Employment Law

Employee Compensation

What are some of the exceptions to the overtime pay requirement?

Some exceptions to the overtime pay provision are executives, administrative employees, professionals and outside sales persons. Executives—those employees with managerial responsibilities—must be paid on a salary basis. Executives are determined more by their actual job duties than their official job title. Administrative employees include those who are treasurers, public relation directors, human resources employees and personnel directors. Administrative employees regularly exercise discretion and independent judgment in their jobs.

Professionals are those who have advanced knowledge or learning. They often have advanced educational degrees in their areas of expertise. Educators, architects and attorneys, for example, fall within the professional exemption to the overtime pay requirements. Outside sales persons must regularly work outside the employer’s main place of business.


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