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Fair Labor Standards Act (FLSA)
The Fair Labor Standards Act (FLSA) determines whether a position is eligible for overtime pay. Positions that are "exempt" are not eligible for overtime pay, while "nonexempt" positions are eligible for overtime for hours worked beyond 40 hours in one workweek. Review the guidelines to determine a position's FLSA status.
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Determine the FLSA status
To qualify for exemption, employees generally must meet all the following tests:
- Duties Test - The employee's job duties must primarily involve executive, administrative or professional duties as defined by the regulations.
- Salary Basis Test - The employee must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed, for example, on an hourly basis.
- Salary Threshold Test - The salary paid must meet a minimum specified amount. Positions that meet the teaching exemption are not subject to the salary basis and salary threshold test.
Job Duties
FLSA status is determined based on the duties of a position and not the position title. Two positions with the same official title can have different FLSA statuses.
The executive exemption is used for high-level management positions that have the authority to formulate, affect, interpret, or implement management policies. Some professions that may be covered under the executive exemption include: Directors, Associate Provosts, Assistant Deans
The administrative exemption is used for employees whose main job is to “keep business running.” Administrative exempt employees provide support to the operational employees and must perform work that involves the exercising of independent judgment and discretion about matters of significance. To meet the administrative exemption, the employee must perform office or non-manual work related to matters of significance. Clerical employees are not administratively exempt. Some professions that may be covered under the administrative exemption include:
- Human Resources
- Payroll and Finance
- "Assistant to" positions
The professional exemption is used for positions that require specialized education and involve exercising discretion and judgment. These positions must have an education in a recognized field of science or learning. Employees may also fall under the professional exemption when their primary duty requires invention, imagination, originality, or talent in a recognized artistic or creative endeavor field. Some professions that may be covered under the professional exemption include:
- Registered Nurse
- Accountants
- Content Editors/Writers
The computer exemption is used for employees who apply systems analysis techniques and procedures to determine hardware, software, or system functional specifications or who design, develop, test, or modify computer systems or programs based on user or design specifications. Some professions that may be covered under the computer exemption include:
- Systems Analysts
- Programmers
- Software Engineers
Employees who do not meet any of the exemptions are nonexempt. Nonexempt employees are entitled to overtime for each hour they work over the FLSA overtime threshold. Some professions that are nonexempt include:
- Administrative Assistants
- Clerical Employees
- Maintenance/Trades
> Read DOL FLSA Opinion Letters
Opinion letters are issued by the Department of Labor following a case review of a specific position and can often assist in interpreting the FLSA regulations.
Salary Basis
To satisfy the salary basis requirement, the employee must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed.
Hourly employees are non-exempt.
Annually paid employees are exempt if they also meet the job duties and salary threshold test.
Salary Threshold
The FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek.
Video: Restoring and Extending Overtime Protections [1:18]
Threshold for Exemption
To qualify for exemption, employees generally must be paid at not less than $1,128 per week ($58,656 annually) on a salary basis. These salary requirements do not apply to teachers, and employees practicing law or medicine.
| Date | Standard Salary Level |
|---|---|
| Before July 1, 2024 | $684 per week (equivalent to $35,568 per year) |
| July 1, 2024 | $844 per week (equivalent to $43,888 per year) |
| January 1, 2025 | $1,128 per week (equivalent to $58,656 per year) |
Source: DOL FAQ
Additional Guidance for Research Foundation
Exempt and Non-Exempt Determinations for RF
- N= Non-exempt for both salary and duties
- E= Exempt for both salary and duties
- N/E+ Non-exempt for salary and exempt for duties
FLSA Status is Predetermined Based on Duties Test for Each Position Title
- Shown on the position standard as E.XX, NE.XX or N.XX
- The NYS threshold applies to the administrative and executive employees as defined by RF
- NYS threshold-$58,458.40
- Federal threshold- $43,888
- If a position meets the duties test for exemption, but the employee is not paid at least the minimum salary threshold, the position must be classified as non-exempt
Understanding Your Professional Obligation
Professional employees eligible for overtime will earn overtime for hours worked beyond 40 hours in a work week and must communicate effectively with their supervisor to determine their professional obligation. To ensure that your work aligns with guidelines for non-exempt employees, please work closely with your supervisor to manage your schedule.
Contact an Expert
Delorian Miller
Assistant Director, Workforce Planning and Recruitment
Workforce Planning and Recruitment
Lawniece Nichols
Recruitment and Position Specialist
Workforce Planning and Recruitment
Sanjida Uddin
Recruitment and Position Specialist
Workforce Planning and Recruitment
Austin Bennett
Classification and Compensation Analyst
Workforce Planning and Recruitment
Robert Palmer
Director
Research Foundation (RF) Human Resources
Phone: 716-645-4476
Email: rp9@buffalo.edu