Salaried Exempt Employees

Salaried-Exempt Employees: It’s More Than Just “Salary”!

According to the Fair Labor Standards Act (FLSA), some employees are exempt from being paid overtime wages. All of the exempt positions are salaried positions, but not all salaried positions are considered exempt! The FLSA takes into account the nature of the position when determining whether they are exempt. The first exempt position is for executive employees. These are employees who oversee two or more employees, have authorization to and advise in the hiring and firing of employees, and direct part of the company’s business. The next exception is the administrative exemption. These jobs are positions that involve with management or general business operations of an organization. These are typically office positions. The third exemption is the professional exemption. These are often positions that require advanced training or involvement in creative or inventive endeavors or endeavors that require very specific talent. Examples of these positions are lawyers, actors, and medical doctors. The final exception is for computer positions. These are positions that require an employee to work closely with computers, such as programmers.

In addition to the nature of the work, the FLSA also takes into account the amount of money being paid to the employee to determine whether the employee can be considered “exempt.” As of January 2021, the minimum salary of an exempt employee is $684 a week ($35,568 a year). This does not mean that an employee’s salary cannot sometimes fluctuate, but the employee’s weekly salary must never go below $684 a week. Further, it must also be noted that the minimum salary is not pro-rated if the employee works below 40 hours a week.

If you have any questions regarding whether you or an employee of your organization is a salary exempt employee please contact Employer-Lawyer at (801) 874-4964.