The FLSA Duties Test determines which employees are exempt from overtime pay and minimum wage requirements. It evaluates job duties rather than just salary or job title to ensure compliance with labor laws. Employers must classify workers correctly to avoid legal issues.
To qualify as exempt, employees must meet specific requirements based on their job duties, responsibilities, and salary. If they don’t, they’re entitled to overtime pay for hours worked over 40 in a week.
What are the FLSA Duties Test requirements?
To be exempt from overtime under the FLSA, employees must meet three main criteria:
- Salary Basis Test – They receive a fixed salary that doesn’t change based on performance or hours worked.
- Salary Level Test – Their salary meets or exceeds the minimum set by the Department of Labor (DOL), which can change over time. Employers need to stay updated.
- Job Duties Test – Their primary job duties must fit into specific exemption categories, such as executive, administrative, or professional roles.
What are the exempt employee categories?
Under the FLSA, exempt employees typically fall into one of these categories:
- Executive – Manages a department or team, supervises at least two full-time employees, and has a say in hiring and firing decisions.
- Administrative – Performs office or non-manual work related to business operations and has decision-making authority in important matters.
- Professional – Requires advanced knowledge in a specialized field, such as medicine, law, engineering, or education.
- Computer Employee – Includes certain IT professionals like software engineers, computer programmers, and systems analysts who meet specific job duty and salary requirements.
- Outside Sales – Primarily makes sales outside the employer’s main workplace, such as field sales representatives.
What are the four main elements of the FLSA?
The FLSA protects workers through four key provisions:
- Minimum Wage – Sets the lowest hourly rate employers can pay. Some states require a higher minimum than the federal rate.
- Overtime Pay – Requires employers to pay 1.5 times an employee’s regular rate for hours worked beyond 40 in a week (applies to hourly employees).
- Child Labor Protections – Limits the types of jobs minors can do and how many hours they can work.
- Recordkeeping – Requires employers to track hours worked and wages paid to ensure compliance.
What job duties are considered exempt?
For an employee to be exempt, their primary duties must align with one of the FLSA exemption categories. These typically involve significant responsibility and decision-making. Some common exempt roles include:
- Supervisors – Lead teams, create schedules, and make hiring or firing decisions (Executive Exemption).
- Administrative Staff – Oversee business operations, make independent decisions, and handle key responsibilities (Administrative Exemption).
- Professionals – Apply advanced knowledge in specialized fields like medicine, law, or engineering (Professional Exemption).
- Tech and Software Developers – Design, develop, or analyze complex computer systems and programs (Computer Employee Exemption).
- Outside Sales Representatives – Travel, meet clients, and drive sales (Outside Sales Exemption).
Employers should carefully evaluate job duties to ensure proper classification. Misclassification can lead to legal trouble, fines, and back pay issues.
