Federal Fair Labor Standards Act (FLSA) exemptions The FLSA exempts some employees from federal minimum wage and/or overtime requirements. These exemptions are narrowly defined, and whether an employee is exempt is determined by what the employee actually does and how they are paid, not by job title or by being on “salary.” Exempt status is applied on a workweek-by-workweek basis. An employer that wishes to treat a worker as exempt must ensure all of the requirements for the exemption are met. Paying a salary or commission, or calling someone a “manager,” does not by itself create exempt status. Employees exempt from both federal minimum wage and overtime Categories that may be exempt from both minimum wage and overtime under the FLSA include, among others: • Certain executive, administrative, and professional employees (“white-collar” exemptions). • Certain outside sales employees. • Certain computer employees in specific, highly skilled roles. • Certain employees of seasonal or recreational establishments. • Certain fishing and small farm workers. • Casual babysitters and some companions for the elderly or infirm in private homes. Each of these exemptions has detailed criteria. For white-collar exemptions, the tests generally require: • Payment on a salary or fee basis at or above a specified salary level; and • Primary duties that meet the specific duties tests for executive, administrative, or professional work. Because salary thresholds and regulatory interpretations change over time and are sometimes subject to litigation, employers should verify the current salary levels and duties criteria on the U.S. DOL Wage and Hour Division website or with counsel. Employees exempt from federal overtime only Some exemptions apply only to overtime and not to minimum wage. Most white-collar exemptions (executive, administrative, professional, outside sales, and certain computer employees) fall into this category: the employees must still receive at least the applicable minimum wage, but they are exempt from the FLSA requirement to pay overtime for hours over 40 in a workweek if they meet all exemption criteria. Blue-collar workers The white-collar exemptions do not apply to “blue-collar” workers who perform manual labor or other work involving repetitive operations with their hands, physical skill, and energy. Non- management employees in production, construction, maintenance, and similar occupations—
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