Duties Test
Deciphering FLSA: Unveiling the Duties Test
Understanding the FLSA Duties Test
The Fair Labor Standards Act (FLSA) duties test serves as a crucial mechanism for distinguishing between exempt and non-exempt employees, forming a cornerstone of fair pay practices and employment rights protection.
FLSA and Employee Protections
Enacted as a federal law, the FLSA safeguards employees’ rights by establishing fundamental protections such as minimum wage and overtime pay. The core distinction under the FLSA categorizes each employee as either non-exempt or exempt from overtime pay.
Categories of Exempt Employees: Unveiling the Duties Test
Exempt Classifications and Criteria
For an employee to attain exempt status, their position must align with one of the five duties test categories:
- Administrative
- Computer
- Executive
- Outside Sales
- Professional
Except for outside sales, each exemption category mandates a minimum weekly salary of $684 (as of 2020 figures), and the computer category allows for an hourly rate of $27.63. Additionally, specific job duties associated with each category must be met. Contrary to common misconception, meeting salary requirements alone does not guarantee exemption—employees must also fulfill the designated job duties.
Exempt Job Duties: Navigating Each Category
1. Administrative:
- Primary Duty: Managing part of the company’s business operations.
- Requirements: Discretion and independent judgment in decision-making.
2. Computer:
- Roles: Computer systems analyst, programmer, software engineer, or equivalent.
- Primary Responsibilities: Application and/or design of computer programs or related systems.
3. Executive:
- Primary Duty: Managing the company or a recognized department.
- Responsibilities: Directing at least two or more full-time employees, with authority in hiring, firing, and offering advancement opportunities.
4. Outside Sales:
- Primary Duty: Making sales or obtaining orders away from the employer’s place of business.
5. Professional:
- Requirements: Advanced knowledge in intellectual work in a field of science or learning, acquired from a specialized course.
Highly Compensated Employees:
- Exempt if they regularly perform duties described in the executive, professional, or administrative categories.
Exemptions: Scope and Limitations
Profession-Specific Exclusions
- Exemptions do not extend to manual laborers, blue-collar workers with physical skills-focused tasks, police, firefighters, paramedics, and first responders.
State-Specific Duties Tests
- Some states have their own exemption requirements, and if conflicting with the FLSA duties test, employers must adhere to the option more favorable to the employee.
Avoiding Duties Test Errors: A Call for Diligence
Common Errors and Prevention
- Misclassification: Regularly audit employee payroll status to ensure proper classification.
- Compensation Issues: Adhere to FLSA guidelines, conducting audits annually or with each FLSA update to avoid errors in duties test application.