Human Resource Blog

FLSA Exemptions in Oregon

	Compensation
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Does the FLSA cover all employees in Oregon or aren’t there exemptions?

Yes, there are exemptions to coverage under the Fair Labor Standards Act. The Act is actually in place for states across the country, including the state of Oregon. It was put into place in order to ensure that all employees could be compensated fairly for the work that they perform for the employer.

According to the FLSA, employees should be paid at least the minimum wage for each hour that they work. In addition to establishing the minimum wage requirement, the Act also establishes overtime pay requirements. When an employee works more than the standard 40-hour work week, the employer should compensate the employee at a rate of time and a half of the normal rate of pay.

Employees that are exempt do not need to be compensated based on the minimum wage or on overtime pay rates. Instead, they can be compensated through other means, such as a salary or commissions. Many types of employees may qualify for exempt status, including executives, administrators, contractors, and outside sales people,

In order for an executive to qualify for exempt status, he or she needs to:

·         Be paid at least $455 per week

·         Be in charge of  the enterprise or of a division within the enterprise in a role where he or she can make bona fide decisions related to the company and its direction or growth

·         Oversee at least two other employees within his or her division

·         Be in control of making critical employment-related decisions about an employee, such as decisions about hiring, terminating, training, compensation, and otherwise.

In order for an administrator to be exempt, he or she needs to:

·         Be compensated at least $455 per week

·         Be in control of making decisions that are considered to be about matters of significance to his or her role within the company. CB