Five Tests for Exempt vs. Non-Exempt Status

Short Test Long Test

Executives

  • Primary Duty: management (50%+)
  • Direct two or more employees
  • Salary: $1,150/month
  • (Other criteria assumed)

Executives

The primary duty is management. The person must direct the work of at least two people, have hiring/firing authority and use all discretionary powers. No more than 20% (40% if retail) of their work week can be spent in non-exempt work.

Administrative Employees

  • Primary duty: office (non-manual)
  • Duties related to management
  • Exercise of discretion
  • Salary: $1,150/month
  • (Other criteria assumed)

 

Administrative Employees

The primary duty is either (1) performing office work related to management policies or general business practices or (2) the administration of a school system. Also included are staff employees who perform special assignments (like purchasing agents or auditors). One test is the use of independent judgment and discretion. No more than 20% (40% if retail) of their work week can be spent in non-exempt work.

Outside Salespeople

  • Sell away from employer’s business
  • No more than 20% non-selling hours
  • No salary test

 

Outside Salespeople

Outside sales people are exempt if they meet two requirements: (1) they are customarily engaged in selling or getting orders for the company’s products or services, and (2) they spend less than 20% of their workweek in non-sales activities. There is no minimum salary requirement.

Professionals

  • Primary duty: work requiring advanced knowledge
  • Exercise of discretion
  • Salary: $1,150/month
  • (Other criteria assumed)

Professionals

The primary work requires either (1) advanced knowledge customarily acquired by specialized study or (2) originality and creativity. They must use discretion and independent judgment. Their work must be intellectual and varied, not standardized. No more than 20% of their work week can be spent in non-exempt tasks.

Computer-Related Occupations

  • Primary duty: work requiring highly specialized knowledge in computer systems analysis, programming and software engineering.
  • Must work independently, without close supervision.
  • Salary: $27.63/hour
  • (Other criteria assumed)

Computer-Related Occupations

The primary work consists of the application of systems analysis techniques and procedures, consulting with users, design, development, documentation, testing or modification of computer systems or programs. They must have highly specialized knowledge and have achieved a level of proficiency in the theoretical and practical application of computer systems analysis, programming and software engineering. They may have managerial and administrative duties as well.

Copyright © OneStop HRTM, Inc. 1998