Under the federal FLSA and state labor codes, an employee is exempt from overtime pay only if they satisfy BOTH the statutory salary threshold and specific job duty requirements. The primary exemptions are:
• Executive Exemption: Primary duty is managing an enterprise or recognized subdivision, regularly directing two or more employees, and possessing hiring/firing input.
• Administrative Exemption: Primary duty is non-manual office work directly related to business management or operations, requiring independent judgment on matters of significance.
• Professional Exemption: Primary duty requires specialized advanced knowledge (Learned Professional) or recognized artistic/creative originality.
• Computer & Outside Sales Exemptions: Specialized statutory exemptions.
To qualify, employees must earn at least the statutory salary threshold ($684.00/wk federal enforcement baseline; $1,352.00/wk in California; $1,111.23/wk in Colorado; $1,275.00/wk in New York Downstate). Hourly employees, blue-collar workers, first responders, and manual laborers cannot be classified as exempt.