How do I know if an employee is exempt from overtime?

Exemption generally requires meeting both a salary basis test above the federal threshold and a duties test tied to executive, administrative, professional, or certain other roles. Job titles alone do not determine exemption; actual duties matter. Employees who fail either test are non-exempt and owed overtime.

How is overtime calculated under the FLSA?

Non-exempt employees must receive at least one and one-half times their regular rate for hours worked beyond 40 in a workweek. The regular rate includes most forms of compensation, not just base pay. The FLSA does not require overtime for weekends or holidays by themselves.

How long must FLSA payroll records be kept?

Employers must keep payroll records for at least three years and records used to compute pay, such as time cards, for at least two years. Records should be accurate and accessible for Department of Labor review. State laws may require longer retention.

Free FLSA (Fair Labor Standards Act) Compliance Checklist Checklist

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FLSA (Fair Labor Standards Act) Compliance Checklist

Employer Name:

Designated Workweek:

Audit Period:

Compliance Officer:

Employee Classification

Review all employee classifications for exempt vs. non-exempt statusVerify salary basis test compliance for exempt employeesEvaluate job descriptions against actual duties performedDocument the rationale for each exempt classificationAssess independent contractor classifications for misclassification riskConfirm highly compensated employee exemption eligibility

Minimum Wage Compliance

Confirm all non-exempt employees are paid at or above the federal minimum wageVerify tipped employee pay meets FLSA requirementsReview youth minimum wage and subminimum wage certificate complianceAudit piece-rate and commission pay structures for minimum wage complianceReconcile state and local minimum wage rates with federal requirements

Overtime and Hours Worked

Verify overtime is paid at 1.5 times the regular rate for hours over 40 in a workweekCalculate the regular rate of pay correctly including all remunerationDefine and consistently apply the designated workweekTrack all compensable time including pre-shift and post-shift activitiesReview fluctuating workweek and Belo contract arrangementsAudit timekeeping records for completeness and accuracyEnsure no unauthorized automatic time deductions are applied

Recordkeeping, Posting and Child Labor

Program Governance and Training

Conduct periodic internal FLSA compliance auditsTrain managers and supervisors on FLSA requirementsEstablish a process for employees to report wage and hour concernsDevelop a remediation plan for identified FLSA violationsReview and update FLSA compliance program after regulatory changes

The complete guide

Everything you need to know

01What Is the FLSA Compliance Checklist?

The Fair Labor Standards Act sets federal rules on minimum wage, overtime pay, recordkeeping, and youth employment in the United States. This checklist helps employers verify correct worker classification as exempt or non-exempt, accurate overtime at one and one-half times the regular rate past 40 hours, proper minimum wage payment, and complete time and pay records. It is the foundation for lawful wage-and-hour practices.

02Why Use an FLSA Compliance Checklist

Misclassifying employees as exempt or failing to pay overtime is one of the most common and costly wage-and-hour mistakes, often leading to back pay, liquidated damages, and class actions. This checklist forces a deliberate review of each role against the salary and duties tests, confirms overtime and minimum wage calculations, and ensures records meet federal retention rules, sharply reducing audit and litigation risk.

03How to Use This FLSA Compliance Checklist

Review each position against the FLSA exemption criteria, checking both the salary threshold and the actual duties performed. For non-exempt staff, confirm all hours worked are captured and overtime is paid correctly. Verify pay meets the higher of federal or state minimum wage, and that required records are retained for the mandated period. Document each determination and revisit whenever roles or thresholds change.

FLSA (Fair Labor Standards Act) Compliance Checklist

FLSA (Fair Labor Standards Act) Compliance Checklist

Employee Classification

Minimum Wage Compliance

Overtime and Hours Worked

Recordkeeping, Posting and Child Labor

Program Governance and Training

Everything you need to know

01What Is the FLSA Compliance Checklist?

02Why Use an FLSA Compliance Checklist

03How to Use This FLSA Compliance Checklist

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