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People Processes - Rhamy Alejeal EPISODE 10, 14th August 2020
How Do You Determine Whether an Employee Qualifies for Exemption?
00:00:00 00:14:34

How Do You Determine Whether an Employee Qualifies for Exemption?

[youtube https://www.youtube.com/watch?v=nTCyKVzjues]

Today’s episode summarizes all we have discussed regarding the FLSA exemption and provides an assessment that we recommend you perform with every single one of your employees.

Even if the information you write down is not entirely accurate, simply having this information on paper for each of your employees makes a huge difference whenever a situation calls for you to recall these critical factors.

On each evaluation sheet, provide the following information:

  • Name
  • Job category/ID
  • Name and title of the evaluator
  • Company name and tax ID
  • Direct supervisor’s name (if applicable)
  • Date of evaluation

There are eight categories under which employees can qualify as exempt:

  • Administrative exemption
  • Learned professional exemption
  • Creative professional exemption
  • Computer employee exemption
  • Outside sales exemption
  • Highly-compensated employee exemption
  • Business owner exemption
  • Executive exemption

On your evaluation sheet, respond “yes” or “no” to each of the listed statements. A response of "yes" to every statement supports a determination of exempt status for that category; a response of "no" to one or more statements supports a determination of nonexempt status. Employees may fall under more than one of these categories. 

Should the employee be determined to be exempt, select all of the categories they fall under, out of the eight. Otherwise, note down that the employee does not qualify for an exemption.