Executive, Professional and Administrative Employees

Executive, administrative, professional, and outside sales employees may be exempt, meaning that they can be excluded from the federal minimum wage and overtime pay requirements. If you are “exempt,” this means that your employer is not required by law to give you pay for overtime work.

Rules

• Exempt employees must be paid with a salary
• Must meet certain criteria in job requirements 

Typical Problems:

• Just because a worker receives a salary that does not mean the worker cannot be due overtime.
• Reduction in employee’s pay for time missed when sick
• Failure of employers to pay full salary owed each week
• Employees classified as management who do not actually perform management tasks as set out by the law
• Employees with degrees that usually apply to the exemptions, but who are not using the degree on the job
• Employers confusing acquired job skills with the use of independent judgment

Definitions:

• Salaried employees receive a set pay each workweek without taking into account the actual number of hours worked
• Management tasks include, but are not limited to, directing the work of other employees, hiring and firing, and independent judgment of your own work
• Non-Management functions include, but are not limited to, ringing up sales, preparing food or waiting tables, making sales
• "Outside sales" employees are those making sales or obtain orders.  See [(Outside Sales)]

Executives

In order to be considered an “executive,” which by law excludes you from overtime pay provisions, you must meet certain requirements.  Note, however, that the law does not necessarily require that all of the criteria are met.

• management as your main duty
• directing the work of two or more full-time employees
• having the authority to hire and fire, or make recommendations regarding decisions affecting the employment status of others
• independently judge your own work
• receiving a salary
• not devoting more than 20% of your time to non-management functions (40% in retail and service establishments).

See also Managers, Supervisors, Assistant Managers and Associate Managers

Administrators

In order to be considered an “administrator,” which excludes you from being required to receive overtime pay, you must meet certain requirements: 

• office or non-manual work
• carrying out school administration
• independently making decisions
• helping executives with their responsibilities
• performing specialized or technical work
• special assignments
• receiving a salary
• not devoting more than 20% of your time to work other than that described above (40% in retail and service establishments)

Not all of the requirements must be met all of the time. 

Professionals

In order to be considered a “professional” you must meet certain requirements.

These may include:

• advanced knowledge and education in your work
• work in an artistic field which is original and creative,
• regular judgment about your work
• work which is intellectual and varied in character
• job cannot be calculated in amounts of time
• receipt of a salary (except doctors, lawyers, teachers and certain computer occupations)
• not devoting more than 20% of their time to work other than that described above

Not all of the requirements must be met all of the time.

Other Special Considerations