1. Flow Chart for FLSA Coverage and Exemption Analysis
This simplified chart is neither a definitive guide nor legal advice. Please consult with an attorney regarding your specific situation.

2. Step 1: Enterprise coverage
Does organization have receipts from commercial business > $500,000 /year?
Does organization operate a school?
Issue: Is entire enterprise subject to FLSA? No No
No enterprise coverage, go to step 2
Yes
Yes
All employees in entire enterprise are covered, go to step 3
All employees in school enterprise are covered, go to step 3

3. Step 2: Individual Employee Coverage
Does employee regularly engage in interstate commerce or interstate communications as part of job duties?
Issue: If no enterprise coverage, is individual employee covered?
Employee is not covered by FLSA. No overtime required. No
Yes
Employee is covered by FLSA. Go to step 3.

4. Step 3: Is employee excluded under ministerial exception?
Do employee’s duties include worship leadership or conveying church’s message?
Issue: Does ministerial exception apply?
Ministerial exception likely does not apply, go to step 4 No
Yes
Ministerial exception likely applies, no FLSA coverage or overtime required

5. Step 4A: “White-Collar” Exemptions (Pt One)
Is employee paid an hourly wage?
Is employee a teacher?
Is employee’s salary more than $47,476 /year? No
Go to Step 4B No
Yes
Yes
Yes No
Employee is not exempt. Must pay overtime for >40 hrs/wk
Employee is exempt. No overtime
Employee is not exempt. Must pay overtime for >40 hrs/wk

6. Step 4B: “White-Collar” Exemption (Pt. 2)
Do employee’s primary duties meet test for professional exemption?
Do employee’s primary duties meet test for executive exemption?
Do employee’s primary duties meet test for administrative exemption? No No No
Employee is not exempt. Must pay overtime for >40 hrs/wk
Yes
Yes
Yes
Employee is exempt. No overtime
Employee is exempt. No overtime
Employee is exempt. No overtime