There are six (6) different categories to determine if a person should be salary. A good rule of thumb is if more than 2% of your employees (depending on your industry) are salary you may want to revisit job descriptions. It is always safer to have an employee as hourly if the position is questionable.
Must meet all of the criteria in each employee category.
Executive Employees
Compensated on a salary basis at a rate of not less than $455 per week; exclusive of board, lodging or other facilities.
Whose primary duty is management of the enterprise in which the employee is employed or of a customarily recognized department.
Who customarily and regularly directs the work of two or more other employees. AND
Who has the authority to hire or fire other employees or whose suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees are given particular weight.
Highly Compensated (may be exempt if)
Annual compensation of at least $100,000; AND
Regularly perform one or more of the exempt duties of executive, administrative, or professional.
Administrative Employees
Compensated on a salary basis at a rate of not less than $455 per week; exclusive of board, lodging or other facilities.
Whose primary duty is the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers;
Whose primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.
Professional Employees
Compensated on a salary basis at a rate of not less than $455 per week; exclusive of board, lodging or other facilities.
Whose primary duty is the performance of work:
Requiring knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction; or
Requiring invention, imagination, originality or talent in a recognized field of artistic or creative endeavor.
Examples would be an actor, nurse, teachers, etc.
Computer Employees
Compensated on a salary basis at a rate of not less than $455 per week; exclusive of board, lodging or other facilities.
exemption applies to any computer employee compensated on an hourly basis at a rate not less than $27.63 an hour.
The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software or system functional specifications.
The design, development, documentation, analysis, creation, testing or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications.
The design, documentation, testing, creation or modification of computer programs related to machine operating systems.
A combination of the aforementioned duties, the performance of which requires the same level of skills.
Outside Sales Employees
Whose primary duty is making sales as defined by the act or obtaining orders or contracts for services for the use of facilities for which a consideration will be paid by the client or customer; and
Who is customarily and regularly engaged away from the employer’s place or places of business while performing such primary duty.