Overtime Exemption Calculator
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Weekly OT Pay (if non-exempt)
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Understanding FLSA Overtime Exemption
The Fair Labor Standards Act (FLSA) requires employers to pay overtime (1.5x regular rate) for hours worked beyond 40 per week, unless the employee qualifies for an exemption. Exemption requires passing both a salary test and a duties test. As of 2025, the salary threshold is $58,656 per year ($1,128 per week).
The duties test varies by exemption type. Executive exemptions require managing a department and supervising employees. Administrative exemptions require office work directly related to business operations with independent judgment. Professional exemptions require advanced knowledge in a field of science or learning. Computer professional exemptions apply to systems analysts, programmers, and software engineers.
Outside sales employees who regularly work away from the employer's place of business are exempt regardless of salary level. Misclassifying non-exempt employees as exempt can result in significant back-pay liability, penalties, and legal costs for employers.
Frequently Asked Questions
What is the current FLSA salary threshold?
As of 2025, employees must earn at least $58,656 per year ($1,128 per week) on a salary basis to potentially qualify for the white-collar overtime exemptions. This threshold is updated periodically by the Department of Labor.
Can salaried employees get overtime?
Yes. Being salaried does not automatically mean exempt from overtime. The employee must also meet the salary threshold and pass the applicable duties test to be classified as exempt.
What happens if my employer misclassifies me?
If you are misclassified as exempt, you may be owed back overtime pay for up to 2-3 years. Employers may also face liquidated damages (double back pay) and attorney fees. File a complaint with the Department of Labor.
Do state laws affect overtime exemption?
Yes, many states have higher salary thresholds or stricter duties tests than federal law. California, New York, Washington, and Colorado have notably higher thresholds. Employers must comply with whichever law is more favorable to the employee.