On May 28, 2026, the U.S. Department of Labor issued Opinion Letter FLSA2026-5. The letter considered employees at an academic medical center who worked in salaried, exempt specialist positions and also picked up hourly shifts as nonexempt staff nurses.
The Wage and Hour Division concluded that performing additional nonexempt work at an hourly rate did not automatically destroy the employees' exempt status. The conclusion depended on the employees' exempt specialist work remaining their primary duty and the salary requirements continuing to be satisfied.
The arrangement reviewed by the Department
The employer classified nursing professional development specialists as exempt and paid them approximately $4,000 every two weeks. The specialists generally worked about 40 hours Monday through Friday in their specialist roles.
Some specialists voluntarily picked up one or occasionally two 12-hour weekend shifts as staff nurses. The staff-nurse work was paid hourly. Staff nurses were otherwise classified as nonexempt and eligible for overtime.
Primary duty remains the central question
For executive, administrative, and professional exemptions, the employee's primary duty must be exempt work. Primary duty means the principal, main, major, or most important duty performed.
Time spent is useful but not conclusive. Employees who spend more than 50 percent of their time performing exempt work will generally satisfy the time-based guide, but a qualitative analysis is still required. Relevant factors include:
- The importance of exempt duties compared with nonexempt duties
- The amount of time spent on exempt work
- Freedom from direct supervision
- The employee's authority and discretion
- The relationship between salary and wages paid for similar nonexempt work
In the opinion letter, the specialist role remained the primary duty because the employees spent the substantial majority of their regular work performing specialist functions involving autonomy, education, competency development, and professional judgment.
Additional hourly compensation is allowed
Federal regulations generally permit an exempt employee to receive additional compensation without violating the salary-basis requirement, provided the employee is guaranteed at least the required salary.
The extra payment can be calculated on an hourly, flat-sum, bonus, straight-time, time-and-one-half, or other basis. The FLSA does not require an employer to pay extra compensation to an exempt employee for additional work, but it generally does not prohibit the employer from doing so.
When the arrangement could create overtime liability
The result can change when the employee's combined duties show that nonexempt work has become the primary duty. The opinion letter warns that if the employee's actual work over time primarily consists of nonexempt activities, the employer may no longer properly claim the exemption.
In that situation, overtime could be calculated using the combined remuneration and total hours from both positions. Employers cannot preserve an exemption merely by labeling one role exempt when the employee's actual primary duty is nonexempt.
Example
Assume a salaried professional receives $1,500 per week for qualifying exempt work and picks up one eight-hour Saturday shift performing routine hourly work at $30 per hour. The additional $240 payment does not automatically invalidate the exemption when:
- The guaranteed salary remains intact
- The exempt work remains the primary duty
- The employee continues to satisfy the applicable duties test
- The payment method does not disguise an hourly compensation arrangement that fails the salary-basis rules
By contrast, if the employee gradually spends most working time in the nonexempt role and the exempt functions become secondary, the classification must be reassessed.
Healthcare employers are not the only businesses affected
The same issue can arise when:
- An exempt IT manager performs weekend help-desk shifts
- An exempt trainer performs production work during a labor shortage
- An exempt administrator works hourly event shifts
- An exempt engineer performs technician work
- An exempt retail manager works hourly shifts at another location
Opinion letters are fact-specific. A conclusion involving nursing specialists does not automatically control a different occupation or compensation plan.
Employer checklist
- Document the exempt employee's primary duty.
- Track how much nonexempt work is performed and why.
- Preserve the guaranteed weekly salary.
- Use a written policy for additional hourly assignments.
- Review state law, which may impose stricter requirements.
- Reevaluate the exemption when additional work becomes frequent or permanent.
Frequently Asked Questions
Can an exempt employee receive hourly pay for extra work?
Yes, under federal law, additional hourly compensation may be permitted without losing the exemption when the guaranteed salary and duties requirements remain satisfied.
Does the employee receive overtime for the second role?
Not automatically. If the employee remains properly exempt, the FLSA generally does not require overtime. An employer may voluntarily offer premium pay.
Can nonexempt work ever destroy the exemption?
Yes. If the employee's actual primary duty becomes nonexempt work, the exemption may no longer apply.
Is there a strict limit on the percentage of nonexempt work?
Federal regulations do not impose a universal strict percentage. Time is an important guide, but the complete primary-duty analysis is qualitative and fact-specific.
Does the opinion letter apply automatically to every employer?
No. It is based on specific facts and assumptions. Different duties, compensation methods, state laws, or work patterns may produce a different result.
Official Source
- U.S. Department of Labor — Opinion Letter FLSA2026-5
- U.S. Department of Labor — May 29, 2026 opinion-letter announcement
This article summarizes a fact-specific federal opinion letter and is not legal or payroll advice.
This calculator is for educational purposes only. Consult your employer or a labor attorney for advice specific to your situation.