Free HR Tool

FLSA Overtime Eligibility Checker

Provided by Catapult HR: determine exempt vs. non-exempt status for your workforce.

Salary Threshold Test (2025)

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Current federal salary threshold: $58,656/year ($1,128/week) for most white-collar exemptions
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Highly Compensated Employee (HCE) threshold: $151,164/year
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If an employee earns below the threshold, they are non-exempt regardless of duties
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State thresholds may be higher (CA, NY, WA, CO) — always apply the more favorable standard
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Salary must be paid on a guaranteed basis, not subject to reduction based on quality or quantity of work

Executive Exemption Duties Test

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Primary duty is managing the enterprise or a recognized department
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Customarily and regularly directs the work of two or more full-time employees
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Has authority to hire/fire or recommendations carry particular weight
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Common misclassification: assistant managers who spend most time on non-managerial tasks

Administrative Exemption Duties Test

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Primary duty is office or non-manual work related to management or business operations
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Exercises discretion and independent judgment on matters of significance
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Common misclassification: administrative assistants who follow established procedures (typically non-exempt)

Professional Exemption Duties Test

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Learned Professional: Work requires advanced knowledge in a field of science or learning, acquired through prolonged specialized study
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Creative Professional: Primary duty requires invention, imagination, or originality in a recognized artistic field
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Common misclassification: technicians or paraprofessionals without the required advanced degree

Common Misclassification Scenarios

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Salaried employees assumed exempt without duties test analysis
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Job titles used as sole basis for classification (title alone never determines status)
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Employees reclassified as independent contractors to avoid overtime
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Non-discretionary bonuses excluded from overtime rate calculations
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Comp time offered to non-exempt employees in the private sector (not permitted under FLSA)

If Misclassification Is Found

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Conduct a self-audit of all positions and document findings
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Calculate back pay owed (up to 2 years, or 3 years if willful)
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Reclassify affected employees prospectively and update HRIS records
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Issue corrected pay stubs and communicate changes to affected employees
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Consult employment counsel before making corrections to limit liability exposure
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Implement ongoing classification review process for new and changed roles

Need expert help implementing these practices? Catapult’s HR team is here for you.

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