This means that they are not eligible to receive the time-and-a-half rate for hours worked beyond the standard 40-hour work week. These exemptions are designed to account for the unique nature of specific job roles and responsibilities.
Executive Exemption: Employees classified under the executive exemption typically hold managerial or supervisory roles. To qualify for this exemption, employees must earn a salary of at least $684 per week, have the primary responsibility of managing the organization or a department, direct the work of at least two full-time employees, and possess the authority to make significant decisions regarding other employees’ status within the company.
Administrative Exemption: Administrative employees are generally involved in office work or non-manual labor directly related to the management or general operations of a business. To qualify for the administrative exemption, employees must earn a salary of at least $684 per week and exercise discretion and independent judgment in significant matters. Examples of administrative employees include human resources managers, financial analysts, and executive assistants.
Professional Exemption: The professional exemption covers two types of professionals: learned professionals and creative professionals. Learned professionals possess specialized knowledge gained through advanced education in fields like law, medicine, science, or accounting.
Outside Sales Exemption: Employees classified as outside sales professionals are exempt from overtime pay if their primary duty is making sales or obtaining contracts for services while working away from their employer’s place of business. There is no minimum salary requirement for outside sales employees.
Computer Professional Exemption: This exemption applies to employees working as computer systems analysts, software engineers, or other similar roles. Their primary duties must include the design, development, testing, or analysis of computer systems or programs.
It’s important to note that specific criteria must be met for employees to be classified as exempt from overtime pay, and misclassification can lead to penalties for employers. Additionally, state laws may have more stringent requirements than the FLSA, so it is crucial to understand the specific regulations applicable to each employment situation.