--- title: Job Titles Alone Don’t Determine Who’s Exempt from Overtime Pay description: In light of the new Department of Labor overtime rules under the Fair Labor Standards Act, our experts discuss who qualifies as an exempt employee image: https://blog.axcethr.com/hubfs/Stock%20images/Attentive%20business%20team%20working%20on%20laptops%20in%20a%20bright%20office.jpeg --- - [Client Portal](https://www.axcethr.com/client-services/) - [Employee Login](https://www.axcethr.com/client-services/) [![AxcetHR Solutions Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png)](https://www.axcethr.com/) - [About Us](https://www.axcethr.com/about-us/) - [Corporate Philantropy](https://www.axcethr.com/about-us/corporate-philanthropy/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Values and Culture](https://www.axcethr.com/about-us/values-and-culture/) - [Kansas PEO](https://www.axcethr.com/about-us/kansas-peo/) - [Missouri PEO](https://www.axcethr.com/about-us/missouri-peo/) - 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[Human Resources](https://blog.axcethr.com/topic/human-resources) - [Payroll Administration](https://blog.axcethr.com/topic/payroll-administration) - [Employee Safety & Risk Management](https://blog.axcethr.com/topic/employee-safety-risk-management) - [Employee Benefits](https://blog.axcethr.com/topic/employee-benefits) - [All about COVID-19 in the Workplace](https://blog.axcethr.com/topic/covid19) - [Kansas & Missouri HR News](https://blog.axcethr.com/topic/kansas-and-missouri-hr-news) - [Kansas City Interest News](https://blog.axcethr.com/topic/kansas-city-interest-news) - [PEO/HRO](https://blog.axcethr.com/topic/peo) - Choose Topic: - [Human Resources](https://blog.axcethr.com/topic/human-resources) - Payroll Administrations - [Employee Safety & Risk Management](https://blog.axcethr.com/topic/employee-safety-risk-management) - [Employee Benefits](https://blog.axcethr.com/topic/employee-benefits) - [PEO](https://blog.axcethr.com/topic/peo) # Job Titles Alone Don’t Determine Who’s Exempt from Overtime Pay By [Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/author/jeanette-coleman) on [Mar 29, 2019](https://blog.axcethr.com/job-titles-alone-dont-determine-whos-exempt-from-overtime-pay) 5 min read [0 comment(s)](https://blog.axcethr.com/job-titles-alone-dont-determine-whos-exempt-from-overtime-pay#comments-listing) Share this: - - - - [whatsapp://send?text=https://blog.axcethr.com/job-titles-alone-dont-determine-whos-exempt-from-overtime-pay](whatsapp://send?text=https://blog.axcethr.com/job-titles-alone-dont-determine-whos-exempt-from-overtime-pay) - [mailto:?subject=Job%20Titles%20Alone%20Don’t%20Determine%20Who’s%20Exempt%20from%20Overtime%20Pay&body=https://blog.axcethr.com/job-titles-alone-dont-determine-whos-exempt-from-overtime-pay](mailto:?subject=Job%20Titles%20Alone%20Don’t%20Determine%20Who’s%20Exempt%20from%20Overtime%20Pay&body=https://blog.axcethr.com/job-titles-alone-dont-determine-whos-exempt-from-overtime-pay) ![Job Titles Alone Don’t Determine Who’s Exempt from Overtime Pay](https://blog.axcethr.com/hs-fs/hubfs/Stock%20images/Attentive%20business%20team%20working%20on%20laptops%20in%20a%20bright%20office.jpeg?width=1000&name=Attentive%20business%20team%20working%20on%20laptops%20in%20a%20bright%20office.jpeg) Under the Fair Labor Standards Act (FLSA), “nonexempt” U.S. employees must be paid at least the federal minimum wage and one-and-one-half times their regular rate of pay for any hours they work over 40 in a workweek. Your business is not required to pay overtime to “exempt employees.” ### To qualify for an overtime pay exemption, workers must meet the following FLSA criteria: - They must be paid a salary of no less than $27.63 an hour or $455 per week – a figure the Department of Labor on March 7, 2019, proposed increasing to $679 per week. - Their job duties must meet DOL requirements. The DOL, which administers and enforces the FLSA, provides specific criteria that must be met before an employee may be classified as exempt and ineligible for overtime pay. FLSA “white-collar” exemptions cover workers employed as executive, administrative, outside sales, and professional employees, as well as certain computer employees. Be careful, though. Job titles alone do not determine whether an employee is exempt. [![New call-to-action](https://no-cache.hubspot.com/cta/default/2652187/95704a1c-ecaa-4535-a30f-89b765746eed.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/95704a1c-ecaa-4535-a30f-89b765746eed) ## **Executive Exemption** Exempt executives must meet all of the following job tests: - They must earn at least $455 per week. Again, this pay rate requirement may increase to $679 per week, as the DOL has proposed, at some future date. - Their primary responsibility must be in management, so they must manage the enterprise or one of its subsidiaries or departments. - They must serve as supervisors who regularly direct the work of at least two full-time employees (or their equivalent). - They must have the authority to hire and fire other employees or to influence decisions regarding the hiring, termination, advancement, promotion and other changes in status of other employees. ## **Administrative Exemption** To qualify for exemption under the administrative clause of the FLSA, employees must earn a salary of at least $455 per week and perform all of the following primary duties: - Office or “non-manual work” tied to the management or general business operations of their employers or their employers’ customers. This does not include secretarial and clerical work. - “Discretion and independent judgment with respect to matters of significance” – meaning these employees must regularly analyze and compare multiple courses of action and recommend one based on their evaluation of the options. A matter is “significant” if it has a major impact on the business. ## **Outside Sales Exemption** Exempt outside sales employees must meet all of the following tests: - Their primary duty must be selling products or services or generating orders or contracts for services for which a client or customer will pay; and - They must regularly perform their jobs away from their employers’ places of business. **[![DOL to Announce Overtime Rule Changes This Year](https://no-cache.hubspot.com/cta/default/2652187/43c2276b-38a8-4795-b66f-1e04a94527cf.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/43c2276b-38a8-4795-b66f-1e04a94527cf)** ## **Computer Employee Exemption** To qualify for the computer employee exemption: - Employees must be paid on a salary or fee basis at a rate of no less than $455 per week or $27.63 an hour; and - Their job title must be a computer systems analyst, computer programmer, or software engineer, or they must be considered a similarly skilled worker in the field who: 1. Applies systems analysis techniques and procedures and consults with users to establish hardware, software or system functionality specifications; 2. Designs, develops, documents, analyzes, creates, tests or modifies computer systems or programs based on and related to user or system specifications; 3. Designs, documents, tests, creates or modifies computer programs associated with machine operating systems; or 4. Performs a combination of the duties described above that require the same level of skills. ## **Professional Exemption** “Professional” work requires the consistent exercise of discretion and judgment, distinguishing it from positions involving routine mental, manual, mechanical, or physical labor. A professional employee generally uses advanced knowledge attained through education beyond high school to analyze, interpret or make deductions based on varying facts or circumstances. There are two types of exempt professional employees: **learned professionals** and **creative professionals**. To qualify for the **learned professional** exemption, employees must meet all of the following tests: - Their salary or earned fee must be at least $455 per week; - Their primary duty must be performing work that requires “advanced knowledge,” which the FLSA defines as work that is mostly intellectual in character and includes work requiring discretion and judgment skills; - Their advanced knowledge must be in fields of science or learning, including: - Law, medicine, theology, accounting, actuarial computation, engineering, architecture, teaching, sciences, and pharmacy; - They must work in a profession that requires specialized academic training – for example, a specific academic degree or a combination of work experience and intellectual instruction. ## Creative Professional Exemption To qualify for the **creative professional** exemption, employees must meet every one of these tests: - They must be compensated either on a salary or fee basis at a rate of at least $455 per week or $27.63 an hour; - Their primary duty must be performing work that requires invention, imagination, originality or talent in recognized artistic or creative fields, including: - Acting, music, musical composition, singing, painting, writing, illustration, and journalism if a journalist originates content or contributes a unique interpretation or analysis to a news product. Another category of white-collar exemptions is known as **highly compensated employees**, which comprises workers who regularly perform office or “non-manual” work and earn $100,000 or more annually. They are exempt and ineligible for overtime pay under the FLSA if they regularly perform at least one of the duties of an exempt executive, administrative or professional employee. ## **[![overwhelmed with HR? Contact Axcet HR Solutions](https://no-cache.hubspot.com/cta/default/2652187/interactive-190102305567.png)](https://blog.axcethr.com/hs/cta/wi/redirect?encryptedPayload=AVxigLIDF%2BBSQqaclOn8TXq4QSfHsOGjlntX9AVSHFPV4Z0%2BzxozgMOoiN95xwu4LqG5%2FYYkDEEplJvqehaUYcgso7aWoyd4JZLcpTc3jK7%2Fsrz4Zt01KjKmjTjqaSL044Cg5K8AYNUi5uplqolWisaAhe82Isk%2B1su3tSkZFqDKZD%2FS05D0Mpp4EvqoisdsXq2PbnU%3D&webInteractiveContentId=190102305567&portalId=2652187)** ## **Proper Classification Protects Your Business and Your Team** Misclassifying employees based solely on job titles can lead to costly compliance issues and erode employee trust. By understanding and applying the Fair Labor Standards Act (FLSA) criteria—beyond just titles—you safeguard your business from potential audits and penalties. At Axcet HR Solutions, we specialize in helping small and mid-sized businesses navigate complex wage and hour regulations. Our certified HR professionals can assist you in conducting accurate employee classifications and implementing compliant pay practices. [Let us help you build a compliant, confident workplace.](https://www.axcethr.com/schedule-consultation/) For more information about how to classify employees who hold occupations or work in industries cited in FLSA regulations, visit the [DOL’s Wage and Hour Division website](http://www.wagehour.dol.gov).   [![New call-to-action](https://no-cache.hubspot.com/cta/default/2652187/bb8b8bf9-4a4b-4e3f-9d49-d92d1913a3f7.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/bb8b8bf9-4a4b-4e3f-9d49-d92d1913a3f7) [![Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/hs-fs/hubfs/Jeanette-04.jpg?width=80&height=80&name=Jeanette-04.jpg)](https://blog.axcethr.com/author/jeanette-coleman) Written by #### [Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/author/jeanette-coleman) Jeanette Coleman, SPHR, SHRM-SCP, is the Director of Human Resources at Axcet HR Solutions, where she has contributed her expertise for over 21 years. As a leader in the HR industry, she holds advanced certifications as a Senior Professional in Human Resources (SPHR) and SHRM-Senior Certified Professional (SHRM-SCP). Jeanette oversees HR strategy and operations, ensuring Axcet delivers exceptional HR services that help small and mid-sized businesses stay compliant and grow. With a Master’s degree in Human Resource Management from Keller Graduate School and a Bachelor of Science in Business Administration from Kansas State University, Jeanette is well-equipped to lead and support clients in navigating complex HR challenges. Throughout her 15-year tenure as Director of Human Resources, she has been instrumental in positioning Axcet as the Midwest’s largest and premier Professional Employer Organization (PEO). Her previous roles at Axcet include Director of Employee Benefits and Senior HR Consultant, where she gained extensive experience in HR outsourcing, and employee risk management. Jeanette’s expertise has been recognized through industry and regional publications. She co-authored the article “High-Touch in the Age of High-Tech: How PEOs Can Embrace AI Without Losing Their Humanity” (https://peoinsider.org/articles/high-touch-in-the-age-of-high-tech-how-peos-can-embrace-ai-without-losing-their-humanity/) for PEO Insider (March 2026), alongside Jo McClure, and was featured in Ingram’s Magazine in a Q&A (https://ingrams.com/article/qa-with-jeanette-coleman/) discussing generational change, technology, and workplace culture. These contributions reflect her perspective on balancing innovation with the human side of HR. Jeanette’s leadership reflects her deep commitment to helping businesses thrive through strategic, compliance-driven HR solutions. Through her writing, she shares insights on HR strategy, compliance, and best practices to help employers confidently manage their workforce. Published in: PEO Insider and Ingram's Read more [View all posts →](https://blog.axcethr.com/author/jeanette-coleman) ### Get HR Updates ### Table of Contents ### Related Resources - [services Human Resources](https://www.axcethr.com/services/human-resources/) - [services HR Compliance](https://www.axcethr.com/services/human-resources/hr-compliance-specialist/) #### [Know Before They Go: How to Ease the Pain of Employee Departures ![Know Before They Go: How to Ease the Pain of Employee Departures](https://blog.axcethr.com/hubfs/Stock%20images/Businessman%20moving%20into%20a%20new%20office%20holding%20a%20box.jpeg)](https://blog.axcethr.com/know-before-they-go-how-to-ease-the-pain-of-employee-departures) #### [![Fear-Based Reaction to #MeToo Can Be a Dangerous Path to Discrimination Claims](https://blog.axcethr.com/hubfs/Stock%20images/Two%20young%20business%20collegue%20standing%20in%20office.jpeg) Fear-Based Reaction to #MeToo Can Be a Dangerous Path to Discrimination Claims](https://blog.axcethr.com/fear-based-reaction-to-metoo-can-be-a-dangerous-path-to-discrimination-claims) ## Let us know what you think... ![AxcetHR Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png) - [Why Axcet](https://www.axcethr.com/why-axcet/) - [What We Stand For](https://www.axcethr.com/about-us/what-we-stand-for/) - [Expertise](https://www.axcethr.com/expertise/) - [Employee Benefits](https://www.axcethr.com/services/employee-benefits/) - [Human Resources](https://www.axcethr.com/services/human-resources/) - [Payroll Services](https://www.axcethr.com/services/payroll-and-tax-administration-services/) - [Risk Management](https://www.axcethr.com/services/workers-comp-and-employee-safety-risk-management/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Subscribe to Latest Resources](https://www.axcethr.com/subscribe-to-the-latest-resources/) - [Resource Library](https://www.axcethr.com/expertise/resource-library/) - [\[ Client Portal \]](https://www.axcethr.com/client-services/) - - - - - Search for: Copyright © 2023 Axcet HR Solutions – Kansas City's PEO Since 1988 | [Privacy Policy](https://www.axcethr.com/privacy-policy/) | [Terms and Conditions](https://www.axcethr.com/terms-conditions/) | [**Join our Team – Careers »**](https://axcethrsolutions.prismhr-hire.com/) 10975 Grandview Drive Suite 200, Corporate Woods Building 27, Overland Park, KS 66210 | Call us: 913-383-2999 *The IRS does not endorse any particular For more information on [certified professional employer organizations](https://www.axcethr.com/why-axcet/certified-peo/), go to [www.irs.gov](https://www.irs.gov).* Remove cookies ![](https://dc.ads.linkedin.com/collect/?pid=43031&fmt=gif) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Jeanette Coleman, SPHR & SHRM-SCP", "url" : "https://blog.axcethr.com/author/jeanette-coleman" }, "dateModified" : "2025-05-15T18:04:57.912Z", "datePublished" : "2019-03-29T17:35:10.000Z", "headline" : "Job Titles Alone Don’t Determine Who’s Exempt from Overtime Pay", "image" : [ "https://blog.axcethr.com/hubfs/Stock%20images/Attentive%20business%20team%20working%20on%20laptops%20in%20a%20bright%20office.jpeg" ], "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/job-titles-alone-dont-determine-whos-exempt-from-overtime-pay", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.axcethr.com/hubfs/_logo_axcethr_primary.png" }, "name" : "Axcet HR Solutions" } } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.axcethr.com/#organization", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Kansas City", "addressRegion" : "MO" }, "aggregateRating" : { "@type" : "AggregateRating", "bestRating" : "5", "ratingValue" : "5", "reviewCount" : "100" }, "areaServed" : { "@type" : "Country", "name" : "United States" }, "award" : [ "IRS Certified Professional Employer Organization (CPEO)", "Award-Winning HR Solutions Provider", "SHRM Certified HR Professionals", "HRCI Certified HR Professionals" ], "contactPoint" : { "@type" : "ContactPoint", "areaServed" : "US", "availableLanguage" : "English", "contactType" : "Customer Service" }, "description" : "Award-winning Professional Employer Organization (PEO) providing comprehensive HR solutions, payroll services, employee benefits, and risk management to small and mid-sized businesses. 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Your business is not required to pay overtime to “exempt employees.” To qualify for an overtime pay exemption, workers must meet the following FLSA criteria: They must be paid a salary of no less than $27.63 an hour or $455 per week – a figure the Department of Labor on March 7, 2019, proposed increasing to $679 per week. Their job duties must meet DOL requirements. The DOL, which administers and enforces the FLSA, provides specific criteria that must be met before an employee may be classified as exempt and ineligible for overtime pay. FLSA “white-collar” exemptions cover workers employed as executive, administrative, outside sales, and professional employees, as well as certain computer employees. Be careful, though. Job titles alone do not determine whether an employee is exempt. Executive Exemption Exempt executives must meet all of the following job tests: They must earn at least $455 per week. Again, this pay rate requirement may increase to $679 per week, as the DOL has proposed, at some future date. Their primary responsibility must be in management, so they must manage the enterprise or one of its subsidiaries or departments. They must serve as supervisors who regularly direct the work of at least two full-time employees (or their equivalent). They must have the authority to hire and fire other employees or to influence decisions regarding the hiring, termination, advancement, promotion and other changes in status of other employees. Administrative Exemption To qualify for exemption under the administrative clause of the FLSA, employees must earn a salary of at least $455 per week and perform all of the following primary duties: Office or “non-manual work” tied to the management or general business operations of their employers or their employers’ customers. This does not include secretarial and clerical work. “Discretion and independent judgment with respect to matters of significance” – meaning these employees must regularly analyze and compare multiple courses of action and recommend one based on their evaluation of the options. A matter is “significant” if it has a major impact on the business. Outside Sales Exemption Exempt outside sales employees must meet all of the following tests: Their primary duty must be selling products or services or generating orders or contracts for services for which a client or customer will pay; and They must regularly perform their jobs away from their employers’ places of business. Computer Employee Exemption To qualify for the computer employee exemption: Employees must be paid on a salary or fee basis at a rate of no less than $455 per week or $27.63 an hour; and Their job title must be a computer systems analyst, computer programmer, or software engineer, or they must be considered a similarly skilled worker in the field who: Applies systems analysis techniques and procedures and consults with users to establish hardware, software or system functionality specifications; Designs, develops, documents, analyzes, creates, tests or modifies computer systems or programs based on and related to user or system specifications; Designs, documents, tests, creates or modifies computer programs associated with machine operating systems; or Performs a combination of the duties described above that require the same level of skills. Professional Exemption “Professional” work requires the consistent exercise of discretion and judgment, distinguishing it from positions involving routine mental, manual, mechanical, or physical labor. A professional employee generally uses advanced knowledge attained through education beyond high school to analyze, interpret or make deductions based on varying facts or circumstances. There are two types of exempt professional employees: learned professionals and creative professionals. To qualify for the learned professional exemption, employees must meet all of the following tests: Their salary or earned fee must be at least $455 per week; Their primary duty must be performing work that requires “advanced knowledge,” which the FLSA defines as work that is mostly intellectual in character and includes work requiring discretion and judgment skills; Their advanced knowledge must be in fields of science or learning, including: Law, medicine, theology, accounting, actuarial computation, engineering, architecture, teaching, sciences, and pharmacy; They must work in a profession that requires specialized academic training – for example, a specific academic degree or a combination of work experience and intellectual instruction. Creative Professional Exemption To qualify for the creative professional exemption, employees must meet every one of these tests: They must be compensated either on a salary or fee basis at a rate of at least $455 per week or $27.63 an hour; Their primary duty must be performing work that requires invention, imagination, originality or talent in recognized artistic or creative fields, including: Acting, music, musical composition, singing, painting, writing, illustration, and journalism if a journalist originates content or contributes a unique interpretation or analysis to a news product. Another category of white-collar exemptions is known as highly compensated employees, which comprises workers who regularly perform office or “non-manual” work and earn $100,000 or more annually. They are exempt and ineligible for overtime pay under the FLSA if they regularly perform at least one of the duties of an exempt executive, administrative or professional employee. Proper Classification Protects Your Business and Your Team Misclassifying employees based solely on job titles can lead to costly compliance issues and erode employee trust. By understanding and applying the Fair Labor Standards Act (FLSA) criteria—beyond just titles—you safeguard your business from potential audits and penalties. At Axcet HR Solutions, we specialize in helping small and mid-sized businesses navigate complex wage and hour regulations. Our certified HR professionals can assist you in conducting accurate employee classifications and implementing compliant pay practices. Let us help you build a compliant, confident workplace. For more information about how to classify employees who hold occupations or work in industries cited in FLSA regulations, visit the DOL’s Wage and Hour Division website.", "author" : { "@id" : "https://blog.axcethr.com/author/jeanette-coleman#author", "@type" : "Person", "name" : "Jeanette Coleman, SPHR & SHRM-SCP", "url" : "https://blog.axcethr.com/author/jeanette-coleman" }, "dateCreated" : "2019-03-29", "dateModified" : "2025-05-15", "datePublished" : "2019-03-29", "description" : "Under the Fair Labor Standards Act (FLSA), “nonexempt” U.S. employees must be paid at least the federal minimum wage and one-and-one-half times their regular rate of pay for any hours they work over 40 in a workweek. 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