Overtime exempt employees don't have the right to overtime pay under the Fair Labor Standards Act. Most companies must abide by FLSA rules if they have two or more employees and generate more than $500,000 in annual revenue, or if their employees engage in interstate commerce. Some workers are exempt from the overtime rules because they aren't governed by the FLSA, including many theater workers, truck drivers, agricultural workers and railroad workers. Both salaried and hourly workers can be exempt under the FLSA.
Exempt Salaried Employees
The main category of employees who are exempt from overtime rules are salaried professional, executive and administrative workers who earn at least $455 per week. Outside sales workers are usually exempt as well, as are non-manual workers earning at least $100,000 per year.
Examples of salaried exempt employees include business managers, computer programmers, engineers, architects, clergy, accountants and registered nurses. Exempt professions often require advanced or graduate-level education.
Some hourly employees are exempt from overtime rules because of the professional nature of their work. To qualify, they must make at least $27.63 per hour. For example, hourly computer professionals such as programmers and software engineers qualify as exempt if they earn at least the hourly minimum. On the other hand, hourly registered nurses are not exempt.
Some seasonal employees, such as those who work in recreational parks, are also exempt from overtime rules.
- U.S. Department of Labor: Compliance Assistance -- Wages and the Fiar Labor Standards Act (FLSA)
- U.S. Small Business Adminsitration: Are Your Employees Working Overtime During the Holidays? Understand Overtime Wage Law
- FLSA.com: Coverage Under the FLSA
- U.S. Department of Labor: Fact Sheet #17A Exempt Employees
- U.S. Department of Labor: Wage: Fact Sheet #17G -- Salary Basis Requirement
- U.S. Department of Labor: Fact Sheet #17E: Exemption for Empl oyees in Computer-Related Occupations
- U.S. Department of Labor: Fact Sheet #17N: Nurses and the Part 541 Exemptions Under the Fair Labor Standards Act (FLSA)
- U.S. Department of Labor: elaws -- Fair Labor Standards Act Advisor -- Exemptions
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