White-Collar Exemptions from Overtime Pay

Federal and state laws mention that those eligible for overtime pay can receive up to one and one-half of their rate. The key word there is eligible, because not all employees are covered by these laws. A variety of workers from various industries are explicitly exempted from overtime pay, such as domestic workers residing in their employers’ residences, farmworkers, and even those from delivery services and certain sales industries.

But if there is any confusion regarding these exemptions, it is on white-collar jobs with salary basis pay, particularly those who have administrative, executive, and professional positions.

Administrative

An employee who is a significant part of the management and operations of an employer or its customers is considered to have an administrative position, and therefore exempted from overtime pay. This employee usually does office and other work that is considered non-manual. He also typically makes decisions regarding significant issues.

Executive

An employee is categorized as an executive if he is primarily managing a department, division, or any other recognized block in the employer’s company. This person also usually supervises a certain number of employees and has significant power regarding the hiring and firing process within the company.

Professional

An employee is considered a professional if his work and responsibilities require advanced knowledge, usually acquired through advanced studies, regarding a certain field. Usually, this field is scientific or mathematical, but it is not uncommon for artistic and creative fields to be considered professional fields as well.

Eligibility Problems

One of the problems that may arise from these exemptions is when an employer has misclassified an employee. An employee who has been misclassified as having an administrative, executive, or professional position and has worked overtime may not get his due overtime pay.

According to the website of the Leichter Law Firm, those who are eligible to getting overtime pay but has not received any from their employers may take legal action. It is good to know that the law is on the side of the victims. After all, the employer’s management should be responsible enough to ensure the proper classification of their employees.

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