
Getting the Overtime Duties Test Right

There are few subjects in HR compliance that garner as much buzz as overtime pay. Last year, the Department of Labor attempted to increase the minimum salary for exemption from $23,660 to $47,476. That move generated a furor that led to a 21 state lawsuit and sent shockwaves through the employment law community.
But determining overtime eligibility has always been about more than just wages. In fact, you might just call that the easy part. The so-called “duties test,” a second set of criteria, takes job responsibilities into consideration—and per some estimates, 70 to 90 percent of employers get it wrong.
The Fair Labor Standards Act, which outlines overtime rules, often reads as a puzzle. The good news? We’ve decoded it. In our free guide, Exempt vs. Nonexempt: Navigating the FLSA Duties Test, we dissect each job class and provide examples along the way. From the creative professional exemption to outside sales and beyond, this guide will help you classify employees with greater confidence than ever before.
For more information on calculating overtime and payroll in general, take a look at our Payroll Guide.

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