Employers are not required to pay exempt employees for working more than 40 hours per week, but Section 541.604 of the Fair Labor Standards Act (FLSA) allows an employer to pay an exempt employee over and above his salary for overtime and still keep the exemption as long as the employee is paid a minimum of $455.00 each week. This figure cannot be reduced if the employee takes time off from work during the week.
Under Section 541.604, the employer can compensate the exempt employee with additional time-off, with a lump sum in cash, or payment can be time and a half or straight time pay for all hours that are worked "beyond the normal work week" as set forth by the employer, not the FLSA. Thus, the threshold for overtime for an exempt employee could be 50 hours as a normal week, and not 40, for example.
An exempt employee is one who is paid weekly, at least $250.00, and is classified as either an executive, professional, administrative worker or an outside sales person. Generally speaking, anyone who performs physical or manual labor cannot be an exempt employee under the law. An exempt employee is a salaried employee, as opposed to an hourly worker.
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