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Salaried Exempt in Missouri

Posted by Tamara

Most Missouri employers consider salaried employees ineligible for overtime, but that isn’t always the case. Depending on the occupation, salaried employees can qualify for overtime pay.

According to the Fair Labor Standards Act (FLSA) employees are entitled to 1.5 times their usual hourly rate when they work more than 40 hours in one work week. There are exceptions to this law, specifically salaried employees, but FLSA categorizes salaried employees in two ways: salaried-exempt and salaried non-exempt.

This is where employers can get confused. Classifying an employee as salaried exempt or salaried non-exempt depends on several different factors. Included below are some general guidelines.      

To be classified as salaried-exempt the employee must earn more than $455 per week, or work in one of the following occupations that the federal laws allows to be exempt from overtime.

  • Executives: persons in a supervisory position who are in charge of the duties for two or more other employees.
  • Professionals with advanced degrees –Employees with advanced knowledge, such as doctors or lawyers
  • Creative Professionals –Workers who earn a living as a creative professional, including sculptors and artists.
  • Administrative employees: persons with the power to use their own judgment when dealing with important business matters
  • Computer employees: highly paid computer workers, including system analysts, computer programmers and software engineers
  • Outside salespeople and employees whose annual salary is over $100,000

These guidelines mean that an employer can’t simply give an employee the title of manager to place him or her in the executive category. The worker’s exact duties must be considered.

An example of a salaried-exempt administrative employee would be a purchasing agent with the power to choose which vendors the company will use. This worker would be exempt from overtime. The administrative employee who simply places the orders, however, would be salaried non-exempt and entitled to overtime pay.

These guidelines apply to the federal FLSA. Some states have established additional or different guidelines. That means an employee could be ineligible for overtime under federal law, but be entitled to overtime pay under state law.


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