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Salaried Exempt in Wyoming


Posted by Tamara

Do Wyoming employers have to pay overtime to their salaried employees?

It depends. The Fair Labor Standards Act (FLSA) mandates that employees who work more than 40 hours in one work week receive overtime pay. The rate of pay is 1.5 times the employee’s average hourly rate. FLSA also allows employers to exempt certain occupations from overtime pay. These occupations usually include employees who are paid a salary instead of hourly wages.

Not all of the salaried employees are exempt, though. The FLSA divides salaried employees into two categories: salaried exempt (ineligible for overtime) and salaried non-exempt (entitled to overtime for more than 40 hours in one work week).

Understanding who is exempt and who isn’t can be confusing, because many different factors are involved.

The first checkpoint is straightforward. Without exception, an employee who makes less than $455 per week, regardless of occupation, is entitled to overtime pay.

Checkpoints beyond that get a little more complicated. FLSA allows employers to exempt outside salespeople, employees who earn more than $100,000 per year for non-manual labor, administrative employees, highly paid computer employees, executives, and professionals (with advance degrees) from overtime.

Yet, working in one of these occupations doesn’t automatically exempt the employee from overtime. The specific duties of the job also have to be taken into account.

For an executive to be exempt from overtime, he or she must direct the work of two or more employees. Simply giving an employee the title of “manager” doesn’t automatically place him or her in the executive category.

To be classified as salaried exempt, administrative employees must be in a position to exercise their own judgment in significant company matters. An administrative employee who decides which vendors to buy from would be considered salaried exempt. The administrative employee who places the orders to the vendors would be salaried non-exempt, and eligible for overtime pay.

Emergency room doctors and pharmacists are classified as salaried exempt, because they are professionals with advanced degrees. Artists and sculptors are exempt, too, because they are professionals with advanced knowledge.

 

 

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