Who are exempt employees? Exempt employees are those employees who have been exempted from the provisions of overtime as laid down by Fair Labor Standards Act. The reason arises from their responsibilities and duties related to positions in which they are supposed to make decisions.
The provision of being exempted or non-exempted comes from the fact about how much money the employees are making as well as the kind of responsibilities they are undertaking. The human resources professionals must be aware of the provisions to work in the systems which are part of the global talent management.
The exempt employees are required by most organizations to work for as many hours as it requires to get their work done. This is the reason why exempt employees have been given more liberty and the flexibility than the non-exempt employees to come to the workplace and leave as they please. It’s because of the nature of the work they do.
The FLSA states that some professions are excluded from the purview of FLSA overtime regulations. There are two kinds of complete exclusions:
- Some jobs like movie theatre workers and agricultural workers
- Jobs which are governed by another mandate or federal statute
But not just about everyone can be categorized as an exempt employee. There are stringent guidelines overseeing such exemption. It can’t be done for the sake of easy calculation of salary, even though the employee may agree. Here are the descriptions of which jobs can be called as exempt:
Outside Sales: Meeting with clients and customers can happen anytime anywhere. In such situations, the jobs are exempted. Now, there are some sales jobs which are based internally such as call center employees. Such jobs earn such salesperson some commission on the sales they do and yet they earn the eligibility to earn overtime pay.
Managerial Employees: Some managers are in authority of only two employees and have the power to hire or fire an employee. Also, such managers are involved in overseeing managerial tasks and processes. For somebody who sits at the cashier registering people and the earnings isn’t qualified to be exempted.
Learned Professionals: Knowledge-based workers also qualify as exempted employees if they work independently. Doctors, registered nurses (exclusive of licensed practical nurses- LPNs), lawyers, consultants, teachers, and accountants (receivable clerks) with independent responsibilities are exempted
Administrative Professionals: Individuals who are in administrative positions are almost always exempt because of the kind of their job responsibilities. These individuals are usually in white collar positions and keep the business up and running. High expertise and knowledge-based skills are the attributes which make them exempted from overtime like finance, human resources, marketing, and IT.
Minimum Salary: Exemption from overtime comes at a particular salary level. The minimum salary level for exemption is $455 per week or $23,600 per year. It’s currently under the consideration of the Department of Labor (DoL) which is thinking to raise the level to $50,440 per year.
As an employer or even working as a human resources professional, it’s imperative to know of the legal regulations. HR certificate programs must be done from time to time to be aware of what’s changing and how it’s going to change an organization, that is, the implications.
The point of having gone under an HR certificate program isn’t related much to knowing it as much as it to prove to the prospective employers that you know the mandates.
Talking from an employer’s viewpoint, HR certificate programs let them have an assurance that the HR people they are hiring are adept at what they are doing.