An exempt employee is
an employee that is exempt from both minimum wage and overtime pay. In order to
qualify as an exempt employee, the FLSA has created regulations for both the
job duties and weekly salary amounts that must be met. An exempt employee
cannot be deemed exempt based on their job title; it must be based on the
duties of their position. There are several types of exempt employee
categories that the employee’s job duties may fall under: executive,
administrative, professional, computer and outside sales employees.
In addition to the
job duties, the employees must meet certain salary requirements. The employee
must be paid a salary of no less than $455.00 per week or an hourly rate of
$27.63, but these salary requirements do not apply to outside sales employees,
teachers or doctors. They must also be paid for the entire salary for any
week in which the employee performs any work. This is regardless of how
many days or hours are worked. There are only a couple
circumstances in which an employer may make a deduction from pay, but in order
to do so, the employee must be absent from work for one or more full days for
personal reason other than sickness or disability.
The Department of
Labor (DOL) has several tools and resources available to assist employers in
making this determination. For more
facts on the different types of exempt employees and the salary requirements,
visit the link below. This DOL site also
includes a test to help you decide if your employees meet the qualifications of
“exempt.”
http://www.dol.gov/whd/regs/compliance/fairpay/fs17g_salary.pdf
The Author: Alysha Frie, FPC
Payroll Sales Consultant
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