Overtime Pay: How to Determine If You Are Eligible

Employees who work more than 40 hours in asecretaries carrying out these job duties do not
single week should be aware of whether they aremeet the provisions of the administrative
exempt under overtime law. Exempt andexemption. Likewise, although many secretaries
non-exempt status determines whether anexercise judgment in their positions, this level of
employee is eligible to receive time-and-a-halfjudgment must be compared to the importance
compensation (1.5 times the regular rate) whenof the entire company. For example, selecting
working more than 40 hours a week. Exemptoffice supplies would not typically be considered
employees cannot receive overtime, whilean important matter when comparing this job
non-exempt workers are entitled to overtimetask with those of others in the company.
pay. Because some employers are unclear on2. Professional Exemption
overtime regulations, employees who are awareTo fall under the professional exemption, the
of their status can ensure they are receiving theworker must perform a position requiring
pay they deserve under overtime law.advanced knowledge in the areas of science or
For most workers, overtime eligibility islearning. Professional employees typically have a
determined by job duties, how an employee isspecialized academic degree in their field. An
paid and how much they earn. Being a salariedindividual whose job requires originality and
worker or having a certain job title cannotimagination in an artistic or creative field would
automatically make an employee ineligible foralso fall under the professional exemption.
overtime pay. In general, employees who cannotTeachers, lawyers and doctors may be examples
receive overtime must earn at least $455 perof professional employees.
week, be a salaried employee and fall under one3. Executive Exemption
of the overtime exemptions established by theTo be considered an executive employee, the
federal overtime law, the Fair Labor Standardsworker must manage the business or a unit of
Act (FLSA). The administrative exemption,the company, regularly direct at least two
executive exemption and professional exemptionemployees and have the ability to hire and fire
are the three main exemptions under the FLSA.employees. If an assistant manager and a
Workers who do not meet one of the followingmanager are always on duty simultaneously, the
exemptions are probably eligible for overtime pay.manager is considered to be "in charge."
1. Administrative ExemptionTherefore, many assistant managers are eligible
To meet the administrative exemption, thefor overtime pay for hours worked in excess of
employee must work in school administration40.
or perform office or non-manual work.In addition to these three overtime exemptions,
Administrative employees must also regularlythose engaged in outside sales (sales made away
exercise independent judgment and discretion infrom the worksite) cannot receive overtime pay.
important matters. Examples of administrativeAlso, some computer employees may be exempt
employees may include planners and departmentfrom overtime pay. However, technical
store buyers. Although clerical work is consideredwriters, systems engineers, computer operators
"administrative", most secretaries are eligible forand junior programmers, as well as computer
overtime pay. Filing, answering phone calls,professionals who make, repair or maintain
gathering reports and making travel plans are notcomputer hardware are typically eligible for
considered high-level job tasks. Therefore,overtime compensation.