Compensation

Salary Basis:

Salary basis means that an employee is paid a fixed wage on a predetermined period (weekly, bi-weekly, monthly, etc). This wage does not change due to missed hours or work quality/quantity, though their wage may change if they are on unpaid leave. If there is no work for the employee but they are ready to work, wages cannot be withheld.

Salary Level Test:

Current salary levels are $684 per week (effective Jan 2020)

Employers may use nondiscretionary and incentive bonus/payments to account for up to 10% of salary level

Exemption Categories & Exemption Category

Summary

Executive

• Paid on Salary Basis

• Manages the business or department/subdivision of business

• Must supervise 2+ employees

• Ability to hire/fire or rec to hire/fire
  

Administrative

• Paid on Salary Basis

• Duties include only office / non-manual labor and related to business operations

• Can make choices / business decisions that may affect the business (discretion or independent judgement)
  

Professional - Learned

• Paid on Salary Basis

• Duties require advanced knowledge, specialized training that is intellectually based

• Requires discretion and judgement

• Fields include science or learning
  

Professional - Creative

• Paid by Salary basis

• Primary duties must be invention, imagination, talent, originality of artistic or creative fields of work.
  

Outside Sales

• Primary duty must be to make sales OR procure contracts / obtain orders

• Must do most work on the road / away from the business.
  

Computer

• Paid by Salary basis OR no less than $27.63 per hour

• Must be one of the following

  • Computer system analyst

  • Computer Programmer

  • Software Engineer

  • Or similar title

• Duties must include some / all of the following

  • System analysis – determining best course of action for hardware, customer needs, software

  • Design, document, test, create software, including prototypes based on customer requirements / requests / needs

Exceptions

These fields are considered a Learned Professional and qualify for an exemption when the data in the chart above is met. Their work must require advanced knowledge that cannot be acquired through a high school education. This type of job will require the use of discretion and judgement. Exemptions can only be made when the professional is performing the duties of their advanced knowledge meaning a teacher must be licensed and teaching, same for a lawyer and doctor. A licensed doctor who is not performing medicine is not exempt. Further doctors in residency and lawyers in internships are exempt.

https://www.dol.gov/agencies/whd/fact-sheets/17d-overtime-professional