While responsible AI use in the workplace may mean more efficiency and accuracy, it can also complicate employee classification under the Fair Labor Standards Act (FLSA). This alert considers how the integration of AI with an employee’s job duties may impact a position’s FLSA overtime exemption status. FLSA Overtime ExemptionsAll U.S. employees must be classified as either “exempt” or “non-exempt” from the overtime pay requirements of the FLSA.2 If an employee is “non-exempt”, they are entitled to minimum wage and overtime pay for hours worked in excess of 40 in a workweek. To qualify as “exempt”, employees must satisfy the FLSA’s salary threshold3 and meet certain tests regarding their job duties. Train human resources and legal teams to recognize how AI may affect FLSA exemption status and to adjust compliance strategies accordingly.