October 29, 2026
Are Your Exempt Employees Properly Classified? Court Affirms U.S. DOL’s Definition of “Primary Duty” for FLSA Analysis
A former employee sued his previous employer for failing to pay him overtime under the Fair Labor Standards Act (FLSA) and for breach of contract. The 6th U.S. Circuit Court of Appeals (covering MI, OH, KY TN) found in favor of the former employer on both counts. That’s right, this time I’m sharing a story that ends with good news for the employer! The court found the employer did properly classify the employee as FLSA exempt and there was no contract of employment.
Consider the following.
Offer letters. Include key points in yours! The court noted that the employer’s offer letter expressly noted (1) the employee’s FLSA classification as exempt; (2) that “employment with [employer] is on an at-will basis; and (3) “twice stated that the offer ‘d[id] not constitute an employment contract.’” Thus, there was no “meeting of the minds” that any employment contract existed.
Job Title Does Not Determine FLSA Status. Consider the work the employee actually performs, not the title you attach to the job. The court reminded us that, “job titles vary widely and change quickly… and therefore ‘are not determinative of the applicability of [an] exemption…we ‘cannot rely on the plaintiff’s or employer’s description of the plaintiff’s position or authority; instead we must ‘look at the plaintiff’s actual duties…the Plaintiff’s attempts to downplay his own responsibilities or skills are unconvincing.’” (emphasis added) The duties actually performed by the employee met the FLSA duties test.
How Do You Determine an Employee’s Primary Duties? The U.S. DOL guidance instructs us to look for those tasks and responsibilities that are the “principal, main, major or most important duty that the employee performs,” based on “the character of the employee’s job as a whole…Although time spent on a particular activity is a factor, a duty may still be the employee’s most important even if not the most time-consuming.” The court agreed, “we think the Department gets it right.” Although the employee’s job was “multi-dimensional” and the parties did not present an exact breakdown of how much time the employee spent on his various responsibilities, “the evidence demonstrates that [his] related responsibilities were key to his role…we conclude that they were his primary duty.”
Don’t Forget State Regulations! There are at least 18 states that have their own rules for classifying an employee as exempt that are different from the federal regulations. Work with your company’s employment counsel to ensure you have properly classified your exempt employees in accordance with federal and applicable state regulations.
