While looking into overtime exemption requirements, I came across an article that seems to indicate software developers required to work over 40 hours/week either need to be paid overtime as an hourly employee or be paid a minimum salary of $90k.

In 2018, computer professionals may be exempt from overtime if they are paid at least $43.58 per hour or an annual salary of at least $90,790.07. The minimum compensation required to satisfy the exemption is recomputed every year to account for changes in the cost of living.

I'm confident the duties requirement is met as it is mostly autonomous decision making and technical in nature, but I'm confused about how I was being paid (which was substantially under the minimum salary described above).

I was paid bi-weekly as a non-hourly/salaried employee (hours are logged but are only considered for reviews). When averaging the annual hourly quotas over the the course of 52 weeks, hours worked are under or exactly 40 hours a week. This includes approved time off and holiday periods where the office is closed (~3 weeks a year).

In order to meet the annual expectations this requires working >40 hours a week when the office is open.

Was my employer required to pay the minimum salary under these conditions regardless of paid holidays & vacation? Is this common practice? Is there something I'm misunderstanding about the exemption criteria?

Source: https://wrklyrs.com/CompProf

  • When working out hours per week, you look at the actual number, not the theoretical requirement or whatever quota is in the policy. – Nij Jan 24 at 9:56

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