Exemption for Employees in Computer-Related Occupations Under the Fair Labor Standards Act (FLSA)
Weekly cavnessHR Newsletter
Last week on our weekly newsletter, we talked about the Learned Professional to the salary compensation for overtime rules. As a reminder, I listed the exemptions to paying someone overtime below.
Executive Exemption
Administrative Exemption
Professional Exemption
Computer Exemption
Outside Sales Exemption
Highly Compensated Exemption
This week we're going to talk about the learned Computer Related exemption for overtime.
To qualify for the computer employee exemption, the following tests must be met:
The employee must be compensated either on a salary or fee basis at a rate not less than $684 per week or, if compensated on an hourly basis, at a rate not less than $27.63 an hour;
The employee must be employed as a computer systems analyst, computer programmer, software engineer or other similarly skilled worker in the computer field performing the duties described below;
The employee’s primary duty must consist of:
1. The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software or system functional specifications;
2. 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;
3. The design, documentation, testing, creation or modification of computer programs related to machine operating systems; or
4. A combination of the aforementioned duties, the performance of which requires the same level of skills. The computer employee exemption does not include employees engaged in the manufacture or repair of computer hardware and related equipment.
Employees whose work is highly dependent upon, or facilitated by, the use of computers and computer software programs (e.g., engineers, drafters and others skilled in computer-aided design software), but who are not primarily engaged in computer systems analysis and programming or other similarly skilled computer-related occupations identified in the primary duties test described above, are also not exempt under the computer employee exemption.
The computer employee exemption does not include employees engaged in the manufacture or repair of computer hardware and related equipment. Employees whose work is highly dependent upon, or facilitated by, the use of computers and computer software programs. (e.g., engineers, drafters and others skilled in computer-aided design software) But who are not primarily engaged in computer systems analysis and programming or other similarly skilled computer-related occupations identified in the primary duties test described above, are also not exempt under the computer employee exemption.
So just because someone has the word computer in their job description does not make them exempt using the computer exemption So I know that's pretty cut and dry and this can get pretty complicated. So reach out to us with any specific questions
At cavnessHR, we deliver HR to companies with 49 or fewer people by automating the HR process while maintaining the human touch. We want to bring big business HR to small business.
Any questions about this or anything HR related, reach out to me at jasoncavness@cavnessHRcom. or reach out to us on social media at cavnesHR across most social media platforms.
Thanks for your time today and remember to be great every day.
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