Video instructions and help with filling out and completing When Form 8815 Exempt

Instructions and Help about When Form 8815 Exempt

Today we're going to talk about exempt and non-exempt employees under the Fair Labor Standards Act or FLSA the FLSA is a federal law that regulates minimum wage and overtime pay among other things most employees covered by the FLSA must be paid at least the minimum wage and be paid at least time-and-a-half the regular rate of pay for any overtime hours they work but the FLSA does exempt certain kinds of employees from the minimum wage and overtime requirements so what does this mean for you and your team let's start out with some basic definitions first in general exempt employees are exempt from minimum wage and overtime requirements the most common exemptions are called white collar exemptions some of these white collar exemptions include executives administrative employees professional employees outside sales and computer professionals however an employee can't just have a white collar profession to count as exempt from overtime pay an employee must meet the standards of all three tests to be exempt these tests include job duties salary basis and salary level let's start with the job duties test as shown before exempt employees often fall into white collar job categories such as executive or administrative employees for each exemption category there is an Associated duties test set forth from the FLSA regulations an exempt employee must meet all of the job duties listed in her respective job duties test next there's the salary basis test in general an exempt employee should be paid a fixed salary or fee for certain exemptions that means her salary won't reduce due to the quality or quantity of work she performs lastly there's the salary level test the current salary threshold is 455 dollars a week or twenty three thousand six hundred and sixty dollars a year so let's review once more with all the new information in general an employee must meet all three tests to be exempt from minimum wage and overtime requirements the first test is a job duties test an exempt employee must pass a job duties test that is specific to her job category the second test includes a salary basis requirement and lastly the third test requires a salary level requirement which is four hundred and fifty dollars a week or 23,000 hundred and sixty dollars a year in general exempt employees are exempt from being paid overtime but if an employee does not meet all three of the tests she may be classified as non-exempt and eligible for overtime pay we know that classifying an employee can be confusing there are also different state laws that vary the requirements on classification and overtime pay if you're looking for more help you can learn more at DOL gov slash overtime