Below are examples of common scenarios to help you identify if your employee is exempt or not.
For additional guidance, consult the DOL Reference Sheet.
Hours Per Week: 40-45
Total Annual Compensation: $45,000 plus benefits
Why: Typically, employees with managerial responsibilities that satisfy the executive duties test and have a salary that meets or exceeds $35,568 are exempt from overtime regardless of hours worked.
Hourly wage: $12
Hours per week: 20–30
Why: Hourly workers who earn less than $684 a week are not exempt and must be paid overtime should their hours exceed 40 for the week.
Total Annual Compensation: $80,000 plus benefits
Hours per week: 30-35
Why: Programmers typically fall under the “Computer Employee Exemption” category when they meet the duties test requirement and have a salary that meets or exceeds $35,568. They would be exempt from overtime regardless of hours worked.
Still not sure? Contact us to ensure you’re properly classifying employees to avoid costly compliance fines.