What are the requirements to classify a job as exempt from overtime?
Exempt classification entails two tests: the salary test ($540.00 weekly in California) and the duties test. The duties tests are complex but briefly they are:
Executive exemption: more than half the time the incumbent supervises/ manages the equivalent of 2 or more people in the same department.
Administrative exemption: more than half the time the incumbent is exercising independent judgment and discretion in matters of significance to the business or the client’s business.
Professional exemption: more than one half the time the incumbent is exercising independent judgment and discretion and (1) is certified or licensed in an enumerated profession or (2) is engaged in an occupation recognized as a learned or artistic profession.
Outside Salesperson exemption: more than half the time, the incumbent is away from the employer’s place of business selling, or obtaining orders or contracts.
Computer professional exemptions: incumbents in the computer software field who are paid on an hourly basis of not less that an annually indexed rate (currently $44.63 per hour) and more than half the time are involved in intellectual or creative work that involves the exercise of discretion and independent judgment. In addition, such persons must be engaged in duties of a high level concerning computer systems, software or hardware. All hours worked must be paid at the base rate ($44.63).