FLSA Status

The Fair Labor Standards Act (FLSA) classifies employees as exempt or non-exempt from overtime pay and other wage protections. That classification, an employee’s FLSA status, determines whether they are eligible for overtime pay, minimum wage, and certain record-keeping requirements.

An exempt employee does not get paid overtime because they meet specific criteria around job duties, salary level, and how they are paid. Exempt roles are usually executives, administrators, professionals, outside sales staff, and some computer-related jobs. A non-exempt employee is covered by FLSA overtime and minimum wage protections, so the employer has to pay them overtime for any hours worked beyond 40 in a workweek.

Determining FLSA status means looking at the job’s actual duties, how the person is compensated, and whether they qualify for an exemption. Getting it wrong can lead to compliance violations, back pay claims, and penalties.