Salary Basis Test

The Salary Basis Test is a legal standard used to determine whether an employee qualifies as exempt from overtime pay under the Fair Labor Standards Act (FLSA). To meet this test, an employee must be paid a fixed salary, not hourly wages, and earn a minimum amount (currently $684 per week). Additionally, the employee's primary duties should involve executive, administrative, or professional tasks. If these criteria are met, the employee may not be entitled to overtime pay for hours worked beyond the standard 40 hours per week.