Human Resources FAQ: What Makes an Employee Exempt vs. Nonexempt?
Help Desk On August 23, 2004, President George Bush approved legislation to change the way overtime exemptions work. In order to be classified as exempt, a professional, executive, administrative, computer or outside sales position must be paid at least $455 a week and meet the “duties” tests specified by the Fair Labor Standards Act. Any worker making less than this is not exempt. Any employee making over $100,000 a year, as long as there is a base pay of $455 or more a week, may be classified as exempt. According to the U.S. Department of Labor Wages and Hour Division Fact Sheet #17A, To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. Job titles do not determine exempt status. In order for an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the Department’s regulations. These criteria are referred to as the “salary basis” and “d
