1. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541

3. Salary not subject to deductions Guaranteed Salary Salary not subject to deductions Paid the same promised salary each pay day (can be paid semi-monthly or monthly) Salary must be $455.00 per week Initial and termination weeks can be prorated by day Partial day deductions are prohibited

4. Guaranteed salary continued: Full day deductions allowed only if: With Leave Plan: Employee voluntarily absent for a full day Sick, and has exhausted a sick or leave plan Without Leave Plan: If no leave plan in place, can not deduct for sickness If one hour is worked the whole week is payable

5. Executive Exemption Must meet all criteria Primary Duty must be management Supervises two full time employees Authority to hire and fire or recommend Customarily and regularly exercise discretionary powers Guaranteed salary of more than $455.00 per week

6. Primary duty must be management: Hired to function as the manager More than 50% of time spent supervising Recognized as the supervisor Job title is not significant What do they actually do?

7. Supervise two or more employees: Two full-time employees or part time equivalent Must be 80 hours of labor Can be three or four part as long as it is 80 hours Must be direct supervision

8. Authority to hire and fire or recommend: Must have exercised that authority Must be part of the evaluation process Must have ability to set rates of pay Some weight has to be given to their recommendations

9. Customarily and regularly exercise discretionary powers: Make independent decisions Set schedules Call for service work if there is a breakdown Answer the phone Call for help Ability to fix what is broken Not very well defined

10. Administrative Exemption Criteria for determination: Office or non-manual work directly related to management policies or general business operations;OR Academic instruction or training carried out in the administration of a school system or educational establishment;AND

11. Criteria continued: Customarily exercise discretion and use independent judgement Assist a proprietor or bona fide executive Perform work only under general supervision along specialized or technical lines that require special training Execute special assignments Spend no more than 20% of time (40% in retail or service establishment) on non-exempt work Must be paid on a salary or fee basis of $455.00 per week

12. Who are these employees? Thinkers and planners Advisory specialists, buyers, purchasing agents Wage rate analysts Safety directors Human Resource managers People that make decisions that affect profit and loss

13. Who are they in schools? Academic administrative employees Principals and heads of departments

14. Who are they NOT!!! Bank tellers, bookkeepers Secretaries Shipping and receiving clerks Accounts receivable and payable staff Payroll staff Building management and maintenance

15. Key Issues Perform no production work of any kind They are not the people who do not fit the other exemptions

16. Professional Exemptions Learned Artistic Teaching

17. Learned Professions Knowledge of an advanced type, four year degree or its equivalency Field of science of learning Examples – attorneys, doctors, registered nurses, architects, and engineers Technologists not technicians

18. Artistic Professions Creative work requiring imagination or invention Talent, entertainment industry personnel, radio and television talents, actors and musicians

19. Teaching Professionals Certified or recognized Educational institution or school system

20. Other criteria Exercise discretion and judgement Work is predominantly intellectual and varied – as distinguishable from routine or mechanical Not more than 20% of time is spent on activities not essentially a part of the professional duties Salary or fee of $455.00 per week

21. Exemptions from the salary test: Holder of a valid license in the practice of law or medicine and engaged in the practice Medical interns or residents Teachers in schools or education institutions

22. “Salary test” waived Limited to highly skilled computer analysts, programmers, software engineers and specialists, etc. If employee is compensated at 6 ½ times the minimum wage in effect at the time of the change $4.25 x’s 6 ½ = $27.63 per hour

23. For further information: Contact info:Illinois Dept of Labor Fair Labor Standards 312-793-2804 Website: www.state.il.us/agency/idol/www.state.il.us/agency/idol/