Federal Overtime Regulations Overhauled! (Continued from page two)
Diane Dennis Enterprises © 2004

White-Collar Workers

According to the "Fact Sheet #17A titled "Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the Fair Labor Standards Act (FLSA)"
(Available at: http://www.dol.gov/esa/regs/compliance/whd/fairpay/fs17a_overview.htm)

Important: Job titles do not determine exempt status!!

To qualify for exemption, "white-collar" employees generally must meet certain "tests" regarding their job duties and be paid on a salary basis at not less than $455 per week.

Following is some general info on the exemptions for executive, administrative, professional, computer, and outside sales employees... Please see the fact sheets located at the USDOL website for more detailed information on the specific exemptions.

Executive Exemption (more detailed info)
To qualify for the executive employee exemption, all of the following "tests" or requirements must be met:

• The employee must be compensated on a salary basis (as defined in the regulations) at a rate not less than $455 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; and
• 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 (more detailed info)
To qualify for the administrative employee exemption, all of the following "tests"/requirements 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 $455 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.

(next page: Professional and Computer Employee Exemptions)