When you give your time and your labor to an employer, you expect to be compensated for your efforts correctly and in a timely manner. State and federal laws mandate that employers must pay employees minimum wage and give overtime pay when the statutory requirements are met. However, some employees are exempt from these rules – a fact that can be abused by employers, intentionally or not. How do you know if you are an exempt employee?
Executive exemption
To qualify for this exemption under the Fair Labor Standards Act, an employee must be paid a salary of at least $684 per week and manage the enterprise or a division of it. They must direct the work of at least two other employees and have the authority to hire and fire employees – if they don’t have sole authority, their recommendations for hiring and firing must be given significant weight.
Administrative exemption
Administrative employees have the same pay requirement of $684 per week. Their primary duty must be non-manual labor and directly related to the operations of the business or its customers. An administrative employee has the ability to use discretion and judgement in their role, affecting important aspects of the business.
Professional exemption
They must be paid at least $684 per week. The performance of their duties has to require advanced knowledge and be mostly intellectual in nature. The advanced knowledge must be in a field of science or learning which typically requires an advanced education.
Computer employee exemption
Wage and hour law states that this exemption can be paid by salary of at least $684 per week or, if paid by the hour, at least $27.63 per hour. Their primary duties must involve computer hardware or software, whether it be design, development, or application of those systems.
Outside sales exemption
The primary duties of an outside sales employee must be making sales or obtaining contracts for services. The performance of their duties must be regularly conducted away from the employer’s place of business.