Updated May 10, 2024
The Fair Labor Standards Act (FLSA) Exemption for
Executive, Administrative, and Professional (EAP) Employees
The Fair Labor Standards Act (FLSA) establishes a federal
week ($35,568 annually) for the EAP exemption to apply.
minimum wage for most private and public sector
This salary threshold, which applies in most cases, is
employees and generally requires overtime compensation at
referred to as the standard threshold. The weekly salary rate
a rate of one and one-half times an employee’s regular
is lower—$455 per week—for employees (other than those
hourly rate for hours worked beyond a forty-hour
employed by the federal government) in the
workweek. While broadly providing these employment
Commonwealth of the Northern Mariana Islands, Guam,
protections to most employees, the FLSA also includes
Puerto Rico, or the U.S. Virgin Islands. The weekly salary
exemptions for certain specified employees. Section
rate is $380 for employees (other than those employed by
13(a)(1) of the FLSA exempts from the statute’s minimum
the federal government) in American Samoa.
wage and overtime pay requirements bona fide executive,
administrative, and professional (EAP) employees, as well
Under DOL’s final rule, which takes effect on July 1, 2024,
as outside sales and computer employees, and authorizes
the EAP salary threshold is scheduled to increase to $844
the Secretary of Labor to “define and delimit” this
per week ($43,888 per year) on July 1, 2024, and to $1,128
exemption through regulations.
per week ($58,656 per year) on January 1, 2025. Future
updates are to take place every three years, starting July 1,
The Department of Labor (DOL) first issued regulations to
2027, and will set the salary threshold equal to the 35th
implement the EAP exemption in 1938. These regulations
percentile of weekly earnings of full-time salaried workers
identified job duties that the employee had to perform to
in the lowest-wage Census Region, which in 2024 was the
qualify for the exemption. DOL regulations issued in 1940
South.
added a minimum salary threshold for the exemption.
Although the salary and duty standards have changed over
Salary Rules for Certain Occupations
time, they continue to form the basis of the exemption. In
The EAP exemption salary test does not apply to
general, to be considered an exempt EAP employee, the
physicians, lawyers, teachers, and outside sales workers
employee must satisfy a salary test and a duties test.
who may be exempt if they satisfy other duty and credential
requirements. Academic administrative personnel may be
On April 26, 2024, DOL published a final rule that revised
exempt if paid at a rate of not less than the amounts
the salary thresholds for the exemption (in two phases) and
identified above or a salary at least equal to the entrance
established a methodology for updating the salary
salary for teachers in the educational establishment at which
thresholds every three years, starting July 1, 2027. This In
they are employed. Employees in the motion picture
Focus examines the salary and duties tests that are used to
producing industry need not be paid on a salary basis so
identify exempt EAP employees and reviews how the salary
long as they are compensated at a base rate of at least
thresholds have changed over the last 20 years.
$1,043 per week (or a proportionate amount based on the
number of days worked) and the duties test requirements
EAP Exemption Salary Test
(described below) are met. DOL’s final rule did not adjust
In general, to qualify for the EAP exemption, an employee
this base rate, which was established in 2019.
must (1) be paid on a salary basis and (2) be paid a salary
that is above an amount determined by DOL regulations.
EAP Exemption Duties Test
In addition to satisfying the salary test, an employee must
The FLSA considers an employee to be paid on a salary
perform specified duties to qualify for the EAP exemption.
basis if the employee regularly receives a predetermined
These duties vary based on whether an individual is an EAP
amount on a weekly or less frequent basis that is not subject
employee. DOL’s regulations identify the following duties
to reduction either because of variations in the quality or
for certain exempt EAP employees:
quantity of the work performed or because of absences
occasioned by the employer or the operating requirements
Executive Employees
of the business. DOL regulations provide that the EAP
• The employee’s primary duty is “management of the
exemption may apply to administrative and professional
enterprise in which the employee is employed or of a
employees compensated on a fee basis (i.e., the employee is
customarily recognized department or subdivision
paid an agreed sum for a single job regardless of the time
thereof.”
required for its completion).
• The employee “customarily and regularly directs the
DOL’s regulations provide that until July 1, 2024, an
work of two or more other employees.”
employee must be compensated on a salary basis (or fee
basis where permitted) at a rate of not less than $684 per
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link to page 2 The Fair Labor Standards Act (FLSA) Exemption for Executive, Administrative, and Professional (EAP) Employees
• The employee “has the authority to hire or fire other
particular, DOL rules allowed for a long test, which paired
employees or whose suggestions and recommendations
a lower salary threshold with quantitative limits on an
as to the hiring, firing, advancement, promotion or any
employee’s time in nonexempt work, and a short test,
other change of status of other employees are given
which had a higher salary threshold but applied a less
particular weight.”
stringent duties test that did not include a quantitative limit
on nonexempt work. The 2004 rule applied a single salary
Administrative Employees
threshold ($455 per week), and created a separate salary
• The employee’s primary duty is “the performance of
threshold and duties requirement for HCEs.
office or non-manual work directly related to the
management or general business operations of the
The 2016 rule maintained the standard duties test for the
employer or the employer’s customers.”
EAP exemption. It raised the standard and HCE salary
•
thresholds to $913 per week and $134,004 per year,
The employee’s primary duty “includes the exercise of
respectively. DOL never enforced the rule and, before the
discretion and independent judgment with respect to
rule could take effect, it was challenged in court. The U.S.
matters of significance.”
District Court for the Eastern District of Texas in Nevada v.
Professional Employees
U.S. Department of Labor blocked implementation.
• The employee’s primary duty is “the performance of
The 2019 final rule formally rescinded the 2016 final rule.
work: (i) [r]equiring knowledge of an advanced type in a
It also increased the salary threshold from $455 per week to
field of science or learning customarily acquired by a
$684 per week; increased the annual salary threshold for the
prolonged course of specialized intellectual instruction;
HCE exemption from $100,000 to $107,432; allowed up to
or (ii) [r]equiring invention, imagination, originality or
10% of the standard salary threshold to be comprised of
talent in a recognized field of artistic or creative
nondiscretionary bonuses, incentive payments, and
endeavor.”
commissions; maintained the salary thresholds set by the
2004 rule for the U.S. territories; and increased the base rate
Highly Compensated Employees (HCEs)
level for employees in the motion picture producing
Certain highly compensated EAP employees may be
industry from $695 per week to $1,043 per week.
exempt from the FLSA’s overtime pay requirement even if
they do not perform all of the duties identified above. Until
Table 1. Summary of Salary Thresholds for EAP
July 2024, an employee paid on a salary basis with total
Exemptions in the 2004, 2016, 2019, and 2024 Rules
annual compensation of at least $107,432 is exempted from
the requirement if the employee “customarily and

2004
2016
2019
2024
regularly” performs any one or more of these duties. DOL
Standard
maintains that a high level of compensation “is a strong
$455
$913
$684
7/1/2024:
(per week)
indicator of an employee’s exempt status, thus eliminating
$884
the need for a detailed analysis of the employee’s job
1/1/2025:
duties.” The agency describes the phrase customarily and
$1,128
regularly to mean “a frequency that must be greater than
HCE
occasional but which, of course, may be less than constant.”
$100,000
$134,004
$107,432 7/1/2024:

(per year)
$132,96
Under DOL’s final rule, the HCE salary threshold is
1/1/2025:
scheduled to increase to $132,964 per year on July 1, 2024,
$151,164
and to $151,164 per year on January 1, 2025. Future
U.S.
$455;
$913;
$455;
$455;
updates are to set the salary threshold equal to the
Territories
AS: $380
AS: $767
AS: $380
AS: $380
annualized 85th percentile of weekly earnings of full-time
(per week)
salaried workers nationally and are to take place every three
years, starting July 1, 2027.
MPPI
$695
$1,397
$1,043
$1,043
Prior DOL Rulemaking
(per week)
The level at which the salary thresholds are drawn plays a
Sources: CRS analysis of 81 Federal Register 32391 (May 23, 2016),
decisive role in determining the EAP exemption’s scope.
84 Federal Register 51230 (September 27, 2019), and 89 Federal
All else equal, a lower salary threshold is associated with
Register 32,842 (April 26, 2024).
greater coverage of the exemption and fewer employees
Notes: The 2016 rule was finalized but did not become effective and
who would be entitled to overtime pay. Prior to 2024, DOL
was eventual y invalidated by a federal district court. “U.S.
updated the EAP salary thresholds nine times, most recently
Territories” include Puerto Rico, Guam, the U.S. Virgin Islands, the
in 2019. DOL rules that updated the salary thresholds in
Commonwealth of the Northern Mariana Islands, and American
2004, 2016, and 2019 are discussed in chronological order
Samoa. HCE = highly compensated employees; AS = American
below. Summary information is in Table 1.
Samoa; MPPI = motion picture producing industry.
The 2004 rule created a single standard duties test and a
Sarah A. Donovan, Specialist in Labor Policy
single salary level for the EAP exemption. For several years
Jon O. Shimabukuro, Legislative Attorney
prior to the 2004 rule, DOL had employed a dual approach
to evaluating an employee’s EAP exemption status. In
IF12480
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The Fair Labor Standards Act (FLSA) Exemption for Executive, Administrative, and Professional (EAP) Employees


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