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Salaried employees, who fit the description of "Executive," "Administrative"
or "Professional," are generally exempt under
the law from receiving overtime, regardless of the number
of hours they are required to work in a week. Some employers,
in attempting to avoid paying overtime, make the decision to pay
a salary to workers who do not fit the definition of Executive,
Administrative or Professional. This practice does
not eliminate the obligation of an employer to pay overtime
based on a mathematical calculation of the employee's average
hourly wage to employees who are otherwise eligible.
For Executive, Administrative and Professional employees receiving
salaries, an employer may not generally deduct or "dock"
from wages any amount of time for missed work which is less than
a full day. Doing so may remove the employee from the "exempt"
status under the Wage and Hour Law, and entitle him or her to
overtime pay after 40 hours. An employer may, however, deduct
any of the hours of missed work from an employee's accrued leave
reserves (e.g., vacation, sick leave, compensatory time, etc.)
without jeopardizing the exempt status.
To fall under one of the three exempt categories, the following criteria are used
for quick reference:
1. Executive:
An Executive employee is one who is compensated on a salary basis at a rate of not less
than $455 per week (excluding board, lodging or other facilities),
whose primary duty is the management of the enterprise in which
the employee is employed, who customarily and regularly directs
the work of two or more other employees, and who has the authority
to hire or to fire other employees or whose recommendations as
to hiring or firing, advancement or promotion or change in employee
status are given particular weight.
2. Administrative:
An Administrative employee is one who is compensated on a salary basis at a rate
of not less than $455 per week (excluding board, lodging or other
facilities), and whose primary duty is the performance of office
or non-manual work directly related to the management or general
business operations of the employer, and whose primary duty includes
the exercise of discretion and independent judgment with respect to matters of significance.
3. Professional:
A Professional employee is one who is compensated on a salary basis at a rate of not less
than $455 per week (excluding board, lodging or other facilities),
whose primary duty is the performance of work requiring the knowledge
of an advanced type in a field of science or learning customarily
acquired by a prolonged course of specialized intellectual instruction
or requiring invention, imagination, originality or talent in
a recognized field of artistic or creative endeavor.
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