There are three basic tests an employee must meet to qualify as an exempt employee.
We’ve sifted through the information and wanted to share the Department of Labor’s three basic tests. If an employee meets these criteria, the employee is exempt.
- The employee is paid a fixed salary.
- The employee’s salary is at least $455/week or $23,660/year.
- The employee’s duties must be primarily be associated with duties of exempt executive, administration, professional, outside sales, or computer employees.
The Department of Labor has developed a guide specifically for small businesses. It’s packed with helpful explanations and detailed information to help you determine who is exempt and who is non-exempt, including duties tests for each category of exempt employees (see pages 6-9 of the guide).