FLSA Duties Test: Definition and Explanation
The FLSA duties test is used to evaluate whether an employee qualifies for exemption from minimum wage and overtime rules under the Fair Labor Standards Act (FLSA). Administered by the U.S. Department of Labor, this assessment determines whether an employee’s specific job responsibilities meet the standards for an exempt classification.
Understanding the FLSA Duties Test
The FLSA sets federal standards for wages, overtime eligibility, child labor, and recordkeeping for private-sector employers in the United States. Employees covered by these regulations are considered nonexempt and are entitled to minimum wage and overtime pay. In contrast, exempt employees—often referred to as “white-collar workers”—are not entitled to these protections.
To be classified as exempt, employees must generally satisfy two key criteria:
- Their job responsibilities must align with the duties outlined in the FLSA duties test.
- They must earn at least the minimum required salary (except in some cases, such as outside sales roles).
If an employee fails to meet either requirement, they must be treated as nonexempt.
Categories of Exempt Employees Under the FLSA
Exemptions typically apply to the following roles:
- Executive
- Administrative
- Professional (both learned and creative)
- Computer-related
- Outside sales
Overview of Job Duty Requirements by Exemption Category
Executive Exemption
- Must primarily manage a department or the business as a whole.
- Regularly supervises at least two full-time employees.
- Has hiring and firing authority, or input that carries weight.
- Must earn at least $684 weekly on a salary basis.
Administrative Exemption
- Performs office or non-manual tasks directly tied to business operations or customer service.
- Exercises independent judgment on significant business matters.
- Minimum weekly salary: $684.
Professional Exemption
Learned Professionals:
- Work involves advanced knowledge in a field of science or learning.
- Knowledge is typically obtained through prolonged academic training.
- Must earn at least $684 per week.
Creative Professionals:
- Job must involve originality, imagination, or artistic talent.
- Must also earn at least $684 weekly.
Computer Employee Exemption
- Applies to software engineers, systems analysts, and similar roles.
- Primary duties include software design, development, documentation, testing, or system analysis.
- Compensation must be at least $684 per week (salary or fee) or $27.63 per hour.
Outside Sales Exemption
- Job must focus on making sales or securing contracts for services or use of company facilities.
- Employee must work primarily away from the employer’s physical place of business.
- No salary threshold applies, only job duties are considered.
Highly Compensated Employees
Employees earning $107,432 or more annually can be considered exempt if:
- They earn at least $684 per week in salary or fees.
- They regularly perform at least one duty of an exempt executive, administrative, or professional employee.
Important Notes for Employers
Here’s what employers, including those using providers like Beyond, should keep in mind:
- Confirm your business falls under FLSA jurisdiction (most U.S. companies do).
- Ensure exempt employees meet both the duties and salary thresholds (except for outside sales).
- Exempt workers are not entitled to overtime pay beyond 40 hours per week, although bonuses or flat-rate compensation can still be offered.
- Review applicable state labor laws, if state and federal standards differ, follow the law that offers the most protection to the employee.
- If an employee no longer performs duties that qualify under the exemption, they lose their exempt status—even if their salary remains above the threshold.
- Job titles alone don’t determine exempt status; responsibilities and compensation must meet the FLSA criteria.