Frequently Asked Questions
Common questions about FLSA exempt/non-exempt classification and how Exemptly works.
What does "exempt" vs "non-exempt" mean?▼
Under the Fair Labor Standards Act (FLSA), "exempt" employees are not entitled to overtime pay for hours worked over 40 per week. "Non-exempt" employees must receive overtime pay at 1.5x their regular rate. The classification depends on both salary level and job duties meeting specific criteria.
What is the current federal salary threshold?▼
As of January 2025, the federal minimum salary for most FLSA exemptions is $684 per week ($35,568 annually). Some states set higher thresholds. You can edit the threshold in the assessment tool to match your state's requirement.
What are the five exemption categories?▼
The FLSA recognizes five main white-collar exemptions: Executive (manages 2+ employees), Administrative (office work with independent judgment), Professional/Learned (requires advanced degree-level knowledge), Computer Employee (systems analysts, programmers), and Outside Sales (primarily sells away from the office). Each has its own duties test.
Is the salary test the only requirement?▼
No. To qualify as exempt, an employee must meet BOTH the salary basis test (earning at least the minimum threshold) AND the duties test for their exemption category. Meeting the salary threshold alone is not sufficient — the employee's actual job duties must also qualify.
What happens if I classify an employee incorrectly?▼
Misclassifying a non-exempt employee as exempt can result in liability for unpaid overtime, liquidated damages (up to double the unpaid wages), and attorney fees. The DOL can also impose penalties. Back pay claims can cover up to 2 years (3 years for willful violations).
Does my state have different rules?▼
Several states (California, New York, Colorado, Washington, and others) have their own salary thresholds that are higher than the federal minimum. When state and federal law differ, the standard that provides greater protection to the employee applies. Exemptly focuses on federal criteria but lets you edit the salary threshold to match your state.
Is Exemptly a substitute for legal advice?▼
No. Exemptly is an educational tool that helps you understand the criteria used for FLSA classification. It provides a risk assessment based on the information you enter, but classification decisions can involve nuanced fact-specific analysis. For binding legal guidance, consult a qualified employment attorney.
How accurate is the risk score?▼
The risk score reflects how well the role matches the DOL's published criteria for the selected exemption category. A HIGH score means strong alignment with the criteria; LOW means weak alignment. The score is a starting point for decision-making, not a legal determination.
Can I save my results?▼
Yes. On the results page, click "Print / Save as PDF" to generate a printable summary with all your answers, the risk score, and DOL source citations. This can be saved as a PDF or printed for your records.
What about the highly compensated employee (HCE) exemption?▼
Employees earning at least $107,432 in total annual compensation (as of January 2025) may qualify for a streamlined duties test. They must still perform at least one exempt duty from the executive, administrative, or professional categories. This shortcut is not currently modeled in Exemptly but may be added in a future update.
Do I need to create an account?▼
No. Exemptly is completely free and requires no signup. Your assessment data stays in your browser and is not stored on any server.
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