January 08, 2020
Which Jobs Can’t Earn Overtime Pay?
The rules regarding overtime pay can be confusing, but know this: To be exempt from having the ability to accrue overtime pay, employees must meet a salary threshold requirement (at least $684 per week) and certain job duty requirements. In Fact Sheet #17A from the U.S. Department of Labor, the Fair Labor Standards Act spells out whether or not certain jobs qualify for exemption. Note that the exemptions only apply to “white-collar employees” and don’t apply to manual laborers or “blue-collar workers who perform work involving repetitive operations with their hands, physical skill and energy.” Here are some notable exemptions mentioned:
Executive Exemption: The employee must be a manager of the company or of a department or subdivision and have the authority to hire/fire and promote other employees, or at least weigh in on such decisions.
Outside Sales Exemption: The employee must perform a sales role or get orders/contracts for service or use of facilities that will be paid by a client or customer, and they must regularly work outside of the office.
Administrative Exemption: The employee must perform office or non-manual work that directly relates to the management of general business operations of the company or its customers, and they should have the ability to use discretion and judgment regarding policy and decision-making.
Professional Exemption: The employee must perform work that requires advanced knowledge, meaning work that is mainly intellectual in character and that requires the consistent exercise of discretion and judgment. Creative professionals’ work must require imagination, originality or talent in a recognized field of art and creativity.