The Three-Part Exemption Test
To be exempt from FLSA overtime, an employee must meet all three of the following conditions:
- Salary basis: Paid a fixed salary that doesn't vary with hours worked.
- Salary level: Earns at least $684/week ($35,568/year) as of 2024. Some states have higher thresholds (e.g., California requires $1,240/week).
- Duties test: Job duties primarily fall into an exempt category (see below).
Exempt Job Categories (White-Collar Exemptions)
- Executive: Manages 2+ full-time employees and has real authority over hiring/firing.
- Administrative: Performs office work directly related to business operations; exercises independent judgment on significant matters.
- Professional (Learned): Work requiring advanced knowledge in a field of science or learning (doctors, lawyers, CPAs, engineers).
- Computer employees: Systems analysts, programmers, software engineers earning $684/week or $27.63/hour.
- Outside sales: Primary duty is making sales away from the employer's place of business.
Common Misconceptions
"I'm salaried, so I can't get overtime" — False. Many salaried employees are non-exempt if they don't meet all three criteria above.
"My title is Manager, so I'm exempt" — False. Job titles don't determine exemption status — actual duties do.
What to Do If You Think You're Misclassified
If you believe your employer has incorrectly classified you as exempt, you can file a wage claim with the U.S. Department of Labor's Wage and Hour Division or your state's labor department. Back pay may be recoverable for up to 3 years.