When is a company employee considered exempt?

In Hawaii, an employee is considered exempt when they are “not subject to” the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). Under the FLSA, in order to be considered exempt, an employee must meet certain criteria. This criteria includes mainly that the employee must be salaried, make an annual salary greater than $23,660, and meet certain job duties. In Hawaii, the job duties must fall into one of the three categories of exemptions: administrative, executive, or professional. Administrative employees must be primarily responsible for providing support to the business’s management and functions. Executive employees must be responsible for managing the business or a department with some discretion. Professional employees must be in a job that requires advanced education, such as medicine, law, engineering, or accounting. If an employee meets the necessary criteria, then they are exempt from overtime pay, and they only receive their salary, regardless of the hours worked. Since Hawaii is a state and subject to state laws, it does not always follow the exact same criteria regarding exempt employees as the federal laws. Therefore, it is important for employers and employees to be aware of the particular laws associated with Hawaii and the regulations around exempt employees.

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When is a company employee considered exempt?

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