The Salary Basis Test is a criterion under the FLSA to determine if an employee is exempt from overtime, requiring a fixed salary paid regardless of hours worked.
- What is the salary basis test?
Answer: It is a criterion to determine overtime exemption under FLSA. - What are the requirements?
Answer: It requires a fixed salary above a threshold (e.g., $684/week in 2025). - What does it ensure?
Answer: It ensures consistent pay regardless of hours. - Who applies it?
Answer: Employers and HR apply it to classify employees. - What are the implications?
Answer: Failure affects overtime eligibility.
