Highly paid employees exempt from overtime provisions
The Fair Labor Standards Act (FLSA) includes overtime provisions that guarantee non-exempt employees receive premium pay (one-and-a-half times their regular wage) for any time and attendance beyond 40 hours. However, there are some positions that are exempt from the standards.
Highly paid employees, along with certain administrative, executive, professional, outside sales and specific computer employees, do not necessarily need to be paid overtime rates if they meet criteria outlined in the act.
To qualify for the exemption as a highly paid employee, workers must receive at least $100,000 annually and $455 on a weekly basis. This total can include bonuses, commissions and nondiscretionary compensations earned throughout the year.
In addition, that employee's duties must primarily include non-manual work that aligns with requirements for professional, administrative or executive employees. As an example, highly paid employees must also be in charge of managing other workers, perform administrative work or use specialized skills in a professional field, according to the FLSA.
Employers should ensure their employee handbooks and payroll processing systems all reflect the same guidance that complies with the FLSA. They can outsource human resources to manage their employee attendance practices if they don't have full-time HR staff on hand.
Highly paid employees, along with certain administrative, executive, professional, outside sales and specific computer employees, do not necessarily need to be paid overtime rates if they meet criteria outlined in the act.
To qualify for the exemption as a highly paid employee, workers must receive at least $100,000 annually and $455 on a weekly basis. This total can include bonuses, commissions and nondiscretionary compensations earned throughout the year.
In addition, that employee's duties must primarily include non-manual work that aligns with requirements for professional, administrative or executive employees. As an example, highly paid employees must also be in charge of managing other workers, perform administrative work or use specialized skills in a professional field, according to the FLSA.
Employers should ensure their employee handbooks and payroll processing systems all reflect the same guidance that complies with the FLSA. They can outsource human resources to manage their employee attendance practices if they don't have full-time HR staff on hand.
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