Thierman Law Firm

Salaried Workers and Overtime

The four white collar exemptions from overtime are:

► Executive ►Administrative

►Professional ►Commissioned sales

Being salaried without overtime is the result not the cause of an employee being "exempt" from the overtime laws.

The employer must prove the exemption, and most salaried employees today are not truly exempt even though they are salaried. These workers are owed overtime compensation at time and one half, regardless of their job title or the fact that they are technically proficient.

The "rule of thumb" used to determine the qualification for exemption from overtime pay:

Does the employee
A ►spend 50% of his or her working time supervising two or more employees *
or
B ► need an advanced degree in a specialized field to perform the job**
or
C ►engage in a non-production, support function that makes
major administrative policy decisions about the operations of the business***

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* Doing the same work as non-managerial employees, even while supposedly supervising them, does not count as management time. The law explicitly says a working foreman or "straw boss" is not exempt from overtime.
** The requirement of a college degree alone does not make the job professional, especially if a general liberal arts or business degree is sufficient.
*** An employee who makes the product or provides the service that the company is in the business of making or selling is a production worker, even if the product itself is considered administrative in nature.

Thierman Law Firm, A Professional Corporation
Labor & Employment Attorneys
7287 Lakeside Dr.
Reno NV 89511-7652
Phone: (877) 99 LABOR or (775) 284-1500

Admitted in all California and Nevada State Courts, all Federal District Courts located in Nevada and California,
Courts of Appeal for the Ninth and District of Columbia Circuits and the US Supreme Court.