Who Is Exempt from the FLSA?

The FSLA, or the Fair Labor Standards Act, is a law guaranteeing certain rights to workers. According to the U.S. Department of Labor, workers’ rights under the FSLA include fair wages and overtime. The law also restricts child labor and establishes a work week as 40 hours. 

The FSLA was originally passed in 1938 to defend workers against exploitive working conditions after the Great Depression. Since then, the law has been amended numerous times.

Who is covered by the FSLA?

Though the FSLA is one of the most important labor laws, it does not apply to all workers. Smaller workplaces do not have to adhere to the law in their treatment of workers.

Those that are beholden to the law include employers with annual sales above $500,000 and those whose business involves interstate commerce. The idea of interstate commerce has been interpreted broadly by courts, and can include companies who send mail or place business calls across state lines.

The FSLA is a complicated law because there are many exceptions to provisions within it. In some cases, parts of the law may seem to contradict other parts of it.

Some states have additional laws that govern employee rights. For example, California has some of the most generous wage and hour laws in the country, but workers may also still benefit from federal regulations.

Who is exempt from the FSLA?

Even in the cases of employers who fall under the guidelines of the FSLA, some workers employed by those employers may not be covered under the law.

Employees who perform certain types of work are exempt from some FSLA protections. The FSLA allows for executive, administrative, and professional exemptions to overtime.

In the case of the executive exemption, people who work as executives and manage other workers, who have the authority to hire and fire other workers, and those who earn a salary of at least $455 per week are exempt under the law. The executive exemption also includes workers who have a 20 percent ownership in the business and are actively engaged in managing the business.

The administrative exemption includes all of those who perform office or non-manual work for a company, during the course of which the use their own discretion and judgment in work duties, and earn a salary of at least $455.

The professional exemption includes those whose work includes innovation, talent, creativity, or advanced knowledge. This may include anyone from an artist or an actor to a lawyer or an engineer. Exempt members of this group must also earn at least $455 per week.

Highly compensated employees making more than $100,000 per year are also exempt or the FSLA if they are paid at least $455 on a weekly salaried, or fee-based basis.

Additionally, people who work as contractors are not protected by the FSLA — it applies only to employees.

Can employees be improperly classified as exempt from the FSLA?

In some cases, employers may try to skirt the requirements of the FSLA. This may be done so they can try to deny overtime pay to someone who qualifies, or not pay them fairly. This may be done by assigning someone a title that does not properly reflect their work, like calling someone an executive if they are not an executive, simply to classify this person as exempt.

Some states have legal provisions that make it additionally difficult work employers to misclassify workers. California is one such state. Yet, some California employers may still attempt to misclassify workers for their own gain.

The Balance notes that most businesses are required to inform workers of their rights under the FSLA — many businesses are required to post posters for this purpose. 

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