PrintWhat are the rules surrounding overtime? How much does a person have to make an hour to be exempt from overtime pay?
The Fair Labor Standards Act (FLSA) governs overtime rules. According to the FLSA, if an employee makes an hourly wage, he or she is not exempt from the FLSA's overtime provisions, and thus is entitled to overtime pay.
There are a few exceptions to the hourly-wage rule. For one, highly skilled or technical employees like computer-systems analysts, computer programmers, and software engineers who are paid at least $27.63 per hour generally don't have to be paid overtime.
Otherwise, to be exempt from overtime, the employee must be paid on a weekly basis (at least $250 per week regardless of the number of hours worked), and meet the primary-duty test of one or more of the following exemptions:
Executive. At least 50 percent of their time is spent managing the enterprise or a department of the enterprise in which they are employed. Customarily and regularly directs the work of two or more employees.
Professional. Performance of work requires advanced knowledge acquired by a prolonged course, primarily performs original and creative work in a recognized field or artistic endeavor, or is a teacher. Consistently exercises discretion and judgment.
Administrative. Primarily performs office or nonmanual work directly related to management policies or general business operations. Customarily and regularly exercises discretion and independent judgment.
Outside Salesperson. An employee who sells goods or services offsite. No more than 20 percent of his or her time is spent in nonselling hours.
The rules governing exempt status are complex, so if there are questions regarding individual employees, it's best to confirm their status with legal counsel.