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Fair Labor Standards Act (FLSA). If an employee is classified as exempt (vs. non-exempt) their employer is not required to pay them overtime pay.
Administrative, executive, and professional employees, outside salespeople and certain computer employees may be classified as exempt if they meet the following criteria:
In addition, to qualify for exemption from overtime, employees generally must also meet certain tests regarding their job duties and responsibilities.
In general, non-exempt employees earning less than $455 per week, which is $23,660 per year, are guaranteed overtime pay.
The FLSA recognizes three main categories of exempt workers:
These categories encompass many types of jobs. It is the tasks performed in the job, not the job title, which determine exempt vs. non-exempt status. The FLSA guarantees non-exempt employees one and one-half times their normal pay rate for overtime worked during a work period.
Examples: