What factors determine if an employee is exempt under the Fair Labor Standards Act (FLSA)?

The correct answer reflects the specific criteria outlined under the Fair Labor Standards Act (FLSA) that determine whether an employee is considered exempt from minimum wage and overtime requirements. Under the FLSA, to qualify as an exempt employee, three key factors must be met: the employee must be paid on a salaried basis, earn at least $455 per week, and predominantly perform duties that are classified within specific roles, such as executive, administrative, professional, or certain computer-related positions.

This framework is designed to categorize employees who primarily engage in higher-level tasks and responsibilities, distinguishing them from non-exempt employees who are entitled to overtime pay and minimum wage protections. The emphasis on salaried status and role specificity ensures that only those jobs that are more senior or specialized are classified as exempt, maintaining a fair working environment while allowing companies the flexibility to compensate skilled workers differently.

Other factors listed in the incorrect options, such as job title, years of service, or terms of an employment contract, do not hold weight under the FLSA in determining exemption status. Therefore, focusing on the salary threshold and job duties provides a clear and legal framework for classification.