FLSA Employee Classification

What is the FLSA? 

The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor requirements for most employees in the United States. It is enforced by the U.S. Department of Labor’s Wage and Hour Division. 

Source: https://www.dol.gov/agencies/whd/flsa 

What Does Exempt vs. Non-Exempt Mean? 

Classification    Covered by FLSA Overtime Rules?    Eligible for Minimum Wage?    Key Criteria 

Non-Exempt:    

✅ Yes – must be paid overtime  

✅ Yes    Hourly or salaried but does not meet exemption tests 

Exempt:   

❌ No overtime required by FLSA    

❌ Not required Must meet Duties Test and Salary Basis Test under DOL 

 

Employees classified as non-exempt are eligible for: 

1. Minimum wage 
2. Premium Overtime pay (.5× regular rate for hours worked over 40 in a workweek) 
3. Recordkeeping protections under FLSA 

Source: https://www.ecfr.gov/current/title-29/part-778 

  

Exempt Employees (FLSA Overtime Exempt) 

1. Employees are classified as exempt from FLSA overtime and minimum wage requirements only if they meet all DOL exemption criteria. 
2. DOL Exemption Requirements 

Salary Basis Test 

Must be paid a fixed salary not subject to reduction based on quantity or quality of work. 

Salary Level Test 

Must earn at least $684 per week ($35,568 annually) as of current DOL rules.