Employment Litigation
Wage and Employment Claims
Non-exempt employees must receive overtime for hours over forty. Exemptions require both a salary basis and satisfaction of a duties test for executive, administrative, professional, outside sales, or computer roles.
The salary threshold is set by regulation and periodically revised.
Alternative Names:
Exempt Status|FLSA Exemption
Why it Matters?
The duties test governs rather than the title or the salary, so an employee paid a substantial salary with an impressive title remains non-exempt if the actual work does not satisfy the applicable test. The administrative exemption is the most litigated because its discretion and independent judgment requirement is genuinely ambiguous in many roles. Salary threshold revisions also convert previously exempt positions without any change in duties.
Frequently Confused with
Related terms
Frequently asked questions
What governs exempt status?
Which exemption is most litigated?
