Before designating an employee as exempt from minimum wage and overtime, what should be analyzed?

The correct choice is based on the importance of the duties test in determining whether an employee qualifies for exemption from minimum wage and overtime regulations. The duties test evaluates the nature of an employee's responsibilities and tasks, which are critical in distinguishing between exempt and non-exempt status according to the Fair Labor Standards Act (FLSA).

To qualify as exempt, the employee’s primary duties must involve executive, administrative, or professional tasks. This assessment ensures that the role aligns with the legal definitions provided by the FLSA, reflecting the intent of the law to categorize roles that are indeed fulfilling higher-level functions rather than those that are entitled to minimum wage and overtime protections.

While the employee's seniority level, team performance, or industry compensation standards can provide context about the employee's role and its significance within an organization, they do not inherently determine exemption status. The crux lies in whether the job itself meets the criteria outlined in the duties test, directly influencing the legal standing regarding compensation and labor law compliance.