Compensation Requirements

To be considered exempt from the FLSA's minimum wage and overtime pay requirements under the Regulations, Part 541, employees must meet certain criteria related to their primary job duties and, in most cases, be paid on a salary basis of not less than $455 per week. Exempt employees in certain computer-related occupations may be paid either on a salary basis of at least $455 per week or an hourly rate of not less than $27.63. As has been the case for decades, the compensation requirements do not apply to outside sales employees, teachers, lawyers or doctors. An employee who does not meet all of the tests for exemption is entitled to the minimum wage and overtime pay protections of the Fair Labor Standards Act (FLSA).

This section of the Advisor is designed to help you in understanding these compensation requirements.

If this is your first time reviewing the compensation requirements for the Regulations, Part 541 exemptions, you should begin with Salary or Fee Basis. Please select from the following topics:

Salary Basis or Fee Basis

Absence Under the Family and Medical Leave Act (FMLA)

Deductions

Disciplinary Deductions

Extra Pay

Highly Compensated

Jury Duty, Military Leave and Serving as a Witness

Sick Leave and Disability Leave

Vacation and Personal Time

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