FLSA Exempt Classification: Maryland defaults to federal $684/week salary basis
Maryland employers must ensure all employees classified as exempt from overtime and minimum wage requirements meet the federal Fair Labor Standards Act (FLSA) criteria. This includes both a salary basis test, currently set at $684 per week ($35,568 annually), and a duties test that aligns with executive, administrative, or professional roles.
Unlike some states, Maryland does not impose a higher state-specific salary threshold for FLSA exemption. Therefore, adherence to the federal standard is paramount for compliance.
FLSA $684/wk Exempt Classification
Validates exempt against $684/week federal salary basis + duties test. Federal threshold controls — no MD-specific exempt rule.
What those rules do as a Maryland shift is created.
When Teambridge processes a shift for an employee in Maryland, it automatically evaluates the employee's exempt classification against the federal FLSA standards, ensuring that salary thresholds and duties tests are continuously met. This prevents accidental misclassification and potential wage claims.
Block misclassification
Teambridge prevents the incorrect classification of employees as exempt if they do not meet the federal FLSA salary threshold of $684/week, or if their duties do not align with executive, administrative, or professional categories.
Flag salary non-compliance
If an employee's salary falls below the federal threshold, or if their job duties are questionable for exemption, Teambridge flags the potential issue for review before any payroll processing.
Avoid back pay liability
By enforcing correct classification from the outset, Teambridge helps employers avoid significant back pay liabilities, penalties, and legal costs associated with FLSA violations in Maryland.
Compliance, on autopilot.
Maryland's wage and hour rules in 2026 are defined by three structural features: $15.00 statewide minimum wage (since January 2024) without automatic indexing, with Montgomery County layering its own higher rate; treble damages as the wage non-payment remedy under the WPCL plus HWFA's separate 3× hourly wage per violation framework; and FAMLI (Time to Care Act) launching contributions July 1, 2025 and rolling toward benefits January 2028. Layered on top: the Healthy Working Families Act's paid sick leave (1 per 30, 40 cap), Healthy Retail Employee Act break requirements for retail employers with 50+ workers, statewide pay transparency at hire effective October 2024, ABC test for UI/WC misclassification, and Maryland's mini-WARN Act (Economic Stabilization Act) req
Maryland defers to federal FLSA rules for exempt employee classification.
Maryland does not have a separate state law establishing a salary threshold for employees to be exempt from minimum wage and overtime requirements under the Fair Labor Standards Act (FLSA). Therefore, employers in Maryland must adhere strictly to the federal FLSA criteria.
29 U.S.C. § 201 et seq. (Fair Labor Standards Act)
The FLSA establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. Exemptions from the FLSA's minimum wage and overtime provisions apply to certain employees, including bona fide executive, administrative, and professional employees who meet specific salary and duties tests.
As of January 1, 2020, the standard salary level for exemption is $684 per week ($35,568 annually).
Salary Basis Test
To qualify for exemption, employees must be paid on a salary basis, meaning they receive a predetermined amount of compensation each pay period that is not subject to reduction because of variations in the quality or quantity of work performed. The current federal threshold for this salary is $684 per week ($35,568 annually). This is the only applicable salary threshold for Maryland employers.
There are limited exceptions where an employer may make deductions from an exempt employee's pay without losing the exemption, such as for absences of a full day for personal reasons or sickness, or for penalties for infractions of safety rules of major significance.
Duties Test
In addition to meeting the salary basis test, an exempt employee's primary duties must fall into one of the recognized FLSA exemption categories:
- Executive Exemption: The employee's primary duty must be managing the enterprise or a customarily recognized department or subdivision; they must customarily and regularly direct the work of two or more other employees; and have the authority to hire or fire other employees, or their suggestions and recommendations as to hiring, firing, advancement, promotion or any other change of status of other employees must be given particular weight.
- Administrative Exemption: The employee's primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer's customers; and their primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.
- Professional Exemption: The employee's primary duty must be the performance of work requiring advanced knowledge, defined as work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment; the advanced knowledge must be in a field of science or learning; and the advanced knowledge must be customarily acquired by a prolonged course of specialized intellectual instruction.
Teambridge ensures compliant exempt classifications in Maryland.
Teambridge's compliance engine automatically verifies that your Maryland workforce's exempt classifications meet the federal FLSA salary and duties tests. This proactive approach eliminates manual checks and significantly reduces the risk of misclassification and associated liabilities.
Initial classification validation
During employee onboarding, Teambridge prompts for necessary salary and job duty information. It then cross-references this data against the current FLSA salary threshold of $684/week and typical duties for executive, administrative, or professional exemptions.
Continuous salary monitoring
For every pay period, Teambridge monitors exempt employee salaries to ensure they consistently meet or exceed the federal $684/week threshold. Any deviation triggers an alert for immediate review.
Re-evaluation upon role adjustments
If an employee's job duties or compensation change, Teambridge automatically initiates a re-evaluation of their exempt status, ensuring ongoing compliance with both the salary and duties tests.
Automatic threshold adjustments
Teambridge automatically incorporates any future federal FLSA salary threshold updates, ensuring your system is always aligned with the latest legal requirements without manual intervention.
People also ask.
What is the current federal salary threshold for FLSA exemption?
As of January 1, 2020, the standard federal salary threshold for most FLSA exemptions (executive, administrative, and professional) is $684 per week, which equates to $35,568 annually. This is the threshold Maryland employers must follow.
Does Maryland have its own minimum salary for exempt employees?
No, Maryland does not have a state-specific salary threshold for FLSA exempt employees that is higher than the federal standard. Maryland employers must comply with the federal FLSA salary threshold of $684 per week.
What are the "duties tests" for FLSA exemption?
Beyond the salary threshold, an employee must also meet specific "duties tests" to be considered exempt. These tests define the primary responsibilities for executive, administrative, and professional roles, requiring the exercise of discretion and independent judgment, management of others, or advanced knowledge in a field of learning.
What happens if an exempt employee's salary falls below the federal threshold?
If an employee classified as exempt does not meet the federal salary threshold of $684 per week, they are no longer considered exempt, regardless of their job duties. This means they become eligible for minimum wage and overtime pay for all hours worked over 40 in a workweek, potentially leading to significant back pay liabilities for the employer.
Can an employer make deductions from an exempt employee's salary?
Generally, an exempt employee's salary cannot be reduced based on the quality or quantity of work. However, limited deductions are permissible without losing the exemption, such as for full-day absences due to personal reasons or sickness (if a bona fide sick leave plan is in place), or for penalties for safety rule violations of major significance. Improper deductions can result in the loss of the exemption.
How does Teambridge help with FLSA exempt classification compliance in Maryland?
Teambridge automates the monitoring of exempt employee classifications by verifying that salaries meet the federal $684/week threshold and by providing tools to assess if job duties align with FLSA exemption requirements. It flags potential misclassifications and keeps employers updated on federal regulatory changes, ensuring continuous compliance.