What is an Exempt Employee?

An exempt employee is a worker who is exempt from overtime pay and minimum wage requirements under the Fair Labor Standards Act (FLSA). To qualify for exempt status, employees must meet specific salary and duties tests.

Key Criteria for Exempt Status:

  • Salary Basis Test: Must be paid a predetermined and fixed salary
  • Salary Level Test: Must be paid at least $684 per week ($35,568 annually)
  • Duties Test: Must primarily perform executive, administrative, or professional duties

Common Exemption Categories:

Executive Exemption

  • Primary duty is managing the enterprise or a department
  • Regularly directs work of at least two employees
  • Authority to hire, fire, or influence employment decisions

Administrative Exemption

  • Non-manual work related to business operations
  • Exercise of independent judgment in significant matters
  • Primary duty is office or non-manual work

Professional Exemption

  • Work requiring advanced knowledge
  • Predominantly intellectual in character
  • Requires consistent exercise of discretion

Exempt Status Calculator

Rights and Responsibilities

Employer Obligations

    Employee Rights

      FLSA Compliance Guidelines

      Additional Resources

        Tax Implications

        Employer Tax Considerations

        Employee Tax Implications