07/10/2002

13. Do you have any employees who are exempt from the Law?

The following employees are exempt, if they meet the specified tests:

a.) Outside Salesman - provided they spend at least 80% of their time on the "outside" calling on your customers in the capacity of a salesperson. They can "deliver" outside orders they took themselves and not lose this exemption. NOTE: On April 1, 1975, new and increased salary requirements for the exemption of executive, administrative and professional employees became effective, and are included in the "salary tests". Regulations do not require employers to pay these salaries, but are for exemption purposes only. If an employee who is covered by the Act does not meet the salary tests, as well as the duties and responsibilities tests, he does not qualify for the exemption.

b.) Executive Employees - who meet all of the conditions:

1. Primary duty is managing the enterprise or a "customarily recognized" department or subdivision of it.

2. Customarily and regularly directs the work of two or more other employees in the same department or subdivision which they are managing.

NOTE: Employees paid at least $250.00 a week on a salary basis AND WHO MEET THE FIRST TESTS (No. 1 and 2) are exempt even if they do not meet tests 3, 4, 5, and 6. Primary duty is defined as spending 50% of time in management duties.

3. Has the authority to hire and fire, or their suggestions on hiring, firing, promotions or changes on employee status carry weight.

4. Customarily and regularly exercises discretionary powers.

NOTE: The employee who is called upon and DOES use discretion in the day-to-day performance of his duties meets this requirement, BUT the employee whose day-to-day work is completely routinized does not qualify for exemption.

5. Does not devote more than 20% (40% in retail establishment) of their hours worked in the workweek to activities which are not directly and closely related to exempt executive duties.

NOTE: No. 5 does NOT apply to an employee in sole charge of an independent establishment or a physically separated branch establishment, or who owns at least 20% interest in the enterprise, but Requirements No. 1, 2, 3, 4, and 6 MUST be met.

6. Is paid at least $155.00 per week on a salary basis, exclusive of board, lodgings or other facilities.

c). Administrative Employees - who meet all of these conditions:

1. Performs office or non-manual field work directly related to management policies or general business operations of his employer or his employer's customers.

2. Customarily and regularly exercises discretion and independent judgement.

NOTE: Employees paid at lest $250.00 a week on a salary test (above) are exempt even if they do not meet the following three tests.

3. Regularly and directly assists a proprietor, or a bona fide executive or administrative employee, or performs under only general supervision work along specialized technical lines requiring special training, experience, or knowledge, or executes special assignments and tasks under only general supervision.

4. Does not devote more than 20% (40% in retail establishment) of his hours worked in the workweek to activities which are not directly and closely related to his exempt administrative duties.

5. Is paid at least $155.00 a week on a salary or fee basis, exclusive of board, lodging, or other facilities.

REMEMBER: The TITLE alone has little or nothing to do with exemptions, but the exemption is determined on the basis of whether duties, responsibilities, and salary meet ALL of the requirements of an INDIVIDUAL employee.

SECOND WARNING: Credit Managers, Shop Foreman, Purchasing Agents, etc., who spend more than 20% (40% in retail establishments) of their time in non-exempt work come under the provisions of the Wage and Hour Law unless they are paid at least $250.00 per week and meet the first two tests above.

NOTE: Even in they earn $250.00 per week and meet the two tests above, they are NOT EXEMPT if they spend more than 50% of their time in non-exempt work.