What You Need to Know About Overtime Pay

The law requires employers to pay employees minimum wage for all hours worked and any nonexempt employees must be paid the appropriate overtime pay rate for overtime hours worked. While that general rule may seem simple, there are many factors to consider when applying it in practice.

• White Collar . They are often referred to as “white collar” employees. To qualify for a white collar exemption, the employee must meet certain tests regarding his/her job duties and must receive at least a certain weekly salary, as set by law.
• Executives . The executive exemption applies to managers who direct the work of at least two other full-time employees. This type of employee often has the authority to make hiring and firing decisions for the business.
• Administrators . The administrative exemption applies if the employee’s main job duty is office work. In other words, this type of employee performs non-manual work that relates to the management or operations of the business. An administrator typically has discretion in making important decisions for the business.
• Professionals . This type of employee has typically acquired an advanced degree or has specialized knowledge obtained by attending prolonged schooling.
• Outside sales . If the employee’s primary job is to make sales calls which require him/her to regularly be away from the employer’s place of business, an exemption may apply.