FLSA Status refers to how a job or employee is classified under the Fair Labor Standards Act (FLSA), a U.S. federal law that establishes standards for minimum wage, overtime pay, recordkeeping, and child labor. An employee's FLSA status determines whether they are “exempt” or “non-exempt” from overtime pay rules.
Simplify credential management
Tracking employee certifications and licenses doesn't have to be complicated. Expiration Reminder helps you send automated notification and keep your company compliant.
Key Facts
- Two Main Classifications:
- Exempt: Not eligible for overtime pay; typically salaried employees in executive, administrative, or professional roles who meet specific duties and salary thresholds.
- Non-Exempt: Eligible for overtime pay (1.5x regular rate) for hours worked beyond 40 hours/week.
- Common Exempt Positions: Include managers, executives, professionals (such as lawyers, doctors), outside sales reps, and certain administrative roles that require discretion and independent judgment.
- Salary Threshold: To qualify as exempt, employees must earn at least $684/week ($35,568/year) under current federal law. This may vary by state (for example, California requires a higher threshold).
- Duties Test: Exempt status isn’t determined by job title alone - it also depends on the employee’s actual job duties, including decision-making responsibilities.
- Overtime Rules Apply to Non-Exempt: Non-exempt employees must be paid time-and-a-half for any time worked beyond 40 hours in a workweek.
- Misclassification Risks: Misclassifying workers (for example, labeling a non-exempt employee as exempt) can result in fines, lawsuits, and back pay liabilities for employers.
1. What does FLSA status mean?
It indicates whether an employee is exempt or non-exempt from federal overtime pay requirements.
2. What’s the difference between exempt and non-exempt employees?
- Exempt employees are not entitled to overtime pay.
- Non-exempt employees must be paid overtime (1.5x) for hours over 40 per week.
3. How is FLSA status determined?
By evaluating the employee’s salary level, payment structure (salaried/hourly), and job duties using federal and sometimes state criteria.
4. Can hourly workers be exempt?
Rarely. Most exempt employees are salaried, although some exceptions exist under special rules.
5. Why is correct FLSA classification important?
Misclassification can lead to legal penalties, back pay claims, and damage to an employer’s reputation.
Make sure your company is compliant
Say goodbye to outdated spreadsheets and hello to centralized credential management. Avoid fines and late penalties by managing your employee certifications with Expiration Reminder.
.png)
