Human Resource Blog

FLSA Exemptions in New Jersey

	Benefits
Total Compensation Summary Performance Improvement Plan Performance Appraisal and Review Employee Payroll Status/Change Form Employee Change Form

	Compensation
Employee Payroll Action Form W-4 Employee Withholding Allowance Cert. Employee Payroll Status/Change Form Direct Deposit Form Total Compensation Summary

Which of our employees are exempt from FLSA coverage in New Jersey?

Many types of employees will qualify for exemption from the Fair Labor Standards Act in the state of New Jersey. The FLSA is a federal Act, so it could potentially apply to employees in all states, not just New Jersey.

The FLSA is in place in order to ensure that employees are compensated fairly for the work that they perform for their employers. Thus, the Act establishes the minimum wage, which is a base rate of pay that employers should use to compensate their employees. The Act also establishes overtime pay, which should be paid to employees that work more than the standard 40 hour work week. Overtime pay should be set at a rate of time and a half of the employee’s normal rate of pay.

Employees that may be exempt from coverage could be executives, administrators, contractors, and outside sales people. When an employee is exempt, his or her pay is not based on the minimum wage or overtime. Rather, the pay may be based on a salary or commissions.

In order for an executive to qualify for exempt status, the executive needs to meet at least the following conditions:

·         He or she should be paid at least $455 per week

·         He or she needs to directly oversee the entire enterprise or a division within the enterprise

·         The executive needs to oversee at least two employees.

·         The individual also needs to be in charge of making employment-related decisions, such as decisions about hiring, promoting, compensating, terminating, and otherwise.

In order for an administrator to receive exempt status, the administrator needs to:

·         Be paid at least $455 per week

·         Be in direct control of his or her area of work and be in a position to make significant decisions that relate to his or her position. CB