b'Exemptions from Overtime Who, What, Why . . . Who does it apply to: Overtime is governed by the Fair LaborDirect the work of two or more full-time employees (or theirStandards Act (FLSA). Without a long discussion about the .1equivalent); andpercent of employers who might not be covered, the simpleHave authority to hire and fire or at least recommend hiring,answer isvirtually everybody. firing,advancement,orpromotionwiththeemployees opinion given particular weight.What do I have to do: Employers must pay overtime, unless the employee is exempt. There are a myriad of complete and partialAre Highly-Compensated employees exempt:exemptions. The five discussed here are the most common. Employees who make over $107,423 per year from salary (employees over the limit because of discretionary bonuses do How does the Administrative exemption work: Administratorsnot qualify) are exempt but they have requirements too:may qualify for this exemption if they: Receive a salary of at least $684 per week (the rest couldReceive a salary of at least $684 per week; be bonus); Have a primary duty performing office or non-manual workHave a primary duty involving office work or non-manualrelated to general business operations or management oflabor;customers or the business; andCustomarily and regularly perform the duties of someoneExercise discretion and independent judgment with respectqualified under the Executive, Professional, or Administrativeto matters of significance. exemption. WhatarethetwoProfessionalexemptions:ProfessionalsWhataboutsalespeople:Retailcommissionandoutside canbeexempttwoways.Bothhavetherequirementthatsales people can be exempt. Outside sales employees must theemployeereceiveasalaryofatleast$684perweek.customarily work outside of the office and their primary duty must be making sales or taking orders for services or goods The Creative Professional exemption then requires: for which a customer will pay. Retail commission employees The employees primary duty is the performance of workmust work for a retail or service business, earn at least half ofrequiring a talent recognized in a field of creative or artistictheir wages from commission sales, and their regular rate of pay endeavorwhichinvolvesinvention,imagination,and/ormust exceed 1.5x the minimum wage for each hour worked in a originality. week in which they worked overtime.The Learned Professional alternatively requires: TheemployeehaveaprimarydutyrequiringadvancedWhat does primary duty mean: In case you missed it, the knowledgethatisprimarilyintellectualandthattheterm comes up in almost every exemption, so it is important. employees work involve consistent exercise of discretionGenerally, an employee spending more than 50 percent of their and judgment. time engaged in the primary duty will meet the exception, but other factors count too: (1) the importance of the exempt primary WhatistheExecutiveexemption:Tobeeligibleforthisduty compared with others; and (2) the employees freedom to exemption, an employee must: direct or supervise.Receive a salary of at least $684 per week; Have a primary duty to manage the business or a customarilyWhatotherareasofferexemptions:InformationTechnologyrecognized department; (IT); amusement and recreation; fish processing and canning;13'