Free FLSA Exemption Flowchart and Questionnaire
Determine whether an employee qualifies as exempt or non-exempt under the Fair Labor Standards Act. Walk through the salary level test, salary basis test, and job duties test step by step.
Download Flowchart (Google Docs) →
What This Flowchart Covers
| Section | Details |
|---|---|
| Salary level test | Minimum weekly/annual salary threshold for exemption |
| Salary basis test | Whether pay is a predetermined, non-reducible amount |
| Job duties test | Category-specific questionnaires for each exemption type |
| Executive exemption | Management duties, supervision of 2+ employees, hiring authority |
| Administrative exemption | Office/non-manual work, discretion and independent judgment |
| Professional exemption | Advanced knowledge, specialized education requirements |
| Computer professional exemption | Systems analysis, programming, software engineering duties |
| Outside sales exemption | Primary duty of making sales, working away from employer's location |
| Highly compensated employee | $107,432+ annual compensation with at least one exempt duty |
FLSA Exemption Flowchart
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards. To determine whether an employee is exempt from overtime requirements, evaluate their job duties and salary basis using these three steps.
Step 1: Salary Level Test
Does the employee earn at least $684 per week ($35,568 annually for a full-year worker)?
- Yes — Proceed to Step 2.
- No — Non-Exempt (employee is eligible for overtime).
Step 2: Salary Basis Test
Is the employee paid on a salary basis (i.e., regularly receives a predetermined amount of compensation each pay period)?
- Yes — Proceed to Step 3.
- No — Non-Exempt (employee is eligible for overtime).
Step 3: Job Duties Test
Does the employee's job fit into one of the following exemption categories?
- Executive
- Administrative
- Professional
- Computer Professional
- Outside Sales
- Highly Compensated Employee
Yes — Continue with the appropriate category-specific questionnaire below.
No — Non-Exempt (employee is eligible for overtime).
FLSA Exemption Questionnaire
Executive Exemption
- Is the employee's primary duty managing the enterprise or a recognized department?
- Does the employee regularly supervise two or more full-time employees or their equivalent?
- Does the employee have authority to hire or fire employees, or are their recommendations on hiring, firing, or advancement given significant weight?
Result: If Yes to all questions, the employee is likely exempt under the executive exemption. If No to any question, the employee is likely non-exempt.
Administrative Exemption
- Is the employee's primary duty office or non-manual work directly related to management or general business operations?
- Does the employee exercise discretion and independent judgment in significant matters?
Result: If Yes to both questions, the employee is likely exempt under the administrative exemption. If No to any question, the employee is likely non-exempt.
Professional Exemption
- Is the employee's primary duty performing work that requires advanced knowledge, predominantly intellectual in character?
- Does the advanced knowledge come from specialized education typically beyond a bachelor's degree (e.g., law, medicine)?
Result: If Yes to both questions, the employee is likely exempt under the professional exemption. If No to any question, the employee is likely non-exempt.
Computer Professional Exemption
- Does the employee primarily work as a computer systems analyst, programmer, software engineer, or similarly skilled worker in the computer field?
- Does the employee's job require the application of systems analysis techniques, program design, or creation of computer programs?
Result: If Yes to both questions, the employee is likely exempt under the computer professional exemption. If No to any question, the employee is likely non-exempt.
Outside Sales Exemption
- Is the employee's primary duty making sales or obtaining orders/contracts for services?
- Does the employee regularly work away from the employer's place of business?
Result: If Yes to both questions, the employee is likely exempt under the outside sales exemption. If No to any question, the employee is likely non-exempt.
Highly Compensated Employee (HCE) Exemption
- Does the employee earn at least $107,432 per year?
- Does the employee perform at least one of the exempt duties of an executive, administrative, or professional employee?
Result: If Yes to both questions, the employee is likely exempt as a highly compensated employee. If No to any question, the employee is likely non-exempt.
Final Step: Consult Legal Counsel
While this flowchart and questionnaire help determine FLSA exemption status, it is advisable to consult with legal counsel or an HR professional to ensure compliance with federal and state regulations.
Frequently Asked Questions
Common questions about FLSA exemption classification.
The flowchart walks you through the three tests required to classify an employee as exempt or non-exempt under the Fair Labor Standards Act: the salary level test, salary basis test, and job duties test. It helps HR teams and managers make consistent classification decisions.
As of the most recent federal threshold, employees must earn at least $684 per week ($35,568 annually) to qualify for exemption. The Highly Compensated Employee threshold is $107,432 per year. Check the Department of Labor website for any recent updates.
No. The FLSA requires evaluation of actual job duties and salary, not titles. An employee with a "Manager" title who does not regularly supervise two or more employees or exercise management authority would likely not qualify for the executive exemption.
Misclassification can result in back pay for unpaid overtime, liquidated damages (up to double the amount owed), penalties, and legal fees. The Department of Labor and state agencies can audit and enforce compliance.
Review classifications annually and whenever an employee's duties, responsibilities, or compensation change significantly. Also review when federal or state salary thresholds are updated.
This flowchart covers federal FLSA requirements. Many states have their own overtime rules with different salary thresholds or duty tests. Check your state's requirements at your state labor department or consult the HiveDesk labor law compliance center.
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