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Measuring Overtime Exemption Status: A Task-Based Approach

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  • Kevin Rinz

Abstract

This paper introduces new measures of the overtime exemption status of individual tasks measured by O*NET. Task-based measures reveal that about 60 percent of salaried workers are in occupations in which either all or no O*NET tasks are exempt. While workers with higher earnings tend to be employed in occupations in which a larger share of tasks are exempt, there is substantial variation in exempt task shares across occupations at all levels of earnings. The task content of job ads shows a similar pattern. Incorporating task-based exemption measures into extensions of prior work reveals that workers in high-exemption occupations were more likely to transition out of salaried jobs affected by changes to state overtime rules, and managerial jobs just above the federal salary level test threshold have exempt task content similar to those just below it.

Suggested Citation

  • Kevin Rinz, 2026. "Measuring Overtime Exemption Status: A Task-Based Approach," Working Papers 26-15, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwq:103568
    DOI: 10.26509/frbc-wp-202615
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    References listed on IDEAS

    as
    1. Simon Quach, 2025. "Wage Hysteresis and Entitlement Effects: The Persistent Impacts of a Temporary Overtime Policy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 140(2), pages 1633-1680.
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    More about this item

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy

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