Updated to reflect the final overtime rule updating and revising the Fair Labor Standards Act (FLSA) overtime exemption requirements, effective January 1, 2020.
The US Department of Labor (DOL) provides employers the Model Salary Basis Policy for Exempt White-Collar Workers as an example of a salary basis policy that will meet the requirements of the "safe harbor" provision of the Fair Labor Standards Act (FLSA). Under the "safe harbor" provision, employers that inadvertently make improper deductions from the pay of exempt employees can shield themselves from overtime liability if they adopt a salary basis policy and take other steps.
Updated to reflect the overtime and recordkeeping exemption for employees of seasonal amusement and recreational establishments, effective January 1, 2018.
Use this flowchart to determine if an employee is exempt or nonexempt from the minimum wage or overtime requirements of the Fair Labor Standards Act (FLSA).