When is a company employee considered exempt?

In Washington, an employee is considered exempt from overtime pay if they meet certain criteria outlined in the Fair Labor Standards Act. To meet these criteria, the employee must be paid a salary (not an hourly rate) and must primarily perform executive, administrative, or professional duties, as defined by the Act. In addition, the employee must earn a minimum salary of $684 per week/ $45,568 per year, and must be paid on a salary basis, not an hourly basis. To determine if an employee is exempt, employers must also look at the employee’s job duties. Exempt employees typically perform higher-level duties that are reflective of executive, administrative, or professional tasks. For example, if an employee primarily manages other employees or makes high-level decisions, they may qualify as exempt. On the other hand, if an employee primarily performs menial tasks, such as answering phones or processing paperwork, they may not qualify as exempt. The laws surrounding employee exemption can vary by state, so it is important for employers to consult with a local labor laws attorney to ensure that their employees are classified correctly. Additionally, employers should regularly update employment practices to ensure that they are compliant with state and federal laws.

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When is a company employee considered exempt?

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