FLSA Exempt/Nonexempt Questionnaire

Navigating employment laws and regulations can be complex for organizations, particularly in determining whether employees are exempt or nonexempt under the Fair Labor Standards Act (FLSA). The FLSA Exempt/Nonexempt Questionnaire is a valuable tool for evaluating employee classifications and understanding the implications.

Understanding the FLSA Classification

The FLSA classifies employees as either exempt or nonexempt based on specific criteria related to job duties, salary level, and salary basis. Exempt employees are not entitled to overtime pay, while nonexempt employees must receive overtime pay for hours worked beyond 40 in a workweek. It is essential for organizations to accurately classify their employees to avoid potential legal issues and financial penalties.

FLSA Exempt/Nonexempt Classification Questionnaire Template

Employee Information:

• Name: ____________________________________________
• Job Title: ___________________________________________
• Department: _________________________________________
• Supervisor: _________________________________________
• Date: _______________________________________________

Job Duties and Responsibilities:

1. Primary Duty:
   • Describe the primary duty of the position:
2. Decision-Making Authority:
   • Does the employee have authority to make decisions of significance? (Yes/No)
     • If yes, please provide examples:
3. Supervisory Duties:
   • Does the employee supervise other employees? (Yes/No)
     • If yes, how many employees does the employee supervise?
     • Does the employee have the authority to hire or fire other employees, or make recommendations that carry significant weight? (Yes/No)
       • If yes, please provide examples:
4. Discretion and Independent Judgment:
   • Does the employee exercise discretion and independent judgment with respect to matters of significance? (Yes/No)
     • If yes, please provide examples:

Salary Basis:

1. Salary Information:
   • Is the employee paid on a salary basis? (Yes/No)
     • If yes, what is the employee’s annual salary?
2. Salary Threshold:
   • Does the employee’s salary meet the minimum threshold as defined by the FLSA? (Yes/No)
     • Current minimum threshold: $_________________________

Exemption Categories:

1. Executive Exemption:
   • Does the employee primarily manage the enterprise or a recognized department or subdivision? (Yes/No)
   • Does the employee customarily and regularly direct the work of at least two or more other full-time employees or their equivalent? (Yes/No)
   • Does the employee have the authority to hire or fire other employees or have significant input in such decisions? (Yes/No)
2. Administrative Exemption:
   • Does the employee perform office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers? (Yes/No)
   • Does the employee exercise discretion and independent judgment with respect to matters of significance? (Yes/No)
3. Professional Exemption:
   • Does the employee perform work requiring advanced knowledge in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction? (Yes/No)
   • Does the employee’s work require consistent exercise of discretion and judgment? (Yes/No)
4. Computer Employee Exemption:
   • Is the employee employed as a computer systems analyst, computer programmer, software engineer, or other similarly skilled worker in the computer field? (Yes/No)
   • Does the employee’s primary duty consist of:
     • The application of systems analysis techniques and procedures? (Yes/No)
     • The design, development, documentation, analysis, creation, testing, or modification of computer systems or programs? (Yes/No)
     • The design, documentation, testing, creation, or modification of computer programs related to machine operating systems? (Yes/No)
     • A combination of the aforementioned duties, requiring the same level of skills? (Yes/No)
5. Outside Sales Exemption:
   • Is the employee’s primary duty making sales or obtaining orders or contracts for services or for the use of facilities? (Yes/No)
   • Is the employee customarily and regularly engaged away from the employer’s place or places of business in performing such primary duty? (Yes/No)

Conclusion and Classification Determination:

• Based on the responses provided above, this position is classified as (Exempt/Nonexempt) under the FLSA.

Reviewer’s Signature:

• Name: ____________________________________________
• Title: _____________________________________________
• Date: _____________________________________________

Approval:

• Human Resources Approval: (Yes/No)
  • If no, please provide reason:

Notes:

• This questionnaire should be reviewed periodically to ensure compliance with any changes in the FLSA regulations.
• Additional documentation and detailed job descriptions should be maintained to support the classification decision.

This template serves as a guideline and may need to be adjusted based on specific organizational needs and the nature of the positions being evaluated.

Importance of the FLSA Exempt/Nonexempt Questionnaire

The FLSA Exempt/Nonexempt Questionnaire serves as a tool for organizations to assess whether their employees meet the criteria for exempt status under the FLSA. By asking relevant questions about job responsibilities, compensation structure, and working conditions, the questionnaire helps organizations make informed decisions about employee classification. This process is critical for ensuring compliance with the FLSA and protecting the organization from potential liabilities.

Navigating the FLSA Exempt/Nonexempt Questionnaire

Job Duties Evaluation:

Organizations should carefully evaluate employees' job duties to determine whether they align with the FLSA criteria for exemption. This includes assessing the level of decision-making authority, managerial responsibilities, and specialized skills required for the position. Job descriptions should be reviewed and updated to accurately reflect the nature of the work performed by each employee.

Salary Level Assessment:

The FLSA sets minimum salary thresholds for exempt employees, which must be met for employees to qualify for exempt status. Organizations should review employees' salaries to ensure they meet or exceed the minimum requirements. In cases where employees fall below the threshold, organizations must consider reclassifying them as nonexempt and adjusting their compensation accordingly.

Compliance with State Regulations:

In addition to federal FLSA requirements, organizations must also comply with state-specific regulations regarding employee classification. Some states have their own criteria for determining exempt status, which may differ from federal guidelines. Organizations should familiarize themselves with state laws and ensure they are in full compliance to avoid legal issues.

Conclusion

In conclusion, properly classifying employees as exempt or nonexempt helps avoid legal issues and penalties. This questionnaire helps determine overtime pay eligibility and clarifies job duties. Using the questionnaire shows a commitment to ethical operations and a positive work environment. Taking proactive steps to address this classification benefits employee relations, legal compliance, and business success.