Duties Test

What is Duties Test?

The duties test is one of the key assessments under the Fair Labor Standards Act used to determine whether an employee qualifies for exempt status and is therefore not entitled to overtime pay. Rather than relying on job titles, the test examines the actual tasks and responsibilities an employee performs on a day-to-day basis.

Why Duties Test Matters

There are specific duties tests for executive, administrative, professional, computer, and outside sales exemptions, each with distinct criteria. For example, the executive exemption requires that the employee’s primary duty is managing a department and that they regularly direct the work of at least two full-time employees. HR teams must apply these tests carefully when classifying positions, as misclassification can lead to significant back-pay liability and penalties.