What is considered an exempt employee?

An exempt employee is an employee who is not subject to certain labor laws, including wage and hour laws, that are designed to protect employees. In Louisiana, an employee is considered exempt if they are classified as “executive, administrative, professional, or outside sales” according to the rules set forth by the Wage and Hour Division of the Louisiana Workforce Commission. An executive is an employee who meets certain criteria set forth by the division which include managing a business or a department; regularly exercising discretion and independent judgment in the performance of their duties; and having the authority to hire or fire other employees (or have an influence in that process). An administrative employee is an employee whose primary duty involves the performance of office or non-manual work and whose primary duty involves the exercise of discretion and independent judgment. Professional employees are those employed in a professional capacity as a lawyer, registered nurse, accountant, etc. An outside salesperson is an employee whose primary duty is making sales or obtaining orders or contracts of services or for the use of facilities. Exempt employees are not entitled to the protection of certain labor laws, including the minimum wage and overtime pay laws. It is important that employers understand the distinction between exempt and non-exempt employees. Employers who do not abide by the rules set forth by the Wage and Hour Division may face penalties.

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What is considered an exempt employee?

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