As employers, it’s our job to make sure that our workers are getting the pay they deserve – that includes paying out overtime hours as they are accumulated. But there are a number of rules that stipulate how certain professions qualify for overtime and others don’t.
What are those rules? Are they profession-specific, or do they apply as a rule of thumb? And are these federal regulations, or can individual states add or amend national requirements? This can be a lot to figure out on your own, so it’s lucky that actiTIME’s overtime experts have done all the research for you!
Why Are Some Professions Overtime Exempt?
The most pertinent labor law guiding overtime pay is the Fair Labor Standards Act (FLSA), which was implemented back in 1938 to provide an overarching legal structure that employees could consult on issues ranging from minimum wage to overtime to the amount of hours workers can be expected to be on shift. It also clarifies who is actually qualified for overtime.
Overtime, at its inception, was primarily a way to protect blue collar workers from exploitation. Since the FLSA was designed during the Great Depression, helping otherwise vulnerable workers was a top priority.
Thus, the regulations made sure that warehouse stockers, construction workers, factory hands and other manual workers are automatically entitled to overtime pay rates. Also, first responders like police officers, firefighters and paramedics (as well as nurses and paralegals) are protected by the FLSA.
In order to qualify, there have to be two conditions present with regards to the position at hand:
- Weekly income has to be under $684 a week ($35,568 a year);
- They cannot be employed in an industry on the exemption list (see below).
We outline those overtime exempt industries below.
Who Exactly Is Overtime Exempt?
According to the FLSA, there are a number of positions that automatically do not qualify for overtime pay because of the nature of their work. We break them down into the following categories:
Executive employees
These are workers in management and upper-management positions who have at some kind of team operating under them. If you are giving orders on a regular basis, it’s unlikely that you will be able to qualify for overtime.
Administrative employees
This is a holdover from the original intentions of the FLSA: protect blue collar and manual workers. So if you’re a secretary, executive assistant or HR manager, you will not be clocking overtime hours unless you reach an independent agreement with your employers first.
Professional employees
This is a somewhat less definitive category. “Professional” here refers to being a specialized, often white-collared worker. Software engineers, analysts, and programmers would certainly fit, as would many teachers, artists, designers and so on.
Certain sales employees
In some cases, retail or service workers who earn commissions will be exempt automatically from overtime pay. One situation in which this is always the case is with outside sales representatives – they may never qualify from overtime. The same is true when it comes to vehicle salespersons (truck, trailer, auto, farm, boat, aircraft, etc) in cases when they are not employed by manufacturing establishments.
Certain transportation workers
If your employees drive taxis, trains or air carriers, they won’t qualify. Neither will sailors on both American and foreign vessels, and nor will fisher-persons or anyone working in connection to fishing operations. This also includes delivery workers who are paid on approved or local trip rate plans, as well as some motor carrier employees and non-manufacturing based mechanics and parts clerks for auto, truck and farm vehicles.
Certain domestic employees
If someone works as part of a domestic service team and lives inside their employer’s home, they will not qualify for overtime. This also applies to casual babysitters.
Certain seasonal workers
Workers at a number of seasonal recreational centers (like ski resorts and pools) will not be able to claim overtime hours. This includes seasonal farm hands (in most states) as well as many farm employees working even on small farms.
Certain media and communications workers
A number of news and newspaper employees will not be able to claim overtime rates – this includes news editors, announcers and engineers in some non-metropolitan broadcasting stations. Small newspaper workers, switchboard operators, cinema workers and newspaper delivery staff also fall into this category.
There have been some recent changes, however: starting from January 1st, 2020, the FLSA was amended so that the salary level for exempted workers rose from $455 to $684 a week. What this means is that salaried workers in the above positions might now be able to qualify for overtime if they earn less than the new weekly threshold.
For further clarification, see the Local Wage and Hour Division Offices for more details.
Are There Any Regional Exceptions?
Absolutely. Many states have their own additional laws and regulations when it comes to overtime, and many of them expand the list of professions exempt from overtime law. Here are some examples:
California: drivers, student nurses, actors and certain journalists.
Illinois: workers operating in companies that have three or fewer employees, religious organization staff members, all mechanics and salespersons in farm equipment, car, truck and other vehicle companies.
Colorado: machine loaders, students employed either in fraternities/sororities or work-study programs, interstate drivers and property managers.
There are many other nuances when it comes to overtime exemptions, and many of these depend on the actual location where the workers are living. Luckily, we at actiTIME have prepared cheat-sheets for employers looking to brush up on state overtime law. Read here to learn more.
