Executive, Professional, and Administrative

Executive, professional, and administrative employees can be excluded from the federal minimum wage and overtime requirements. If you are “exempt,” this means that your employer is not required by law to give you pay for overtime work. Exempt employees must be paid with a salary and must have certain job requirements. Salaried employees receive a set pay each workweek without taking into account the actual number of hours worked. Just because a worker receives a salary that does not mean the worker cannot be due overtime.

There are several professions that are not included as being in this group but who do get paid with a salary. These include:

• Outside sales employees
• Doctors
• Lawyers
• Teachers
• Certain computer-related occupations if they are paid not less than $27.63 per hour.

Some common problems employees not protected by overtime laws may experience include:

• Reduction in employee’s pay for time missed when sick
• Failure of employers to pay full salary owed each week.
• Management employees who do not actually perform management tasks as set out by the law.
• Employees with degrees that usually apply to the exemptions, but are not using the degree on the job
• Employers confusing acquired job skills with the use of independent judgment

What is an “Executive” position?

In order to be considered an “executive,” which by law excludes your employer from being required to pay overtime, you must meet certain requirements:

• Management as your main duty
• Directing the work of two or more full-time employees
• Having the authority to hire and fire, or make recommendations regarding decisions affecting the employment status of others
• Independently judge your own work
• Receiving a salary
• Not devoting more than 20% of your time to non-management functions (40% in retail and service establishments).

Not all of the requirements must be met all of the time.

What is an “Administrative” position?

In order to be considered an “administrator,” which by law excludes your employer from being required to pay overtime, you must meet certain requirements:

• Office or non-manual work
• Carrying out school administration
• Independently making decisions
• Helping executives with their responsibilities
• Performing specialized or technical work
• Special assignments
• Receiving a salary
• Not devoting more than 20% of your time to work other than that described above (40% in retail and service establishments)

Not all of the requirements must be met all of the time.

What is a “Professional” position?

In order to be considered a “professional” you must meet certain requirements. These may include:

• Advanced knowledge and education in your work
• Work in an artistic field which is original and creative,
• Regular judgment about your work
• Work which is intellectual and varied in character
• Job cannot be calculated in amounts of time
• Receipt of a salary (except doctors, lawyers, teachers and certain computer occupations)
• Not devoting more than 20% of their time to work other than that described above

Not all of the requirements must be met all of the time.

For detail about employer abuses, see Executive, Professional & Administrative Employees at OvertimeScams.us.