| Employees, particularly those who work more | | | | secretaries performing these job tasks do not |
| than 40 hours a week, should be aware of | | | | meet the provisions of the administrative |
| whether they are an exempt or non-exempt | | | | exemption. Additionally, although many secretaries |
| employee under overtime law. Exempt and | | | | exercise judgment in their positions, this level of |
| non-exempt status determines whether an | | | | judgment must be compared to the importance |
| employee is eligible to receive time-and-a-half | | | | of the entire business. For instance, choosing the |
| compensation when working more than 40 hours | | | | supplies for the office would not typically be |
| a week. An exempt employee cannot receive | | | | considered an important matter when comparing |
| overtime, while a non-exempt worker is entitled | | | | this job task with those of others in the |
| to overtime pay. Because many employers may | | | | company. |
| be confused by overtime law, employees who | | | | 2. Executive Exemption |
| are aware of their status can ensure they are | | | | To be considered an executive employee, the |
| receiving the pay they are entitled to under | | | | worker must regularly direct at least two |
| overtime law. | | | | employees, manage the business or a unit of the |
| For most employees, overtime eligibility is | | | | company, and have the ability to hire and fire |
| determined by how much the employee is paid, | | | | employees. If an assistant manager and a |
| how they are paid and their job duties. Being paid | | | | manager are always on duty simultaneously, the |
| by a salary or having a certain job title cannot | | | | manager is considered to be the person "in |
| automatically make an employee ineligible for | | | | charge." Therefore, many assistant managers are |
| overtime pay. In general, employees who cannot | | | | eligible for overtime pay when working more than |
| collect overtime must receive at least $455 per | | | | 40 hours a week. |
| week, be paid by a salary and meet one of the | | | | 3. Professional Exemption |
| overtime exemptions established by the federal | | | | To meet the professional exemption, the |
| overtime law, the Fair Labor Standards Act | | | | employee must carry out a position requiring |
| (FLSA). The three main exemptions under the | | | | advanced knowledge in the areas of science or |
| FLSA are the administrative exemption, executive | | | | learning. Professional employees typically have a |
| exemption and professional exemption. Individuals | | | | specialized academic degree in their field. An |
| who do not meet one of the following | | | | individual whose occupation requires originality and |
| exemptions are probably eligible for overtime pay. | | | | imagination in an artistic or creative field would |
| 1. Administrative Exemption | | | | also fall under the professional exemption. |
| To fall into the administrative exemption, the | | | | Examples of professional employees include |
| employee must perform office or non-manual | | | | teachers, lawyers and doctors. |
| work or work in school administration. | | | | In addition to the three main overtime |
| Administrative employees must also regularly | | | | exemptions, those engaged in outside sales (sales |
| exercise discretion and independent judgment in | | | | made away from the worksite) cannot receive |
| important matters. For instance, planners and | | | | overtime pay. Additionally, some computer |
| department store buyers may be examples of | | | | employees may be exempt from overtime pay. |
| administrative employees. Although clerical work is | | | | However, systems engineers, computer |
| considered "administrative", most secretaries are | | | | operators, junior programmers, and technical |
| entitled to overtime pay. Filing, answering phone | | | | writers, as well as computer professionals who |
| calls, gathering reports and making travel plans are | | | | make, repair or maintain computer hardware are |
| not considered high-level job tasks. Therefore, | | | | generally eligible for overtime compensation. |