When is a company employee considered exempt?

In Texas, an employee is generally considered exempt when they meet certain criteria. For example, in order for an employee to be exempt from overtime, they must be paid at least $455 per week (or $23,660 annually) and must earn a salary rather than an hourly wage. Additionally, the employee must have specific job duties that generally involve high-level decision making and discretion or independent judgment. Common examples of employees who may be considered exempt in Texas include certain executive, administrative, professional, and outside sales personnel. Generally, the employee must be paid on a salary basis, have job duties that involve the exercise of discretion and independent judgment, and generally spend more than fifty percent of their time performing exempt duties. In addition, certain computer employees may be exempt, depending on their job duties. For example, employees who are paid at least $27.63 per hour and who have certain duties related to the design, development, documentation, analysis, creation, testing, debugging, or modification of computer systems and software may be exempt. Finally, certain highly compensated employees who earn a total annual compensation of more than $100,000, and who work more than ninety percent of their time in duties that meet the salary and job duties tests, may also be considered exempt. It is important to remember that there are a number of other exemptions, including employees in certain industries and those who work in certain occupations. Additionally, certain employees may be exempt from federal law, but may still be subject to state overtime laws. For this reason, it is important for employers to familiarize themselves with applicable state and federal laws and to consult an employment lawyer with any questions about exemption categorization.

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When is a company employee considered exempt?

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