FLSA Exemption Analysis Worksheet

FLSA EXEMPTION ANALYSIS WORKSHEET

PURPOSE

This worksheet is designed to assist employers in analyzing whether an employee qualifies for exemption from the overtime requirements of the Fair Labor Standards Act under the "white collar" exemptions (Executive, Administrative, Professional, Computer Employee, or Outside Sales).

IMPORTANT: Following the November 15, 2024 federal court ruling vacating the DOL's 2024 salary rule, the minimum salary threshold for exempt employees has returned to $684 per week ($35,568 annually). Employers should monitor ongoing legal developments.

SECTION 1: EMPLOYEE INFORMATION

Employee Name: [________________________________]

Job Title: [________________________________]

Department: [________________________________]

Supervisor: [________________________________]

Hire Date: [__/__/____]

Date of Analysis: [__/__/____]

Analyst Name: [________________________________]

Analyst Title: [________________________________]

SECTION 2: SALARY BASIS TEST

2.1 Compensation Method

How is the employee compensated?

☐ Salary (fixed predetermined amount)
☐ Hourly
☐ Commission
☐ Piece rate
☐ Fee basis
☐ Other: [________________________________]

2.2 Current Compensation

Weekly Salary: $[________________________________]

Annual Salary: $[________________________________]

Hourly Rate (if applicable): $[________________________________]

2.3 Salary Threshold Analysis

Current Federal Minimum Salary Threshold: $684/week ($35,568/year)

☐ Employee's salary MEETS the minimum threshold
☐ Employee's salary DOES NOT MEET the minimum threshold

Note: Certain exemptions (doctors, lawyers, teachers, outside sales) do not require meeting the salary threshold.

2.4 Salary Basis Requirements

Is the employee paid on a "salary basis" per 29 CFR § 541.602?

☐ Yes - Employee receives predetermined fixed amount each pay period
☐ No - Pay varies based on hours worked or quality/quantity of work

Are there any improper deductions from salary?

☐ No improper deductions made
☐ Deductions made only in accordance with 29 CFR § 541.602(b) exceptions

Permitted Deductions (check all that apply):

☐ Absences of one or more full days for personal reasons
☐ Absences of one or more full days for sickness/disability (if bona fide plan exists)
☐ Penalties imposed in good faith for violations of safety rules of major significance
☐ Unpaid disciplinary suspensions of one or more full days for workplace conduct violations
☐ Prorated first/last week of employment
☐ Unpaid FMLA leave

Salary Basis Test Result:

☐ PASSES - Employee is paid on a salary basis
☐ FAILS - Employee is not paid on a salary basis (FLSA exemption not available)

SECTION 3: EXECUTIVE EXEMPTION ANALYSIS (29 CFR § 541.100)

3.1 Primary Duty - Management

Is the employee's primary duty management of the enterprise or a customarily recognized department or subdivision?

Management activities include (check all that apply to this position):

☐ Interviewing, selecting, and training employees
☐ Setting and adjusting rates of pay and hours of work
☐ Directing the work of other employees
☐ Maintaining production or sales records for use in supervision
☐ Appraising employees' productivity and efficiency
☐ Handling employee complaints and grievances
☐ Disciplining employees
☐ Planning the work
☐ Determining techniques to be used
☐ Apportioning work among employees
☐ Determining type of materials/supplies to be used
☐ Controlling the flow and distribution of materials
☐ Providing for safety and security of employees or property
☐ Planning and controlling budget
☐ Monitoring or implementing legal compliance measures

Describe management duties performed:
[________________________________]

Estimated percentage of time spent on management duties: [____]%

☐ Primary duty IS management
☐ Primary duty IS NOT management

3.2 Supervision of Employees

Does the employee customarily and regularly direct the work of at least two or more other full-time employees (or their equivalent)?

Total FTE Supervised: [____]

☐ Supervises 2.0 or more FTE employees
☐ DOES NOT supervise 2.0 or more FTE employees

3.3 Authority to Hire or Fire

Does the employee have authority to hire or fire other employees, OR are their suggestions and recommendations as to hiring, firing, advancement, promotion, or other change of status given particular weight?

☐ Direct authority to hire employees
☐ Direct authority to fire employees
☐ Recommendations given particular weight regarding:
☐ Hiring
☐ Firing
☐ Advancement/promotion
☐ Other status changes

☐ This requirement IS met
☐ This requirement IS NOT met

3.4 Executive Exemption Conclusion

☐ EXEMPT - All Executive exemption requirements are satisfied
☐ NON-EXEMPT - One or more Executive exemption requirements are not satisfied

SECTION 4: ADMINISTRATIVE EXEMPTION ANALYSIS (29 CFR § 541.200)

4.1 Primary Duty - Office or Non-Manual Work

Is the employee's primary duty the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer's customers?

Administrative functions include (check all that apply):

☐ Tax
☐ Finance
☐ Accounting
☐ Budgeting
☐ Auditing
☐ Insurance
☐ Quality control
☐ Purchasing
☐ Procurement
☐ Advertising
☐ Marketing
☐ Research
☐ Safety and health
☐ Personnel management/Human resources
☐ Employee benefits
☐ Labor relations
☐ Public relations
☐ Government relations
☐ Computer network, internet, database administration
☐ Legal and regulatory compliance

Describe administrative duties performed:
[________________________________]

Estimated percentage of time spent on administrative duties: [____]%

☐ Primary duty IS office/non-manual work related to management or general business operations
☐ Primary duty IS NOT office/non-manual work related to management or general business operations

4.2 Exercise of Discretion and Independent Judgment

Does the employee's primary duty include the exercise of discretion and independent judgment with respect to matters of significance?

Factors indicating discretion and independent judgment (check all that apply):

☐ Authority to formulate, affect, interpret, or implement management policies or operating practices
☐ Carries out major assignments in conducting operations of the business
☐ Performs work that affects business operations to a substantial degree
☐ Authority to commit the employer in matters that have significant financial impact
☐ Authority to waive or deviate from established policies and procedures without prior approval
☐ Authority to negotiate and bind the company on significant matters
☐ Provides consultation or expert advice to management
☐ Plans long-range or short-range business objectives
☐ Investigates and resolves matters of significance on behalf of management
☐ Represents the company in handling complaints, arbitrating disputes, or resolving grievances

Describe how discretion and independent judgment are exercised:
[________________________________]

☐ Employee DOES exercise discretion and independent judgment on matters of significance
☐ Employee DOES NOT exercise discretion and independent judgment on matters of significance

4.3 Administrative Exemption Conclusion

☐ EXEMPT - All Administrative exemption requirements are satisfied
☐ NON-EXEMPT - One or more Administrative exemption requirements are not satisfied

SECTION 5: PROFESSIONAL EXEMPTION ANALYSIS (29 CFR § 541.300)

5.1 Learned Professional (29 CFR § 541.301)

Is the employee's primary duty the performance of work requiring knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction?

☐ Law
☐ Medicine
☐ Theology
☐ Accounting
☐ Actuarial computation
☐ Engineering
☐ Architecture
☐ Teaching
☐ Various types of physical, chemical, and biological sciences
☐ Pharmacy
☐ Other: [________________________________]

Education/Credentials:
[________________________________]

Degree(s) Held: [________________________________]

License(s)/Certification(s): [________________________________]

☐ Employee's primary duty DOES require advanced knowledge in a learned profession
☐ Employee's primary duty DOES NOT require advanced knowledge in a learned profession

5.2 Creative Professional (29 CFR § 541.302)

Is the employee's primary duty the performance of work requiring invention, imagination, originality or talent in a recognized field of artistic or creative endeavor?

☐ Music
☐ Writing
☐ Acting
☐ Graphic arts
☐ Other: [________________________________]

Describe creative work performed:
[________________________________]

☐ Employee's primary duty DOES require invention, imagination, originality, or talent
☐ Employee's primary duty DOES NOT require invention, imagination, originality, or talent

5.3 Professional Exemption Conclusion

☐ EXEMPT - Learned Professional exemption requirements are satisfied
☐ EXEMPT - Creative Professional exemption requirements are satisfied
☐ NON-EXEMPT - Professional exemption requirements are not satisfied

SECTION 6: COMPUTER EMPLOYEE EXEMPTION ANALYSIS (29 CFR § 541.400)

6.1 Compensation Threshold

Is the employee compensated either:

☐ On a salary basis at not less than $684/week, OR
☐ On an hourly basis at not less than $27.63/hour

Actual hourly rate (if applicable): $[________________________________]

6.2 Primary Duty

Is the employee employed as a computer systems analyst, computer programmer, software engineer, or other similarly skilled worker?

Primary duty must consist of one or more of the following (check all that apply):

☐ Application of systems analysis techniques and procedures, including consulting with users to determine hardware, software, or system functional specifications

☐ Design, development, documentation, analysis, creation, testing, or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications

☐ Design, documentation, testing, creation, or modification of computer programs related to machine operating systems

☐ A combination of the aforementioned duties requiring the same level of skills

Describe computer-related duties performed:
[________________________________]

☐ Computer Employee exemption requirements ARE satisfied
☐ Computer Employee exemption requirements ARE NOT satisfied

6.3 Computer Employee Exemption Conclusion

☐ EXEMPT - Computer Employee exemption requirements are satisfied
☐ NON-EXEMPT - Computer Employee exemption requirements are not satisfied

SECTION 7: OUTSIDE SALES EXEMPTION ANALYSIS (29 CFR § 541.500)

Note: The Outside Sales exemption has NO salary requirement.

7.1 Primary Duty - Making Sales

Is the employee's primary duty making sales (as defined in 29 U.S.C. § 203(k)) or obtaining orders or contracts for services or facilities?

☐ Yes
☐ No

Describe sales activities:
[________________________________]

7.2 Customarily and Regularly Engaged Away from Employer's Place of Business

Is the employee customarily and regularly engaged away from the employer's place(s) of business in performing such duties?

Estimated percentage of time spent away from employer's premises: [____]%

☐ Yes - Employee customarily and regularly works away from employer's premises
☐ No - Employee primarily works at employer's premises

7.3 Outside Sales Exemption Conclusion

☐ EXEMPT - Outside Sales exemption requirements are satisfied
☐ NON-EXEMPT - Outside Sales exemption requirements are not satisfied

SECTION 8: HIGHLY COMPENSATED EMPLOYEE ANALYSIS (29 CFR § 541.601)

8.1 Compensation Threshold

Is the employee's total annual compensation at least $107,432?

Total Annual Compensation: $[________________________________]

(Must include at least $684/week paid on salary or fee basis)

☐ Meets compensation threshold
☐ Does not meet compensation threshold

8.2 Duties Test

Does the employee customarily and regularly perform at least one of the exempt duties of an executive, administrative, or professional employee?

☐ Yes - Describe: [________________________________]
☐ No

8.3 HCE Exemption Conclusion

☐ EXEMPT - Highly Compensated Employee exemption requirements are satisfied
☐ NON-EXEMPT - HCE exemption requirements are not satisfied

SECTION 9: FINAL EXEMPTION DETERMINATION

Summary of Analysis

Final Determination

☐ EXEMPT from overtime under the following exemption(s): [________________________________]

☐ NON-EXEMPT - Employee must be paid overtime for hours worked over 40 in a workweek

State Law Considerations

Applicable State: [________________________________]

State Salary Threshold (if higher): $[________________________________]

Other State Requirements: [________________________________]

☐ State law analysis completed separately
☐ More restrictive state law applies

SECTION 10: APPROVAL AND DOCUMENTATION

Prepared By

Name: [________________________________]

Title: [________________________________]

Date: [__/__/____]

Signature: _______________________________________

Reviewed By

Name: [________________________________]

Title: [________________________________]

Date: [__/__/____]

Signature: _______________________________________

Legal Review (If Applicable)

Attorney Name: [________________________________]

Date: [__/__/____]

Signature: _______________________________________

SECTION 11: SUPPORTING DOCUMENTATION

Attach the following documents:

☐ Current job description
☐ Organizational chart showing reporting relationships
☐ List of employees supervised (if applicable)
☐ Sample work product demonstrating discretion and independent judgment
☐ Educational credentials/licenses
☐ Compensation records
☐ Prior exemption analyses (if any)
☐ State law analysis (if applicable)

SOURCES AND REFERENCES

• 29 CFR Part 541 - Defining and Delimiting the Exemptions
• DOL Fact Sheet #17A: Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees
• 29 U.S.C. § 213 - Exemptions

This worksheet is provided for informational purposes only. Exemption determinations should be made with the assistance of qualified legal counsel.