Fair Labor Standards Act classification affects what compensation information you must include in job postings, and what claims you may face if a role is misclassified. As pay transparency laws have brought compensation to the forefront, FLSA classification has become a closely related concern for HR compliance teams.
Exempt vs non-exempt: the basics
Non-exempt employees must receive at least the federal minimum wage and overtime pay at 1.5x for hours over 40 in a workweek. Exempt employees are not entitled to overtime. To qualify as exempt, an employee must meet three tests: salary basis (predetermined fixed salary), salary level (currently $684 per week or $35,568 annually, per the Department of Labor), and a duties test (executive, administrative, or professional role).
What this means for job postings
If you post a non-exempt (hourly) role, pay transparency states require you to include an hourly rate range rather than an annual salary. If the role is exempt, annual salary range is standard. Misrepresenting classification in a posting can compound a misclassification claim by creating documentary evidence of the employer's understanding of the role.
Common misclassification patterns in job ads
- Posting a salary for a role whose duties do not meet the FLSA duties test
- Advertising unpaid internships that do not meet the DOL six-factor primary beneficiary test
- Posting a contractor role that functions as employment
Role Canary checks FLSA classification signals in your job ad language automatically.
Start free trialState overtime laws
California has daily overtime rules (over 8 hours per day, not just 40 hours per week). New York has its own salary thresholds. Always apply the more protective of state or federal requirements. See our State Law Roundup for current state-level requirements.