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Employee Classification

Exempt and Non Exempt

To be classified as an exempt employee under the Administrative, Professional, or Executive exemptions, employees must pass three tests:

1) Salary level test: The salary level required for employees to be exempt is at least $455 per week.

2) Salary basic test: To qualify for exemption, employees must be paid on a salary or fee basis.

3) Duties test: In addition, to qualify for an exemption, employees must pass a administrative exemption duties test.

Administrative Exemption Duties Test

Primary duty is office or non-manual work directly related to management or general business operations of the employer or its customers, or:

Performance of administrative functions directly related to academic instruction or training in an educational establishment or of a department or subdivision of one, and:

Duties include the exercise of discretion and independent judgment with respect to matters of significance.

Executive Exemption Duties Test

Duty consists of the management of the enterprise in which he or she is employed or of a customarily recognized department or subdivision.

Employee customarily and regularly directs the work of two or more other employees.

Employee has the authority to hire or fire other employees or provide suggestions and recommendations that will be given particular weight.

Professional Exemption Duties Test

Primary duty is work that requires knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction (also called the "learned professional" exemption), or

Primary duty is work as a teacher in the activity of imparting knowledge, or

Primary duty is work that requires invention, imagination, originality, or talent in a recognized field of artistic or creative endeavor (also called the "creative professional" exemption).

Outside Sales Exemption Duties Test

Primary duty consists of making sales or obtaining orders or contracts for services or the use of facilities for which a consideration will be paid by the client or customer. Customarily and regularly work away from the employer's place or places of business.

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