Are there exceptions to the minimum salary requirements for white-collar exemptions under the FLSA regulations?

Editor's Note: On Sept. 8, 2023, the Department of Labor (DOL) issued a proposed rule increasing the Fair Labor Standards Act's (FLSA's) annual salary-level threshold to $55,068 from $35,568 for white-collar exemptions to overtime requirements. The department also is proposing automatic increases every three years to the overtime threshold. A public comment period will be open until Nov. 7, 2023.

Yes, there are several exceptions to the minimum salary requirement for 29 CFR 541 white-collar exemptions under the Fair Labor Standards Act (FLSA). Positions that are not subject to the minimum salary requirements include the following:

Business owners. Any employee who owns at least a bona fide 20-percent equity interest and who is actively engaged in the management of the business is not subject to the salary basis requirement. See Title 29 C.F.R. §541.101.

Computer professionals. Employees in certain computer-related occupations may be paid either the minimum required salary or on an hourly basis of at least $27.63 per hour. See Title 29 C.F.R. §541.400.

Teachers. Any employee with a primary duty of teaching, tutoring, instructing or lecturing in the activity of imparting knowledge and who is employed and engaged in this activity as a teacher in an educational establishment by which the employee is employed is not required to be paid on a salary basis. See Title 29 C.F.R. §541.303.

Practice of law or medicine. Any employee who is the holder of a valid license or certificate permitting the practice of law or medicine or any of their branches and who is actually engaged in the practice, and any employee who is the holder of the requisite academic degree for the general practice of medicine and is engaged in an internship or resident program pursuant to the practice of the profession is not subject to the salary basis requirement. See Title 29 C.F.R. §541.304.

Outside sales employees. Employees whose primary duty includes obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer, and who are customarily and regularly engaged away from the employer's place or places of business in performing such primary duty are not subject to the salary basis requirements. See Title 29 C.F.R. §541.500.

Employees in American Samoa. A lower minimum required salary is permitted for employees working in American Samoa for an employer other than the federal government. This lower salary is set at $380 per week. See Title 29 C.F.R. §541.600

Employees in Puerto Rico, the U.S. Virgin Islands, Guam, and the Commonwealth of the Northern Mariana Islands. A special salary level of $455 per week applies to employees working in these locations.

Motion picture producing industry. Employees in the motion picture producing industry do not have to be paid on a salary basis if the base rate of pay meets a minimum amount defined in the regulation. This weekly amount (or a proportionate amount based on the number of days worked) is generally higher than the standard minimum salary required for the exempt classification. See Title 29 C.F.R. §541.709

Administrative employees in educational establishments. Employees whose primary duty is performing administrative functions directly related to academic instruction or training in an educational establishment may be paid a salary that is at least equal to the entrance salary for teachers in the educational establishment by which administrative employees are employed. See Title 29 C.F.R. §541.204