What is considered an exempt employee?
An exempt employee is an employee who is not subject to the overtime pay requirements of certain labor laws due to their job title or duties. In Florida, exempt employees are determined by the provisions of the Fair Labor Standards Act (FLSA) and the state Wage and Hour law. Under the FLSA, an exempt employee is an individual who meets three criteria: being paid on a salary basis, meeting certain job duties tests, and being paid a minimum salary of at least $684 per week. In order to meet the salary basis test, an individual must be paid a fixed salary that does not vary based on the quality or quantity of work performed. The salary must also be paid regardless of the number of days or hours a person works. Most executive, administrative, professional, and computer employees are considered exempt. To meet the job duties test, an employee must primarily perform executive, administrative, professional, or computer-related tasks. Examples of exempt employees include those in management positions, those who perform professional duties such as lawyers, accountants, engineers, and teachers, and those who perform computer-related functions. In addition to these criteria, the salary and job duties tests also have other rules that can slightly vary by state. In Florida, the minimum salary threshold is slightly higher than in other states, and certain other employees can also be exempt. As such, it is important to review current wage and hour laws before determining if an employee is considered exempt.
Related FAQs
What is the difference between overtime hours and double time?What is the difference between a common law contract and a contract under wage and hour law?
What is considered an exempt employee?
What are the employer’s responsibilities for paying minimum wage?
What type of records must employers provide regarding wages earned?
What are the rules for paying salary employees overtime?
What are the requirements for shift differentials?
What are the rules for paying commissions to employees?
What are the requirements for reporting wages to the government?
What is the difference between a minimum wage and a prevailing wage?
Related Blog Posts
What is Wage and Hour Law and How Does it Affect Your Business? - July 31, 2023What Employers Need to Know About Wage and Hour Law - August 7, 2023
The Basics of Payroll Law and Compliance - August 14, 2023
Compensating Your Employees - Tips for Wage and Hour Law Compliance - August 21, 2023
Understanding Overtime Rules Under Wage and Hour Law - August 28, 2023