Who is an exempt employee?
Answer: The Fair Labor Standards Act (“FLSA”) requires that covered employees be paid at least the federal minimum wage for each hour they work and overtime pay at one and one-half times the employee's regular rate of pay for all hours worked over 40 in a workweek. The FLSA exempts from both minimum wage and overtime pay protections bona fide executive, administrative, professional and outside sales employees and certain employees in computer-related occupations.
For the exemptions to apply, an employee generally must be paid on a salary basis of no less than $455 per week and perform certain types of work that:
(1) is directly related to the management of his or her employer's business, or (2) is directly related to the general business operations of his or her employer or the employer's clients, or (3) requires specialized academic training for entry into a professional field, or (4) is in the computer field, or (5) is making sales away from his or her employer's place of business, or (6) is in a recognized field of artistic or creative endeavor.
Exemptions are determined based on each specific employment situation. Job titles alone do not determine the exempt or non-exempt status of any employee. Each determination is based on the specific job duties performed and compensation received.