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Exempt employees under the Fair Labor Standards Act

On Behalf of | Jul 23, 2021 | Employment Law |

The Fair Labor Standards Act (FLSA) is the federal regulations which govern the requirement that employers pay minimum wage and overtime compensation. Under the FLSA, employers must pay employees at least the federal minimum wage and pay time and one-half for all hours worked in excess of 40 per week. But there are exceptions to these standards.

Executive exemption

Executive employees are exempt from FLSA requirements if they are salaried at not less than $684 per week. Their primary duty must be managing the business and they must regularly direct the work of at least two other full-time employees, or their equivalent. Executives must also have the authority to hire and fire employees, or at least a significant say in the matter.

Administrative exemption

Administrative employees have the same salary requirement as executives. Their primary duty must be non-manual work which is directly related to the general business operations of the employer or its customers. They must also be able to exercise independent judgement with respect to significant matters within the business.

Professional exemption

In addition to the salary requirement, professionals must perform work that is predominately intellectual in nature, such as science or learning. The advanced knowledge required to do the job should customarily require prolonged to study to acquire. Creative professionals can also qualify for this exemption, if their primary duty involves invention, imagination, originality or artistic talent.

Computer employee exemption

Computer employees can be compensated by either a minimum salary or minimum hourly wage. Analysts, programmers and software engineers are examples of employees who could qualify for this exemption.

Outside Sales exemption

To qualify for this employment law exemption, the employee’s primary duty must be making sales or obtaining orders or contracts for services. They must also be regularly engaged in their duties away from the business itself.