Learn how a bank teller working 38 hours per week and earning $36,000 annually would be classified under the Fair Labor Standards Act (FLSA). Understand the salary and duties tests for exempt vs nonexempt status.
Table of Contents
Question
How would a bank teller who works 38 hours per week and is paid $36000 per year be classified under the Fair Labor Standards Act (FLSA)?
Answer
Nonexempt employee, According to DOL Fact Sheet #17, an employee would need to meet the salary requirement of $684 per week ($35568 per year) in order to be exempt. The employee would also need to fit into one of the white-collar exemptions (executive, administrative, professional, outside sales, and, depending on the state, computer employees). A bank teller would most likely not fit into one of the white-collar exemptions, regardless of making above the salary threshold.
Explanation
A bank teller who works 38 hours per week and is paid $36,000 per year would be classified as a nonexempt employee under the Fair Labor Standards Act (FLSA).
According to the Department of Labor’s Fact Sheet #17, to qualify for exempt status, an employee must meet both a salary test and a duties test:
- Salary Test: The employee must be paid at least $684 per week ($35,568 per year) on a salary basis. While the bank teller earns slightly above this threshold at $36,000 annually, they must also meet the duties test.
- Duties Test: The employee’s primary job duties must fall under one of the FLSA’s white-collar exemptions: executive, administrative, professional, outside sales, or (depending on the state) computer employees. A bank teller’s typical responsibilities, such as processing customer transactions, handling cash, and balancing drawers, do not fit into any of these exempt categories.
Therefore, even though the bank teller earns more than the salary threshold, their job duties do not qualify them for exempt status. As a result, the bank teller would be classified as a nonexempt employee under the FLSA and would be entitled to overtime pay for any hours worked over 40 in a workweek.
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