How is FLSA exemption calculated?

With few exceptions, to be exempt an employee must (a) be paid at least $23,600 per year ($455 per week), and (b) be paid on a salary basis, and also (c) perform exempt job duties. These requirements are outlined in the FLSA Regulations (promulgated by the U.S. Department of Labor).

What does it mean to be FLSA exempt?

Exempt: An individual who is exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) because he or she is classified as an executive, professional, administrative or outside sales employee, and meets the specific criteria for the exemption. Certain computer professionals may also be exempt.

Should I claim withholding exemption?

Who Should Be Filing Exempt on Taxes? As noted above, you can claim an exemption from federal withholdings if you expect a refund of all federal income tax withheld because you expect to have no tax liability and had no tax liability in the previous tax year.

Does the employee meet the definition of FLSA-exempt administrative employee?

The employee meets the definition of FLSA-exempt administrative employee only if you EXEMPT answered YES to all questions, and should be marked as exempt. If you answered NO to any of the questions, then the employee does not meet the definition for the administrative exemption, and you must mark the employee as non-exempt. GSA 5025 11/2017BACK

When to mark an employee as non-exempt from the FLSA?

NON-EXEMPT 7. The employee meets the definition of FLSA-exempt administrative employee only if you EXEMPT answered YES to all questions, and should be marked as exempt. If you answered NO to any of the questions, then the employee does not meet the definition for the administrative exemption, and you must mark the employee as non-exempt.

What is the new salary threshold for FLSA?

The FLSA took effect. The salary-level threshold was raised to $2,600 annually for exempt administrative or professional employees, except for exempt executives, who had to be paid at least $1,560 annually. An annual salary level of $5,200 would satisfy all overtime exemptions, according to a new final rule.

What is the Fair Labor Standards Act (FLSA)?

The Fair Labor Standards Act (FLSA) was signed into law. The first overtime salary-level threshold was $1,560 annually for the executive and administrative exemption. No earnings threshold was set for the professional exemption. The FLSA took effect.