flsa exemption test worksheetflsa exemption test worksheet

As part of his job responsibilities, he provides tax and advisory services to client companies. endstream endobj 702 0 obj <. Please enable scripts and reload this page. .agency-blurb-container .agency_blurb.background--light { padding: 0; } hb```f``a``[ @1GzmzSgN?}cvoo'6]\b,X3{es.sG5@Mj 00g eH }"PJa @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} INSTRUCTIONS: The federal Fair Labor Standards Act ("FLSA") requires most employees to receive at least minimum wage and overtime pay at one and one-half the regular rate of pay for all hours worked over 40 during a workweek. The administrative exemption is also available to employees compensated on a salary or fee basis at a rate not less than $684* a week, or on a salary basis which is at least equal to the entrance salary for teachers in the same educational establishment, and whose primary duty is performing administrative functions directly related to academic instruction or training in an educational establishment. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} These pages summarize the Fair Labor Standards Act (FLSA) and how the U.S. Office of Personnel Management (OPM) applies it to current and former employees of the United States Federal Government. His decisions impact on client operations help substantiate his case under the administrative exemption, too. To meet the directly related to management or general business operations requirement, an employee must perform work directly related to assisting with the running or servicing of the business, as distinguished, for example from working on a manufacturing production line or selling a product in a retail or service establishment. John is an insurance claims analyst, earns a salary of $70,000, and has no direct reports. The FLSA Duties Test is a tool you need to be familiar and comfortable using. Whether your workers punch-in with a keycard or their fingerprint, Namelys physical time clocks makes logging time easy. An official website of the United States government. So, if they dont customarily and regularly make it out of their home office, they wont qualify for this exemption. Consider this example: a company employs two graphic designers and assigns the same task to both. Use this template to update your employment classifications policy in your employee handbook. Form #: GSA5025. Unlike other white collar exemptions under the FLSA, outside sales employees are not subject to the minimum salary requirements, nor the salary basis test. The user-friendly drag&drop user interface makes it easy to add or relocate areas. She spends most of her time pitching her companys products to hospitals and supermarkets, on location. Factors to consider include, but are not limited to: whether the employee has authority to formulate, affect, interpret, or implement management policies or operating practices; whether the employee carries out major assignments in conducting the operations of the business; whether the employee performs work that affects business operations to a substantial degree; whether the employee has authority to commit the employer in matters that have significant financial impact; whether the employee has authority to waive or deviate from established policies and procedures without prior approval, and other factors set forth in the regulation. Her job responsibilities include re-tracing the papers cartoons and formatting the text that goes into the cartoons speech bubbles.. The employer must select a representative period in order to determine if this condition has been met. This window allows for the correction of an inadvertent deduction if an employee is promptly and fully reimbursed for it. If an organization has enterprise coverage, all of its employees are covered by the provisions of the FLSA. With your classifications set, youll be ready for the next big hurdle in overtime compliance: managing employee hours. .manual-search-block #edit-actions--2 {order:2;} Getting managers and employees on board with FLSA rules and timekeeping rules can be even more challenging than determining exemption status. If the incumbent in the position earns less than the minimum required salary ($35,568 per year or $684 per week), the position is considered non-exempt and is subject to the overtime provisions of the FLSA. p.usa-alert__text {margin-bottom:0!important;} Reader. The employee meets the definition of FLSA-exempt learned professional and should be EXEMPT marked as exempt only if you answered YES to all questions. The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. This exemption does not apply to occupations in which most employees acquire their skill by experience rather than by advanced specialized intellectual instruction. An official website of the United States government. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies. Fair Labor Standards Act (FLSA) Designation Worksheet (5 CFR Part 551) (Complete Worksheet in conjunction with Instructions for Completing the FLSA Designation Worksheet) Position Title/Pay Plan/Series/Grade: Position Number/Organization/Organization Code: I. The Fair Labor Standards Act Compliance Assistance Toolkit contains: An agency within the U.S. Department of Labor, 200 Constitution Ave NW Jim earns about $41,000 as an assistant manager at a local restaurant. PDF FLSA Exemption Test - University of South Carolina HR can use the tools and guidance in this resource hub page to identify . This checklist will walk you through the process of auditing your current pay practices to ensure you are following all applicable wage and hour laws. There are two general types of exempt professional employees: learned professionals and creative professionals. If an employee is nonexempt, they must be eligible for overtime pay. In order for an exemption to apply, an employees specific job duties and salary must meet all the requirements of the Departments regulations. ", Per diem localities with county definitions shall include"all locations within, or entirely FLSA Overtime Fact Sheet: HR Guide to Exemptions - Fuse Workforce Under it, an employee must be eligible for overtime pay regardless of their rank or job duties (unless they're an outside sales employee, as you'll learn in this guide). Some of his duties include interviewing insured clients, reviewing damage reports, preparing estimates, and helping determine eligibility for coverage. Additionally, as the practice spreads we can expect to see more states drafting their own legislation on the issue.Labor law experts commonly recommend that employers take the following steps if implementing a biometric timekeeping system: Use the Biometric Date Collection and Use Notice and Consent Form linked on the left to provide employees with information about your practices and document their authorization. Professional Exemption Test Is the employee's primary duty: Determination of an employees primary duty must be based on all the facts in a particular case, with the major emphasis on the character of the employees job as a whole. 1g&>*Xy/bce^[X x+4_`#+aFll>&_J_L{C:LIt\i{TV '88&0.8M3r{K8-uR1=wR@!=yLb*+6#// E We would like to make a long term reduction in exempt workers workweek. Work Requiring Advanced KnowledgeWork requiring advanced knowledge means work which is predominantly intellectual in character, and which includes work requiring the consistent exercise of discretion and judgment. And what of the highly compensated employee exemption? %%EOF Most importantly, any fixed location used by an outside sale employee as a headquarters like their own home office, or a satellite office will be considered the employers place of business. If it's relevant or interesting and it relates to taking care of your people, we're publishing it. Employers are also required to provide a place that is shielded from view and free from intrusion from coworkers and the public. *Note: The Department of Labor revised the regulations located at 29 C.F.R. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. .h1 {font-family:'Merriweather';font-weight:700;} The phrase customarily and regularly means greater than occasional but less than constant; it includes work normally done every workweek, but does not include isolated or one-time tasks. If the person in the position earns less than the minimum required salary ($684 per week), the position is considered non-exempt and is subject to the overtime provisions of the FLSA. Wages and the Fair Labor Standards Act | U.S. Department of Labor The learned professional exemption is restricted to professions where specialized academic training is a standard prerequisite for entrance into the profession. part 541 with an effective date of January 1, 2020. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} Between7 am and until 7 pm (hours are extended to 9 pm June 1Labor Day); Up to 3 hours, including Fridays on a school day; up to 18 hours in a school week; Up to 8 hours on a non-school day; up to 40 hours in a non-school week. The best evidence of meeting this requirement is having the appropriate academic degree. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. PDF FLSA Exemption Test Worksheet - Jacksonville State University Be sure that managers and nonexempt employees are trained on how to log and manage hours, and understand what constitutes overtime pay in the state and city that employees are working in. An employee does not exercise discretion and independent judgment with respect to matters of significance merely because the employer will experience financial losses if the employee fails to perform the job properly. This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations. Here is a guide from the Department of Labor on FLSA methods employees may take to recover unpaid minimum wage or overtime pay: (1) The Wage and Hour Division may supervise payment of back wages. Fact Sheet #17C: Exemption for Administrative Employees Under the Fair To determine if an employer has met the "more than one and one-half times the applicable minimum wage" condition, the employer may divide the employee's total earnings attributed to the pay period by the employee's total hours worked during such pay period. Drivers who deliver products and also sell such products may qualify as exempt outside sales employees only if the employee has a primary duty of making sales. Additionally, dont assume your IT department is automatically exempt just because this exemption has computer in its name. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } *The DOL rule scheduled to go into effect on December 1, 2016 would have been raised the FLSA exempt salary threshold to $913 per week ($47,476 12-month annual). The content of this publication is provided for informational purposes only and does not contain or constitute tax or legal advice. Let's look at how to use it.