What is the FLSA Analysis?
Misclassifying a position under the FLSA is one of the most expensive mistakes an agency can make: back overtime, penalties, and the awkward conversation with a long-tenured employee who was exempt on paper but never should have been. The determination itself is genuinely hard. It depends on duties tests, salary thresholds that differ by state and change over time, and public-sector provisions that generic guidance ignores.
The FLSA Analysis reviews a spec's duties and responsibilities against the FLSA exemption criteria and assesses whether the position is likely exempt or non-exempt. It identifies which exemption type applies, such as executive, administrative, professional, computer, outside sales, or highly compensated employee, and flags positions that don't clearly meet any exemption for review. The analysis knows it's evaluating a local government position and applies current thresholds rather than relying on outdated figures.
Warning: This analysis is an AI-generated assessment to support your review, not a legal determination of a position's FLSA status. Exemption decisions carry significant legal and financial consequences. Validate findings with your HR leadership or legal counsel before changing a position's classification.
State-Specific Analysis
FLSA exemption isn't only federal. Several states set higher salary thresholds or stricter duties tests, and a position that passes the federal test can still fail the state one. For specs in California, Washington, New York, Colorado, Alaska, and Maine, the single-spec analysis applies that state's exemption standards alongside the federal criteria and separates the two in its output, so you can see exactly which framework each finding comes from. For specs in other states, the analysis notes that federal standards apply and evaluates against those.
Common Use Cases
Auditing Exemption Status Across Your Catalog
Exemption determinations made years ago drift out of date as duties evolve and thresholds rise. Run the bulk report to get a likely-exempt or likely-non-exempt read on every classification at once, then focus review on the specs flagged Needs Review.
Documenting a Determination for One Position
An employee questions their exempt status, or a reclassification puts a position near the line. Run the single-spec analysis to get a written assessment with legal citations you can include in the position's file alongside your own determination.
Rechecking Borderline Positions After a Threshold Change
State salary thresholds rise on a schedule, and positions that were comfortably exempt can drop below the line. When your state's threshold updates, rerun the single-spec analysis on positions near the old threshold.
Running It on One Spec or Many
On a single spec, from the spec's Analyze menu. This is the detailed, state-aware version with legal citations. See How to Run an Analysis on a Class Specification.
Across your catalog, from the Reports section, for a catalog-wide first pass. See Running Reports for Bulk Analysis.
Note: Your agency's configuration determines which analyses are included for your account, so this analysis may not be available to you. Questions about your configuration? Contact Holly Support at [email protected].
Understanding Your Results
Single-Spec Results
The single-spec analysis appears in the floating analysis window and works through the exemption determination the way an analyst would: the applicable salary test, the duties test for the relevant exemption type, and a concluding assessment. Findings include inline citations to the specific regulations they rest on, which is what makes the output usable as supporting documentation.
For specs in states with their own exemption standards, federal and state analyses are presented separately, so a position that's exempt federally but non-exempt under state law is flagged as exactly that rather than averaged into an unclear middle.
Bulk Report Results
The bulk report assigns each spec one of four statuses:
Likely Exempt: Strong indicators the position meets an exemption. Each includes the exemption type identified.
Likely Non-Exempt: Strong indicators the position does not meet an exemption.
Needs Review: The duties are ambiguous. These are your priority list; run the single-spec analysis on each.
Missing Info: The spec doesn't contain enough information to assess. These specs likely need content work before any determination is possible.
Hover over a result to see Holly's reasoning.
Note: The bulk report evaluates against federal exemption criteria. For positions in states with their own thresholds or duties tests, run the single-spec analysis to get the state-specific determination.
Filtering Your Results
Use the filter controls above the bulk results table:
Filter by status: Likely Exempt, Likely Non-Exempt, Needs Review, or Missing Info.
Filter by exemption type: Executive, Administrative, Professional, Computer, Outside Sales, Highly Compensated, Multiple, or Unknown.
A practical sequence: filter to Needs Review to build the list requiring individual analysis, then filter Likely Exempt by exemption type to spot-check whether the identified exemptions match your existing designations.

