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Executive, Administrative, and Professional Employees

Executive Exemption

The executive exemption applies to managerial employees who perform certain job duties and make a certain threshold salary. The minimum salary to qualify for the executive exemption is $455 per week or $23,660 per year (increasing to $913 per week or $47,476 per year in December 2016). Executive employees must also be paid on a "salary basis," which means that they receive the same amount in wages each pay period, regardless of the quality or quantity of their work.

To qualify for the executive exemption, all of the following requirements must also be met:

Management duties include tasks such as interviewing, hiring, and training employees; setting employee's hours and wages; creating work schedules; directing the work of employees; giving feedback to employees as to performance; disciplining employees; dealing with employee complaints; planning and managing company budgets; and determining the types of materials or equipment to purchase.

Administrative Exemption

To qualify for the administrative exemption, an administrative employee must also earn at least $455 per week or $23,600 per year and be paid on a salary basis. In addition, the employee must meet both of the following requirements:

An employee is engaged in administrative work if he or she performs tasks that keep the business running, such as those related to budgeting, accounting, and taxes; insurance; advertising and marketing; purchasing and procurement; quality control; human resources; public relations; and legal and regulatory compliance. Tasks that are central to creating the employer's product or selling the employer's services are not considered administrative work. For example, an executive assistant who manages the day-to-day of the company's CEO might qualify as an administrative employee, while a salesperson selling the company's products would not.

Professional Exemption

To qualify for the professional exemption, a professional employee must also earn at least $455 per week or $23,600 per year and be paid on a salary basis. In addition, the employee must qualify as either a "learned professional" or a "creative professional."

Learned Professional

The learned professional exemption applies to employees who have achieved a certain level of education or received a certain amount of professional training. These employees must meet all of the following requirements:

Examples of learned professionals include doctors, lawyers, pharmacists, dentists, engineers, and scientists.

Creative Professional
The creative professional exemption applies to employees whose work requires invention, imagination, originality, or talent in an artistic or creative field. This may include, for example, actors, artists, novelists, composers, and dancers.
More Overtime Law Topics

Employees Eligible for Overtime

Myth: Salaried Employees Aren't Entitled to Overtime

Salary Basis Requirement

Executive, Administrative, and Professional Employees

Computer Employees

Outside Sales Employees

Independent Contractor Misclassification

Homecare Workers

Compensable Hours

Working Before and After Your Shift

Working From Home

Meal and Rest Periods

Travel Time

Training and Meetings

Rounding of Start and Stop Times

Calculating Overtime Pay



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