The overtime compensation rules do not apply in like manner to all employees. Some workers are completely exempt from the rules, while others are exempt or partially exempt from some of the rules. The most widely used and recognized exemptions from federal and state overtime requirements are the exemptions for “white collar” employees, such as executives, administrators and professionals.

• An executive employee is generally one whose primary duty is management, who supervises the work of at least two other employees on a regular basis, and who has the power to hire or fire, or who has a say as to the employment status of other employees.

• An administrative employee is generally one whose primary duty is office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers, including the exercise of discretion and independent judgment with respect to matters of significance. For example, employees working in a tax, labor relations, human resources or IT department can be exempt administrative employees, if they regularly make important business judgments.

• “Professional employee” refers generally to the traditional professions, including teaching, as opposed to the mechanical arts or skilled trades.

• While technically not exempted by the white collar exemptions, skilled computer employees and outside salespersons may also be classified as exempt employees.

Whether an employee is exempt is determined by the employee’s actual work activities, not by an employer’s characterization of those activities through a job title, job description or by the nature of the employer’s business.