An In-Depth Guide and Flowchart to the FLSA Exemption Questionnaire

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards. To determine whether an employee is exempt from overtime requirements under the FLSA, it is essential to evaluate their job duties and salary basis.

Below is a step-by-step flowchart to guide you through this evaluation process, followed by a questionnaire to assess exemption eligibility.

FLSA Exemption Flowchart:

1. Step 1: Salary Level Test
   • Does the employee earn at least $684 per week ($35,568 annually for a full-year worker)?
     1. Yes → Proceed to Step 2.
     2. No → Non-Exempt (Employee is eligible for overtime).
        
        
2. Step 2: Salary Basis Test
   • Is the employee paid on a salary basis (i.e., regularly receives a predetermined amount of compensation each pay period)?
     1. Yes → Proceed to Step 3.
     2. No → Non-Exempt (Employee is eligible for overtime).
        
        
3. Step 3: Job Duties Test
   • Does the employee’s job fit into one of the following exemption categories?
     1. Executive
     2. Administrative
     3. Professional
     4. Computer Professional
     5. Outside Sales
     6. Highly Compensated Employee
   • If Yes → Continue with the appropriate category-specific questionnaire. If No → Non-Exempt (Employee is eligible for overtime).
     
     

FLSA Exemption Questionnaire:

Executive Exemption

1. Is the employee’s primary duty managing the enterprise or a recognized department?
   • Yes / No
2. Does the employee regularly supervise two or more full-time employees or their equivalent?
   • Yes / No
3. Does the employee have authority to hire or fire employees, or are their recommendations on hiring, firing, or advancement given significant weight?
   • Yes / No
     
     

Result: If Yes to all questions → Employee is likely exempt under the executive exemption.
If No to any question → Employee is likely non-exempt.

Administrative Exemption

1. Is the employee’s primary duty office or non-manual work directly related to management or general business operations?
   • Yes / No
2. Does the employee exercise discretion and independent judgment in significant matters?
   • Yes / No
     
     

Result: If Yes to both questions → Employee is likely exempt under the administrative exemption.

If No to any question → Employee is likely non-exempt.

Professional Exemption

1. Is the employee’s primary duty performing work that requires advanced knowledge, predominantly intellectual in character?
   • Yes / No
2. Does the advanced knowledge come from specialized education typically beyond a bachelor’s degree (e.g., law, medicine)?
   • Yes / No
     
     

Result: If Yes to both questions → Employee is likely exempt under the professional exemption.

If No to any question → Employee is likely non-exempt.

Computer Professional Exemption

1. Does the employee primarily work as a computer systems analyst, programmer, software engineer, or similarly skilled worker in the computer field?
   • Yes / No
2. Does the employee’s job require the application of systems analysis techniques, program design, or creation of computer programs?
   • Yes / No
     
     

Result: If Yes to both questions → Employee is likely exempt under the computer professional exemption.

If No to any question → Employee is likely non-exempt.

Outside Sales Exemption

1. Is the employee’s primary duty making sales or obtaining orders/contracts for services?
   • Yes / No
2. Does the employee regularly work away from the employer’s place of business?
   • Yes / No
     
     

Result: If Yes to both questions → Employee is likely exempt under the outside sales exemption.

If No to any question → Employee is likely non-exempt.

Highly Compensated Employee (HCE) Exemption

1. Does the employee earn at least $107,432 per year?
   • Yes / No
2. Does the employee perform at least one of the exempt duties of an executive, administrative, or professional employee?
   • Yes / No
     
     

Result: If Yes to both questions → Employee is likely exempt as a highly compensated employee.

If No to any question → Employee is likely non-exempt.

Final Step: Consult Legal Counsel

While this flowchart and questionnaire help determine FLSA exemption status, it is advisable to consult with legal counsel or an HR professional to ensure compliance with federal and state regulations.