Exempt or non-exempt? That is the question.

Misclassification under the Fair Labor Standards Act (FLSA) is one of the most costly compliance problems plaguing employers today.

Enforced by the Wage and Hour Division of the US Department of Labor, The Fair Labor Standards Act (FLSA), a federal law first passed by Congress in 1938, is the governing legislation regarding minimum wage and overtime pay standards, as well employee recordkeeping and child labor regulations.

Most employees whose jobs are covered under the FLSA are considered non-exempt, but the law does provide exemptions from both the minimum wage and overtime pay requirements for certain classes of employees.

The most commonly used exemptions under the FLSA are the five white-collar exemptions: executive, administrative, outside sales, professional and computer employees. In order to qualify for one of these exemptions, an employee’s job duties and salary must meet specific requirements, which vary for each exemption.