Hiring Tools and Information

          Organizations must keep an eye on the gray areas when determining whether workers are exempt or non-exempt. Guess wrong, and the misclassification can bring government action and hefty fines.

FLSA Exemptions-Examples
Exemptions are narrowly construed under the Fair Labor Standards Act (FLSA). Employers and employees should always check the exact terms and conditions of an exemption as it applies to the employee. Note: Exemptions are typically applied on a workweek basis. Employees performing exempt and non-exempt duties in the same workweek are normally not exempt in that workweek.

Common Exemptions:

• Commissioned sales employees of retail or service establishments are exempt from the overtime (OT) provisions if more than half of their earnings come from commissions and they average at least one and a half times the minimum wage for each hour worked.
  
  
• Computer professionals. Section 13(a)(17) of the FLSA provides that certain computer professionals paid at least $27.63 per hour are exempt from the OT pay provisions.
  
  
• Drivers, drivers’ helpers, loaders, and mechanics are exempt from the OT pay provisions if a motor carrier employs them and if their duties affect the operational safety of the vehicles when transporting passengers or property for interstate or foreign commerce.
  
  
• Farm workers employed on small farms are exempt from the minimum wage and the OT pay provisions. Young workers employed on small farms, with parental consent, are also exempt from the child labor provisions (for specifics, see the child labor provisions of the FLSA on agriculture).
  
  
• Salespeople, parts people, and mechanics employed by automobile dealerships are exempt from the OT pay provisions.
  
  
• Seasonal/recreational establishment workers. Workers employed by certain seasonal/recreational establishments are exempt from the minimum wage and the OT pay provisions.
  
  
• White-collar employees employed in executive, administrative, professional, or outside sales positions (as defined by the Department of Labor regulations) and who are paid on a salary basis are exempt from both the minimum wage and the OT pay provisions.