Page 40 - Microsoft Word - Updated Book Draft 2 23 2017 (1)

First, some terminology: an “exempt” employee is

one who does not have to be paid overtime, and a “non-

exempt” employee is one who must be paid at one and a

half times their hourly rate for weekly hours over 40.

What you need to remember is that in order to be

exempt from overtime, (i) the employee must be paid on

a salary basis and earn at least the threshold amount per

week; and (ii) their actual duties (i.e., what they really do

all day, not necessarily what their title is) fall within one

of the “exemptions” under the overtime laws.

For many years, the threshold salary was $455 per

week. This meant that as long as an employee was

making at least that amount, they might be “exempt” if

they were performing exempt duties, but anyone making

less than that amount had to be paid overtime no matter

what their job was.

36| Rules of the Road