are salary employees considered exempt
To be considered exempt based on administrative exemptions, employees must receive a salary just as executives do. However, a different duty test is in place. For this category of exemptions, the employee must have the primary job of performing non-manual labor or office work. Computer employees must perform advanced-level work with computers for which they are paid a salary in order to be considered exempt. Computer systems analysts, programmers, and engineers are some examples of computer professionals typically considered exempt. An exempt employee is a worker who is not guaranteed overtime pay or minimum wage under the Fair Labor Standards Act (FLSA). The FLSA is an important piece of worker protection legislation that provides a variety of different rights to workers. Understanding White Collar Overtime Exemptions. Employers pay overtime to employees based on their employment status according to the Fair Labor Standards Act (the federal wage and hour law). Employees who are entitled to overtime pay are called “nonexempt” employees; those who are not entitled to overtime pay are called “exempt” employees. Effective December 1, 2016, the annual salary must be $47,476. So, to be considered exempt, an employee must be paid at least a $913/week salary and “customarily and regularly” perform one or more exempt duties or responsibilities to qualify as an exempt executive, administrative, or professional employee. FLSA section 13(a) provides a detailed list of the requirements that must be fulfilled before an employee may be classified as exempt. These requirements are in place, in part, to ensure that employers do not incorrectly classify non-exempt workers in order to avoid compliance with wage and hour laws. Salary Basis Requirement. To qualify for exemption, employees generally must be paid at not less than $455 per week on a salary basis. These salary requirements do not apply to outside sales employees, teachers, and employees practicing law or medicine. Exempt computer employees may be paid at least $455 on a salary basis or on an hourly basis at a rate not less than $27.63 an hour. Being paid on a salary basis means an employee regularly receives a predetermined amount of compensation each pay period on a weekly, or less frequent, basis. There are three main types of exempt employees. To fall under the executive exemption, for instance, the employee must be paid a salary instead of an hourly wage. The employee must also be vested with the primary duty of managing either the business enterprise or a subdivision or department thereof. However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. Q: What salary amount is high enough for an employee to be considered “exempt”? A: The 2004 regulations eliminated the “short” and “long” tests for determining who has “exempt” status and established a $23,660 annual salary ($455/week) as the benchmark for the exemption.
Yes, Employees generally must be paid at not less than $455 per week on a salary basis.