What is considered an exempt employee?

Exempt employees are those who are not covered by state and federal wage and hour laws in Arizona. Exempt employees can include executives, administrators, professionals, outside salespeople, and certain computer professionals. Executives are those employees who manage an enterprise, department, or subdivision. They typically must have the authority or ability to hire or fire other employees, the authority to make important decisions, and must be a key player in the success of the enterprise. Administrators are employees who perform office or non-manual work directly related to the management or general business operations of the employer. They may provide support to the business in areas such as finance, accounting, legal, purchasing, IT, or marketing. Professionals are employees who typically work in fields such as teaching, engineering, law, accounting, science, architecture, and medicine. Professionals must have advanced education or knowledge in their field of work, or have acquired special knowledge or skills through extended training. Outside salespeople are employees who regularly work away from the employer’s place of business. They must make sales or obtain orders or contracts for services or for the use of facilities. Computer professionals are employees who design, develop, maintain, or support computer hardware or software. They must have advanced knowledge in the computer field, such as programming, software engineering, and system analysis. Exempt employees are not entitled to overtime premiums under the Fair Labor Standards Act. However, they may still be eligible for other benefits such as health insurance, vacation, and sick pay.

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What is considered an exempt employee?

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