Fair Labor Standards Act (FLSA)
The Fair Labor Standards Act requires that most employees in the United States be paid at least the federal minimum wage for all hours worked, and that they receive overtime pay at a rate of time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek.
However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees, including individuals employed as computer systems analysts, programmer, software engineers and several others who perform certain job duties.
In order too qualify for an exemption, employees generally must meet certain tests regarding their job duties and they must be paid on a salary basis, receiving not less than $455 per week (NOTE – this requirement increases to $913 per week, effective December 1, 2016). Job titles do not determine exempt status. In order for an exemption to apply, an employee’s specific job duties and salary must meet all the requirements set forth in the Department’s regulations.