FLSA Salary Threshold Updates: Classifying Exempt vs Non-Exempt Workers

Understanding the Standard Duties and Salary Tests#

To properly classify an employee as exempt under FLSA regulations, employers must satisfy both the salary basis test and the specific job duties test. Meeting the salary requirement alone is never sufficient.

Common Misclassification Pitfalls#

• Assuming all salaried employees are exempt from overtime compensation.
• Failing to account for higher state-specific salary thresholds (e.g., California and New York).
• Improper deductions from exempt employees' predetermined salaries during slow work weeks.

Always conduct bi-annual job audits to verify that day-to-day responsibilities continue to align with statutory exemptions.