The Fair Labor Standards Act (FLSA) establishes federal minimum wage and overtime standards for most US workers. Proper employee classification is necessary to determine if an employee is eligible for mandatory overtime pay.
What is FLSA Exemption Status?
Under federal and state wage and hour laws, employees are categorized as either "exempt" or "non-exempt".
Non-exempt Employees: Employees whose work is covered by the FLSA. These employees are typically paid by the hour and are generally eligible for overtime pay. They must receive at least time and one-half their regular rate of pay for all hours worked over 40 hours in a workweek.
Exempt Employees: Employees who are typically paid a consistent salary regardless of hours worked and are exempt from FLSA minimum wage and overtime pay requirements.
Job titles alone do not determine exemption status. To claim an employee is exempt from the FLSA's minimum wage and overtime protections, the employee’s specific job duties and salary must meet all the requirements defined in the Department of Labor's regulations.
Determining FLSA Exemption Status
Infographic
We've created the below infographic as a guide for hiring managers when determining the exemption status of a W2 worker.
In-Platform Classification Process
To classify a role as exempt or non-exempt within the YunoJuno platform, follow these steps during assignment creation:
During the contract creation stage, there's a field labelled 'FLSA Classification'
Select either Exempt or Non-exempt for the role based on the required salary level and primary job duties (using the above infographic as a guide)
If the role is selected as Exempt, the contract will be reviewed by our compliance team prior to the contract being offered
If the role is selected as Non-exempt, then the contract can be offered to the worker immediately.
Federal vs. state thresholds
The highest applicable threshold will be used in determining an employee's exempt status. If an applicable US State or Local threshold is higher than the applicable Federal Threshold, the State or Local Threshold will apply.
Table of 2026 thresholds by state
Table of 2026 thresholds by state
State | Weekly Salary Threshold | Computer Professional Hourly Threshold |
Federal (Default) | $684.00 | $27.63 |
Alabama | Federal threshold applies | Federal threshold applies |
Alaska | $1,040.00 (Jan 1) / $1,120.00 (July 1) | Salary Required (No hourly exemption) |
Arizona | Federal threshold applies | Federal threshold applies |
Arkansas | Federal threshold applies | Federal threshold applies |
California | $1,352.00 | $58.85 |
Colorado | $1,111.23 | $34.85 |
Connecticut | Federal threshold applies | Federal threshold applies |
Delaware | Federal threshold applies | Federal threshold applies |
District of Columbia | Federal threshold applies | Federal threshold applies |
Florida | Federal threshold applies | Federal threshold applies |
Georgia | Federal threshold applies | Federal threshold applies |
Hawaii | $923.08 | Federal threshold applies |
Idaho | Federal threshold applies | Federal threshold applies |
Illinois | Federal threshold applies | Federal threshold applies |
Indiana | Federal threshold applies | Federal threshold applies |
Iowa | Federal threshold applies | Federal threshold applies |
Kansas | Federal threshold applies | Federal threshold applies |
Kentucky | Federal threshold applies | Federal threshold applies |
Louisiana | Federal threshold applies | Federal threshold applies |
Maine | $871.16 | Federal threshold applies |
Maryland | Federal threshold applies | Federal threshold applies |
Massachusetts | Federal threshold applies | Federal threshold applies |
Michigan | Federal threshold applies | Federal threshold applies |
Minnesota | Federal threshold applies | Federal threshold applies |
Mississippi | Federal threshold applies | Federal threshold applies |
Missouri | Federal threshold applies | Federal threshold applies |
Montana | Federal threshold applies | Federal threshold applies |
Nebraska | Federal threshold applies | Federal threshold applies |
Nevada | Federal threshold applies | Federal threshold applies |
New Hampshire | Federal threshold applies | Federal threshold applies |
New Jersey | Federal threshold applies | Federal threshold applies |
New Mexico | Federal threshold applies | Federal threshold applies |
New York (NYC/LI/Westchester) | $1,275.00 | Salary Required (No hourly exemption) |
New York (Rest of State) | $1,199.10 | Salary Required (No hourly exemption) |
North Carolina | Federal threshold applies | Federal threshold applies |
North Dakota | Federal threshold applies | Federal threshold applies |
Ohio | Federal threshold applies | Federal threshold applies |
Oklahoma | Federal threshold applies | Federal threshold applies |
Oregon | Federal threshold applies | Federal threshold applies |
Pennsylvania | Federal threshold applies | Federal threshold applies |
Rhode Island | Federal threshold applies | Federal threshold applies |
South Carolina | Federal threshold applies | Federal threshold applies |
South Dakota | Federal threshold applies | Federal threshold applies |
Tennessee | Federal threshold applies | Federal threshold applies |
Texas | Federal threshold applies | Federal threshold applies |
Utah | Federal threshold applies | Federal threshold applies |
Vermont | Federal threshold applies | Federal threshold applies |
Virginia | Federal threshold applies | Federal threshold applies |
Washington | $1,541.70 | $59.96 |
West Virginia | Federal threshold applies | Federal threshold applies |
Wisconsin | Federal threshold applies | Federal threshold applies |
Wyoming | Federal threshold applies | Federal threshold applies |
Exceptions to the process flow
Lawyer, doctor, teacher exemption
Lawyer exemption: An employee holding a valid license to practice law is exempt under the Fair Labor Standards Act if the employee is actually engaged in the practice of law.
Doctor exemption: An employee holding a valid license to practice medicine is exempt under the Fair Labor Standards Act if the employee is actually engaged in the practice of medicine.
Teacher exemption: Teachers qualify for the professional exemption under the Fair Labor Standards Act if they have a primary duty of teaching, tutoring, instructing, or lecturing “in the activity of imparting knowledge” in an educational establishment.
The Lawyer, Doctor and Teacher exemptions have no minimum salary requirements.
Outside Sales Exemption
The employee must meet both requirements:
The primary duty must be making sales or obtaining orders/contracts for services or for the use of facilities.
The employee must be customarily and regularly engaged away from the employer's place or places of business.
The outside sales exemption has no minimum salary requirements.
Highly Compensated Employees (HCE)
An employee may qualify as exempt if they perform office or non-manual work and earn total annual compensation of $107,432 or more (which must include at least $684 per week paid on a salary or fee basis). They must also customarily and regularly perform at least one of the exempt duties of an executive, administrative, or professional employee.
Troubleshooting/FAQ
Q: Are there stricter requirements for specific states?
Yes, the Fair Labor Standards Act (FLSA) provides the minimum standards for wages and overtime, which must be followed unless a federal, State, or municipal law establishes a higher minimum wage or a lower maximum workweek. Employers must comply with the highest or most protective standard that applies to the employee.
Q: I'm not sure if an employee is exempt or not. What should I do?
The determination of whether an employee is exempt or non-exempt is complex and depends on whether the employee’s specific job duties and salary meet all the requirements outlined in the Department of Labor's regulations.
If you are unsure whether an employee qualifies for an exemption, you must assume the employee is non-exempt to maintain compliance with minimum wage and overtime requirements.