What is the Salary Requirement for Exempt Employees Under FLSA

What is the Salary Requirement for Exempt Employees Under FLSA?

November 01, 2021
By Peter Friedmann

The Federal Labor Standards Act (FLSA) is a federal law that, among other things, requires employers to pay almost every employee the federal minimum wage as defined by the FLSA. The FLSA also covers overtime pay for all hours that an employee works over 40 hours in a workweek for those individuals that are entitled to receive overtime pay.

The FLSA does allow for exemptions from the overtime pay requirements. These exemptions cover certain “employees employed as bona fide executive, administrative, professional and outside sales employees.”  These exemptions can be complex so it is always best to discuss your situation with an FLSA overtime lawyer, to understand whether an exemption applies to you based on your job duties.

To qualify for an exemption, the employees listed above must be paid a specific minimum salary for exempt employees in 2021 and meet certain tests related to their job duties.

What is the Salary Requirement for Exempt Employees under FLSA?

So what is the salary requirement for exempt employees under the FLSA?

According to the FLSA, an employee “generally must be paid at not less than $684 per week on a salary basis”. The salary basis means that an employee will regularly be paid a predetermined amount of money per pay period. This predetermined amount cannot be changed because of things like changes in the quality of an employee’s work and they must receive their full salary for any week that they perform work.

The minimum salary for exempt employees in 2021 is slightly different for exempt computer employees. They can be paid at $684 on a salary basis or at an hourly basis “at a rate not less than $27.63 an hour.”

The FLSA minimum salary for exempt employees for 2021 sits at $684.00 per week. This is a new change that went into effect in January 2020 and the requirement will remain the same throughout 2021.

Salary Exempt vs. Non-Exempt

An exempt employee is someone who is not eligible or entitled to overtime pay according to the FLSA. They are typically salaried employees, and as discussed previously, must meet the FLSA minimum salary for exempt employees of nothing less than $684 a week. More exemption details can be found here.

A non-exempt employee is eligible for overtime pay for all hours worked beyond 40 hours per week.

The way that a business will determine if an employee is salary exempt vs. non-exempt is through 2 tests.

  • The duties test outlines the kind of work an employee is doing
  • The salary test is what determines the wage

Speak with an FLSA Attorney for Further Questions

If you have questions related to whether you are salary exempt or non-exempt or other specific queries tied to the FLSA minimum salary for exempt employees in 2021, reach out to The Friedmann Firm today! We offer free and fully confidential consultations with an experienced FLSA attorney on all things related to the FLSA, including the Ohio minimum salary for exempt employees in 2021.

We are based in Columbus, Ohio and you can easily get in contact with an FLSA attorney online or at 614-610-9755.