Just the Facts: Is My Employee Exempt or Not?

With so many changes looming about, it’s important to keep the critical information you and your company need to know both straightforward and simple.


If an employer is governed by the Fair Labor Standards Act (FLSA), then their employees are labeled either exempt or non-exempt. Correctly identifying the status of your employees can mean the difference between smooth sailing or hefty penalties and fines. 


Is this relevant to my company?

Employers who abide by the FLSA have committed to abiding by certain standards affecting employees in the private sector and in Federal, State, and local governments. 

  • Minimum wage
  • Overtime
  • Hours worked
  • Recordkeeping
  • Child labor


So, if your organization is governed under the FLSA, how do you know if your employees are exempt or not?




According to the FLSA, “with few exceptions,” in order to be qualified as exempt, an employee must adhere to three critical identifiers:

  • Paid a salary
  • Paid a minimum of $455 per week ($23,600 annually)
  • Regularly carry out job duties as outlined under the exempt status


These employees have minimal rights under the FLSA in regard to overtime rules and are not eligible for overtime pay. 



On the opposite side of the coin are those that fall under non-exempt guidelines and status. 


Employees who are paid less than $23,600 per year (or less than $455 per week) are considered non-exempt according to the FLSA. 


These employees are entitled to 1.5x their pay rate for every hour of work performed over the overtime threshold during a

pay period. 


Fine print

What does “salary basis” mean?

Salary basis means your employee is guaranteed a minimum amount they can count on in exchange for a work week where work is performed


What are exempt job duties?

Employees with exempt job duties usually perform “high-level work.” These employees generally hold the titles of “executive,” “professional,” and “administrative.” 


As a best practice, it’s important to the longevity of your business to keep a watchful eye on both the rules and regulations that fall under exempt and non-exempt classifications, as well as the job duties and responsibilities of your employees.


Instead of hoping you’ve crossed all your Ts and dotted all your Is, give FastPay a call to ensure your company is safe and secure for the road ahead.New Call-to-action

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