What does "Worker Classification" mean?

Classifying workers is the responsibility of the employer. Essentially, it is congregation's determination of a worker's tax status and benefit plan eligibility. The Society for Human Resource Management (SHRM) writes that proper employee classification “make[s] sure that all legal requirements are maintained so that there is no discrimination in terms of benefit plan eligibility and payment of compensation in accordance with federal and state laws."

There are two kinds of worker classifications: Employee or Independent Contractor, and Exempt or Non-Exempt