The Fair Labor Standards Act (FLSA) governs wage and hour laws in the United States, establishing criteria for employee classification, including exemptions from overtime pay. As HR professionals, it is crucial to accurately assess whether your employees qualify for these exemptions to ensure compliance and mitigate potential legal risks. We have created an FLSA Exemption Questionnaire template for you to streamline your evaluation process, allowing you to effectively determine exemption eligibility based on specific job duties and responsibilities.
FLSA Exemption Questionnaire Template
Employee Name:
Job Title:
Department:
Supervisor Name:
Date:
1. Position Classification
- Is this position classified as:
- [ ] Full-time
- [ ] Part-time
- [ ] Temporary
- [ ] Seasonal
2. Salary Basis Test
- Does the employee receive a guaranteed salary of at least $684 per week?
- Is the salary fixed and not subject to reduction based on the quality or quantity of work performed?
3. Primary Duties Test
- Does the employee's primary duty involve performing office or non-manual work directly related to the management or general business operations of the employer or its customers?
4. Executive Exemption
- Does the employee manage a department or subdivision of the organization?
- Does the employee supervise at least two full-time employees (or the equivalent)?
- Does the employee have the authority to hire or fire other employees, or do their recommendations regarding hiring, firing, or advancement carry significant weight?
5. Administrative Exemption
- Does the employee primarily perform office or non-manual work related to general business operations or management?
- Does the employee exercise discretion and independent judgment regarding matters of significance?
6. Professional Exemption
- Does the employee perform work that requires advanced knowledge in a field of science or learning, customarily acquired by a prolonged course of specialized intellectual instruction?
- Is the employee’s work predominantly intellectual and varied in character?
7. Computer Employee Exemption
- Is the employee employed as a computer systems analyst, programmer, software engineer, or other similarly skilled worker?
- Does the employee apply systems analysis techniques and procedures, including consulting with users to determine hardware, software, or system functional specifications?
- Does the employee design, develop, document, analyze, create, test, or modify computer systems or programs?
8. Outside Sales Exemption
- Does the employee primarily make sales or obtain orders or contracts for services outside of the employer’s primary place of business?
- Is the employee customarily and regularly engaged away from the employer’s place of business in performing their sales work?
9. Conclusion
Based on the responses above, does the employee appear to meet the criteria for exemption under the FLSA?
Prepared By:
Date:
Signature:
Note: This questionnaire helps to assess whether a position qualifies for an exemption under the FLSA, focusing on salary, primary duties, and the type of work performed.
Key Components of the Questionnaire
1. Employee Information
Start by collecting basic employee and job information, such as:
- Employee name
- Job title
- Department
- Supervisor
- Date of questionnaire completion
2. Salary Basis Test
To qualify for exemption under the FLSA, employees generally must be paid a fixed salary that meets the minimum threshold set by the Department of Labor. As of 2020, this threshold is $684 per week. The questionnaire includes questions to determine whether:
- The employee receives a guaranteed salary of at least $684 per week.
- The salary is fixed and not reduced based on work quality or quantity.
If an employee does not meet the salary basis requirement, they are typically classified as non-exempt.
3. Primary Duties Test
Even if an employee meets the salary requirement, their job duties must qualify for an exemption. The FLSA outlines five main exemptions:
- Executive Exemption
- Administrative Exemption
- Professional Exemption
- Computer Employee Exemption
- Outside Sales Exemption
Each exemption has specific criteria regarding job responsibilities. The questionnaire breaks down these criteria to evaluate an employee’s role against the FLSA requirements.
4. Executive Exemption
The executive exemption applies to employees who manage a department or division, supervise at least two full-time employees, and have a role in hiring or firing decisions. The questionnaire assesses whether the employee:
- Manages a recognized department or subdivision.
- Directly supervises two or more full-time employees.
- Exercises decision-making authority on personnel matters.
These criteria must be fully met to classify the employee as exempt under the executive exemption.
5. Administrative Exemption
Employees in administrative roles must primarily perform office or non-manual work related to general business operations and exercise discretion in significant business matters. The questionnaire evaluates:
- Whether the employee’s work is related to management or business operations.
- Whether the employee exercises independent judgment on important matters.
This exemption is ideal for mid-level managers and professionals who handle substantial decision-making responsibilities.
6. Professional Exemption
The professional exemption applies to employees whose work requires advanced knowledge in a field of science or learning, typically acquired through higher education. The questionnaire helps assess if:
- The employee’s work is predominantly intellectual.
- The employee has specialized knowledge in their field.
Professions like doctors, lawyers, and engineers commonly fall under this exemption.
7. Computer Employee Exemption
Employees working in specific computer-related roles, such as systems analysts or software developers, may qualify for this exemption. The questionnaire ensures the employee’s duties involve:
- Systems analysis, programming, or designing computer systems.
- Work requiring advanced technological skills and knowledge.
8. Outside Sales Exemption
The outside sales exemption applies to employees primarily making sales outside the employer’s business premises. The questionnaire assesses:
- Whether the employee regularly works away from the office.
- Whether their main responsibility is making sales or securing contracts.
Employees who spend a majority of their time conducting sales in the field may qualify under this exemption.
Best Practices for Using the FLSA Exemption Questionnaire
- Review Job Descriptions: Ensure job descriptions are accurate and align with the duties described in the questionnaire. An up-to-date job description will help in accurately assessing the employee’s exemption status.
- Consult Legal Guidance: Since misclassification can lead to legal consequences, HR professionals should consult with legal counsel or an employment law expert when uncertain about an employee’s classification.
- Conduct Regular Reviews: Employee roles evolve over time, and regular reviews of FLSA classifications ensure compliance with current laws and regulations. Consider conducting annual reviews, especially when employees are promoted or have significant changes in their duties.
- Document Everything: Keep a record of completed questionnaires and any supporting documents. These records provide evidence of the steps taken to determine FLSA exemption and can help defend against potential claims of misclassification.
Conclusion
In conclusion, the FLSA exemption questionnaire is an essential tool for HR professionals to accurately assess employee classifications and ensure compliance with federal labor laws. By using the provided questionnaire template, your team can systematically evaluate job roles, gather relevant information, and make informed decisions regarding overtime eligibility and pay structures. It is imperative to integrate this questionnaire into your review processes to maintain legal compliance and avoid potential liabilities associated with misclassifications.
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