Under the Fair Labor Standards Act (FLSA), employees employees who work more than forty hours per week are entitled to overtime pay. Overtime pay is defined as one-and-one-half times the rate of the employee’s regular pay rate. Violations of overtime labor laws include the failure to include non-discretionary bonuses in the overtime calculation, misclassifying employees as exempt from overtime, and the failure to pay employees for the time that the employee actually works over the forty hour workweek. However there are exempt employees from this rule.
Section 13(a)(1) of the FLSA details exemptions from overtime pay for employees who are outside sales employees, professionals, administrative and/or executive. To qualify for an exemption from the overtime requirements, the employee must generally pass two tests: the salary basis test and the duties test.
The salary test is generally satisfied if the employee is paid a fixed salary without deductions from the salary for quality or quantity of the work. The duties test is me by the actual work being done and is different for administrative, professional and outside salespersons.