As provided by the Fair Labor Standard Act, employees have a right to receive minimum wage and overtime remuneration. However, this act gives an exception for professional employees who do not receive the overtime and minimum wage.
An exempt employee is paid a salary and doesn’t keep track of their hours. However, a non-exempt employee gets paid on an hourly basis and can claim overtime for any extra hours they put in.
How does a court determine if one is an exempt employee?
To determine whether an employee is exempt or non-exempt, there are several factors to be considered:
The salaries level test
For an employee to be exempt, they should be earning a salary that exceeds $100,000 per year.
The salary basis
An exempt employee based on a salary basis is guaranteed a certain amount of money after a certain duration. This amount should not reduce depending on the amount of work done by the said employee. An example is if a plant breaks down, and there is no work to do, an exempt employee will still get the agreed amount of money.
The type of duties test
For a court to determine that you are an exempt employee, you must perform duties considered exempt job duties. This means your job is as a high-level job type, such as management and supervision. Courts use the job description to determine this, but mostly it depends on the kind of work undertaken.
Who are exempted employees in Florida?
If you fall in any of the job classifications below, you are an exempt employee from minimum wage and overtime compensation rules:
If your duty involves supervision, hiring, and firing, or if your job description has management as its primary duty, you are an executive employee. Suppose you are a supervisor, your primary duty and responsibility as an employee becomes supervision. Executive employees get an exemption from both the minimum wage and overtime requirements. You should pass the following tests to qualify:
• You should be on a salary of not less than $455 per week.
• Your role must primarily comprise of management of the organization or a department in the organization.
• You must direct how two or more permanent employees do their work.
• You must have the capacity to hire, and fire or your recommendation for the same should be regarded highly in the organization hierarchy.
Exempt administrative employees
Administrative employees are those employees whose central role entails administrative duties in their places of work. Executive administrators are exempt from minimum wage and overtime compensation in Florida in the Fair Labor Standards Act and its regulation.
You should pass the following tests to qualify:
• You must be on a salary of not less than $455 per week.
• Your primary duties should involve non-manual work and should directly relate to management.
• You should be able to make decisions on behalf of the organization while observing discretion and independent judgment.
You should pass the following tests to qualify as a professional employee:
• Must be on a salary or fee basis, and should receive at least $684 per week.
• Your execution of work should require advanced knowledge. This means the work should be purely intellectual and involves a lot of decision making.
• The knowledge is supposed to be in science or education.
• You attained the knowledge through course work.
Outside salesman exemption
For you to be exempt as an outside salesman, there are two tests that you should pass:
• Your primary role should be making sales or receiving orders from customers.
• You should perform the above tasks away from the employer’s office or place of business.
Vehicles used in marketing and distribution are not a part of the employer’s business place. This is because they move from place to place, with no permanent physical location.
Computer employee exemption
Professionals in the computer industry get exempted from minimum wage requirements in Florida. These professionals include software developers, computer programmers, and other employees whose job revolves around ICT and computers.
Are you unsure of your employment classification or believe you have been wrongly classified by your employer? Reach out to a law firm that deals with labor laws and find out. In case of a wrongful classification, you stand a chance for compensation for any overtime work done.