“I am hiring an Executive Assistant and most of the applicants want to be salaried instead of hourly. If they want to be exempt, does that make it okay?”
My HR Survival Tip
Whether or not an employee is exempt or non-exempt isn’t your choice or the employee’s choice. Both the state and federal governments assume everyone is hourly unless you can prove the employee meets the legal qualifications for being exempt.
As a refresher, exempt employees are exempt from overtime pay and are usually paid a salary. Non-exempt employees are not exempt from receiving overtime and are usually paid by the hour for time worked.
There are many positions that both employers and employees believe are exempt but theydon’t meet the legal qualifications. There are times when an Executive Assistant is an exempt position… this is when the person is truly the second in command of an organization and can make major business decisions on his/her own.
When the employee is working within a “box” you’ve created, it’s less likely they will be making decisions or policies on their own at a high level. Do you understand the level of responsibility and knowledge between the following positions:
- Managers vs. Assistant Managers
- Accountants vs. Bookkeepers
- Chefs vs. Cooks
- Outside Sales Reps vs. Inside Sales Reps
The first position listed is much more likely to be an exempt position in comparison to the second one listed. However, don’t assume any position is automatically exempt based on the title.
The first test is meeting the minimum salary required (currently $41,600, regardless of how few or how many hours are worked). The second test is based on duties and responsibilities and, in some cases, skill level. Unfortunately, the government has given us fairly subjective guidelines on this second test for some of the exemptions, making it harder to ensure you have made the right decision.
Misclassification as an exempt position can be a costly issue. Take the time to ensure the position truly qualifies for the exemption, regardless of what title you’ve used.
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