What are white collar exemptions?
What are white collar exemptions?
The key concept that underlies the technical rules is that paying exempt white-collar employees a salary implies that they have discretion to manage their time. They are paid for the general value of their services, not the number of hours worked. And that, precisely, is why they are not entitled to overtime.
What are the exemptions under FLSA?
The five primary exemptions are executive, administrative, professional, computer, and outside sales employees.
What are the FLSA exemption tests?
The FLSA exemption test refers to the status of a job as outlined in the Fair Labor Standards Act. The FLSA determines whether a job is exempt or nonexempt as it relates to overtime obligations.
What are the three tests for the FLSA exemption?
In order to qualify for exemptions under FLSA, employees must meet the criteria in three tests: a salary basis test, a salary level test, and a duties test.
What is white collar salary?
While the median weekly earnings overall is $936, for white full-time employees it is $967 (about $50,284 per year) and for Asian full-time employees it is $1,166 (about $60,632 per year). However, the median weekly earnings for full-time black or African American workers is just $756, which is $39,312 per year.
Who is subject to FLSA?
Generally, the FLSA applies to employees of enterprises that have an annual gross volume of sales made or business done totaling $500,000 or more, and to employees individually covered by the law because they are engaged in interstate commerce or in the production of goods for commerce.
How do I know if my FLSA is exempt?
With few exceptions, to be exempt an employee must (a) be paid at least $23,600 per year ($455 per week), and (b) be paid on a salary basis, and also (c) perform exempt job duties. These requirements are outlined in the FLSA Regulations (promulgated by the U.S. Department of Labor).
What classifies an exempt employee?
An exempt employee is an employee who does not receive overtime pay or qualify for minimum wage. Exempt employees are paid a salary rather than by the hour, and their work is executive or professional in nature.
Who are exempt employees under FLSA?
Employees who are exempt from overtime pay under the Fair Labor Standards Act (FLSA) include salaried professionals who earn more than $23,660 a year as well as some farmworkers, drivers, drivers’ helpers, loaders, mechanics, salespeople who earn commission, seasonal employees, and recreational employees.
What does it mean to be exempt from FLSA?
Being “exempt from the FLSA” means that an employee is not legally entitled to overtime pay, no matter how many hours he or she works. The federal Fair Labor Standards Act (FLSA) sets the laws for which workers qualify for extra hourly pay once they have worked 40 hours during a workweek.
Who is exempt from FLSA?
Executive, administrative, professional, computer, or outside sales workers are usually exempt from the FLSA, but only if their salaries and job duties meet particular specifications.
What is FLSA exempt status?
FLSA exempt status refers to the state of being exempt from the protection provided by the Fair Labor Standards Act. The Fair Labor Standards Act (FLSA) is best known as the law determining the exempt or non-exempt status of jobs and overtime requirements.