FLSA Status

What Is FLSA Status?

When managing employees or reviewing your own job classification, one term you'll likely encounter is FLSA status. This classification plays a critical role in how employees are paid, their rights under federal law, and how employers must comply with wage and hour standards. The term comes from the Fair Labor Standards Act (FLSA) — a foundational piece of U.S. labor law passed in 1938 that still governs most American workplaces today.

Exempt or Non-Exempt Employees

At its core, FLSA status refers to whether an employee is exempt or non-exempt from the FLSA’s requirements, particularly when it comes to overtime pay and minimum wage protections.

Exempt employees do not qualify for overtime pay, regardless of how many hours they work over 40 in a week. These individuals are typically salaried and hold professional, executive, or administrative roles that meet certain legal tests.

Non-exempt employees, on the other hand, are covered by the FLSA’s protections. They must be paid at least the federal minimum wage and receive overtime pay at a rate of 1.5 times their regular rate for any hours worked over 40 in a workweek.

How Is FLSA Status Determined?

To qualify as exempt, an employee must meet all three of the following criteria:

• Salary Basis Test
  The employee must receive a fixed salary, not subject to deductions based on the quantity or quality of work.
• Minimum Salary Level
  The employee must earn at least $684 per week (or $35,568 annually), as set by the U.S. Department of Labor. This threshold can change over time due to inflation or policy changes.
• Job Duties Test
  The employee’s primary job responsibilities must fit into one of the exempt categories, such as executive, administrative, professional, outside sales, or certain tech roles. Each category has specific, defined criteria.

Failing to meet any of these requirements means the employee must be classified as non-exempt and, therefore, is eligible for overtime pay.

Why FLSA Status Matters?

Accurate classification of employees is a legal requirement — not an HR preference. Misclassifying an employee can lead to serious consequences, including back pay, penalties, lawsuits, and Department of Labor audits. For employees, knowing your FLSA status empowers you to understand your rights, avoid unpaid overtime, and challenge improper pay practices.

Employers benefit from properly classifying workers by maintaining compliance, avoiding liability, and creating a more transparent workplace. It also affects how employers track hours, manage workloads, and structure compensation.

Common Misconceptions About FLSA Status

One of the most widespread myths is that salary automatically equals exemption. That’s not true. An employee may earn a salary and still be non-exempt if their job duties don’t meet the legal definition of an exempt role. Likewise, simply giving someone a managerial title like "Supervisor" or "Team Lead" doesn’t mean they qualify as exempt under federal law.

Another common error is assuming part-time employees can’t be exempt. In reality, part-time employees can be classified as exempt if they meet the salary and duties tests, although this is less common.

Final Thoughts

FLSA status is more than a technical HR term — it’s a legal classification that directly impacts worker rights and employer responsibilities. Whether you’re managing payroll or trying to understand your paycheck, getting your FLSA status right is crucial. Employers should review job roles regularly to ensure they meet legal standards, and employees should be proactive in understanding their classification and speaking up when something doesn’t feel right.

Frequently Asked Questions About FLSA Status

1. Can an employee be paid a salary and still be non-exempt?
Yes. If their job duties don’t meet the exemption criteria, they must be classified as non-exempt even if they’re paid a fixed salary.

2. Does FLSA status apply to independent contractors?
No. The FLSA only applies to employees. Independent contractors are not covered under FLSA wage and hour protections, but misclassifying an employee as a contractor can lead to legal issues.

3. Can employers choose to waive overtime pay for salaried employees?
No. Overtime rules are dictated by federal law. If an employee is non-exempt, the employer must pay overtime, regardless of salary agreements.

4. Do state laws override FLSA exemptions?
State laws can offer greater protection than federal law, but not less. If a state requires overtime after 8 hours in a day (like California does), then employers must follow the stricter rule. In any conflict, the law more favorable to the employee applies.

5. How can I find out my FLSA status?
You can check your job description, your pay structure, and your employer’s classification. If in doubt, consult your HR department or review the U.S. Department of Labor’s resources. In disputes, a labor attorney or a DOL complaint may be necessary.