Exemptions from Federal Overtime Pay Requirements Only. Most exempt employees fall into one of four classifications: executive, administrative, professional, or outside salesperson. To qualify as an exempt executive, administrative or professional employee, an employee generally must meet certain tests regarding his or her job duties and be paid on a salary or fee basis at not less than $455 per week. Up to 10 percent of the salary threshold for non-highly compensated employees can be satisfied by non-discretionary bonuses, incentive pay or commissions-basis payments that must be made on at least a quarterly basis. The salary threshold will automatically update every three years. Executive Exemption To qualify for the executive employee exemption, all of the following tests must be met: • The employee must be compensated on a salary basis (as defined in the regulations) at a rate not less than $970 per week; • The employee's primary duty must be managing the enterprise, or managing a customarily recognized department or subdivision of the enterprise; • The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent; • The employee must have the authority to hire or fire other employees, or the employee's suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees must be given particular weight. Administrative Exemption To qualify for the administrative employee exemption, all of the following tests must be met: • The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $684 per week; • The employee's primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer's customers; and • The employee’s primary duty includes the exercise of discretion and independent judgment with respect to matters of significance. Professional Exemption To qualify for the learned professional exemption, all of the following tests must be met: • The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $684 per week; • The employee's primary duty must be the performance of work requiring advanced knowledge, defined as work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment;
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