Revised effective August 23, 2004
The following exemption requirements, prescribed in Federal regulations issued pursuant to the Fair Labor Standards Act, are defined in terms of duties, responsibilities, and salary. These federal guidelines are followed to determine whether a position is exempt or non-exempt. An employee is exempt as an executive, administrator or professional when all of the conditions listed below for the particular category are met.
An executive employee must meet all of the following requirements in order to be exempt from the Fair Labor Standards Act (FLSA) minimum wage and overtime provisions:
1. The employee must be compensated on a salary basis (as defined in the regulations) at a rate not less than $455 per week;
2. The employee's primary duty must be managing the enterprise, or managing a customarily recognized department or subdivision of the enterprise;
3. The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent; and
4. 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.
An administrative employee must meet all of the following requirements in order to be exempt from the FLSA minimum wage and overtime provisions:
1. The employee must be compensated on a salary basis (as defined in the regulations) at a rate not less than $455 per week;
2. 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
3. The employee's primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.
A learned professional employee must meet all of the following requirements to be exempt from the FLSA wage and overtime provisions.
1. The employee must be compensated on a salary basis (as defined by the regulations) at a rate not less than $455 per week;
2. The employee's primary duty must be the performance of work requiring advanced knowledge, defined as work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment;
3. The advanced knowledge must be in a field of science or learning; and
4. The advanced knowledge must be customarily acquired by a prolonged course of specialized intellectual instruction.
Teachers are exempt if their primary duty is teaching, tutoring, instructing or lecturing in the activity of imparting knowledge, and if they are employed and engaged in this activity as a teacher in an educational establishment.
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