When is a company employee considered exempt?
In North Carolina, an employee is considered exempt from overtime payments if their primary job duties are executive, administrative, or professional. This includes workers who are in charge of managing the business, performing work that involves discretion and independent judgment, or who have special skills in a field like science, medicine, or education. In order to qualify for an exemption, the employee must be paid a salary that meets the minimum wage set by North Carolina law. Additionally, the employee must be paid at least twice the minimum wage for any overtime hours worked. In addition, the employee must be able to perform their primary duties with a minimum of supervision, which usually means they have the power to make decisions and plan their work according to their own discretion. This could be a manager or someone with specialized skills in certain areas. Finally, the employee must pass a “short test”. This test is used to determine if an employee is actually performing executive, administrative, or professional work as opposed to simply having the job title. An employee may pass the test by meeting certain criteria regarding their job duties and the amount of time spent on those duties. If the employee satisfies all of the criteria outlined above, they are considered exempt from overtime payments in North Carolina.
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