FLSA status

What Is FLSA Status? 

The Fair Labor Standards Act (FLSA) is a federal law that establishes labor standards, including minimum wage and overtime pay. An employee’s FLSA status refers to their classification under this law, specifically whether they are considered exempt or non-exempt. This classification determines their eligibility for overtime pay.

In simpler terms, FLSA status is a designation that categorizes an employee as either eligible (non-exempt) or not eligible (exempt) to receive overtime pay for working more than 40 hours in a workweek. Understanding this classification is crucial for both employers to ensure proper compensation and for employees to know their rights under the law.

What Is the Difference Between FLSA Exempt & Non-Exempt? 

The Fair Labor Standards Act (FLSA) classifies employees as exempt or non-exempt based on job duties, salary, and overtime pay eligibility criteria. Non-exempt employees are entitled to receive overtime pay at a rate of one and a half times their regular hourly rate for any hours worked beyond 40 hours in a workweek. They are generally paid hourly and are subject to minimum wage regulations. Exempt employees, conversely, are not entitled to overtime pay and are typically paid a predetermined salary regardless of the number of hours worked. They are exempt from minimum wage and overtime pay provisions of the FLSA due to their job duties, which often involve managerial, administrative, or professional tasks that require a higher level of responsibility and discretion.

What Determines FLSA Status?

The determination of an employee’s Fair Labor Standards Act (FLSA) status as exempt or non-exempt is based on several factors:

  • Salary Basis: Exempt employees must be paid on a salary basis, receiving a predetermined amount of pay regardless of the quantity or quality of work performed.
  • Salary Level: Exempt employees must earn a salary above a specified threshold set by the Department of Labor. This threshold is periodically adjusted; however, the current threshold is $684 per week.
  • Job Duties: Exempt employees typically perform executive, administrative, professional, or outside sales duties as defined by the FLSA. These duties involve higher levels of responsibility, discretion, and independent judgment.
  • Primary Job Function: The primary focus of an employee’s job duties is considered when determining exempt status. The employee may be classified as exempt if managerial, administrative, or professional tasks constitute their primary function.

Latest Updates

10 Business Objectives for Workplace Success
10 Business Objectives for Workplace Success

Imagine you're steering a ship through uncharted waters. Without a compass or a map, how would you know if you're on the right course? That's exactly what running a business without clear goals or objectives feels like. In today's competitive business landscape,...

How to Create an Internship Program
How to Create an Internship Program

For decades, businesses have relied on conventional recruitment methods to build their workforce. However, the rapidly evolving business landscape demands a more innovative talent acquisition and development approach.  In this context, a well-structured internship...

25 Employee Engagement Survey Questions
25 Employee Engagement Survey Questions

Employee engagement surveys, a crucial tool for any organization, offer a unique window into employees’ emotional commitment toward their employer and involvement with their work. They can reveal shortfalls in company culture, leadership, and other areas that may be...