FLSA Coverage and Exemption Flow Chart
This flow chart simplifies the analysis of FLSA coverage and exemption. It helps determine enterprise coverage, individual employee coverage, ministerial exceptions, and white-collar exemptions for FLSA compliance.
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Presentation Transcript
Flow Chart for FLSA Coverage and Exemption Analysis This simplified chart is neither a definitive guide nor legal advice. Please consult with an attorney regarding your specific situation.
Step 1: Enterprise coverage Does Issue: Is entire enterprise subject to FLSA? organization have receipts from commercial business > $500,000 /year? Does organization operate a school? No No No enterprise coverage, go to step 2 Y e s Y e s All employees in entire enterprise are covered, go to step 3 All employees in school enterprise are covered, go to step 3
Step 2: Individual Employee Coverage Does employee regularly engage in interstate commerce or interstate communications as part of job duties? Issue: If no enterprise coverage, is individual employee covered? Employee is not covered by FLSA. No overtime required. No Yes Employee is covered by FLSA. Go to step 3.
Step 3: Is employee excluded under ministerial exception? Do employee s duties include worship leadership or conveying church s message? Ministerial exception likely does not apply, go to step 4 Issue: Does ministerial exception apply? No Ministerial exception likely applies, no FLSA coverage or overtime required Yes
Step 4A: White-Collar Exemptions (Pt One) Is Is employee s salary more than $47,476 /year? employee paid an hourly wage? Is Go to Step 4B No employee a teacher? No Yes Y e s Y e s N o Employee is not exempt. Must pay overtime for >40 hrs/wk Employee is not exempt. Must pay overtime for >40 hrs/wk Employee is exempt. No overtime
Step 4B: White-Collar Exemption (Pt. 2) Do Do Do employee s primary duties meet test for professional exemption? employee s primary duties meet test for administrative exemption? employee s primary duties meet test for executive exemption? No No No Employee is not exempt. Must pay overtime for >40 hrs/wk Y e s Y e s Y e s Employee is exempt. No overtime Employee is exempt. No overtime Employee is exempt. No overtime
