal counsel.

Questions

Frequently asked

How do I know if a worker is a contractor or an employee?

It depends on who controls the work and whether the worker runs an independent business. California uses the strict ABC test for most purposes. The guide walks through the federal and state tests.

Does paying someone a salary make them exempt from overtime?

No. An exempt role must pass a duties test, be paid on a salary basis, and meet a minimum salary, which is higher in some states than the federal level.

Is this legal advice?

No. ModuleHire HR guides and templates are general guidance. Review anything that affects an employee with your legal counsel before you use it.

How do I get the files?

Right after checkout you get a download page and an email link. Everything you buy also lives in your library at hr.modulehire.com/library.html, so you can download it again any time.

Which states do the guides cover?

Guides on topics where state law matters, such as pay, leave, hiring, and terminations, include state notes for California, New York, Illinois, Texas, and Florida alongside federal rules.