• Kansas requires executive, administrative, and professional workers to spend at least 80 percent of their time performing exempt duties to qualify for overtime exemption.

Connecticut

Minimum salary: Connecticut requires a minimum salary of $475* for employees who must be paid on a salary basis, although there is a separate test for employees who earn at least $400* per week but less than $475* per week.

Duties test: Connecticut does not recognize an exemption for computer employees (although workers in that field might meet the professional tests), nor does the state recognize the “highly compensated employee” rule for those earning more than $107,432 per year.

If an employee earns less than the required state salary of $475* per week, an executive or administrative employee cannot spend more than 20 percent of working time (or 40 percent for retail or service employees) engaged in duties not directly and closely related to duties that meet the exemption.

In other words, these employees would have to spend at least 80 percent of their time engaged in exempt duties (or at least 60 percent for retail and service employees).

*These amounts may now be lower than required by federal regulations. Employers should adhere to whichever is higher.

Deductions: Connecticut does not allow unpaid disciplinary suspensions of less than one week.

Illinois

Duties test: Illinois does not recognize an exemption for computer employees (although workers in that field might meet the professional tests), nor does the state recognize the “highly compensated employee” rule for those earning more than $107,432 per year.

Also, Illinois has adopted a 2003 version of the federal regulations, before the “concurrent duties” rule was recognized for the executive exemption (29 CFR 541.106). This provision allows supervisors to engage in nonexempt tasks while simultaneously managing employees. The state may not recognize this rule.

Deductions: Although the state follows current federal regulations for matters including minimum required salary, it has adopted the 2003 version for other purposes, and therefore does not allow unpaid disciplinary suspensions of less than one week.

Iowa

Minimum salary: Iowa requires that exempt employees may not devote less than a specified percentage of their time performing exempt work. This minimum required percentage does not apply, however, if the employee is paid at least $500* per week.

Duties test: If an employee earns less than $500* per week, state law requires that executive, administrative, and professional employees cannot spend more than 20 percent of working time (or 40 percent for executive or administrative retail or service employees) engaged in duties not directly and closely related to duties that meet the exemption.

In other words, these employees would have to spend at least 80 percent of their time engaged in exempt duties (or at least 60 percent for retail and service employees). However, if the employee is paid more than $500* per week, the state uses the same definition for “primary duty” as the federal regulations.

In addition, an outside sales employee cannot devote more than 20 percent of working hours in duties other than those required for the exemption (which are otherwise identical to federal provisions).

Finally, Iowa does not reference (and therefore may not recognize) the “highly compensated employee” category for those earning more than $107,432 per year.

*This amount may now be lower than required by federal regulations. Employers should adhere to whichever is higher.

Deductions: Although the state follows current federal regulations for matters including the minimum required salary, it has adopted the 2003 version for other purposes, and therefore does not allow unpaid disciplinary suspensions of less than one week.

Kansas

Duties test: Kansas stipulates that executive, administrative, and professional employees cannot spend more than 20 percent of working time (or 40 percent for executive or administrative retail or service employees) engaged in duties not directly and closely related to duties that meet the exemption. In other words, these employees would have to spend at least 80 percent of their time engaged in exempt duties (or at least 60 percent for retail and service employees).

In addition, an outside sales employee cannot devote more than 20 percent of working hours in duties other than those required for the exemption (which are otherwise identical to the federal provisions).

Finally, Kansas does not reference (and therefore may not recognize) the “highly compensated employee” category for those earning more than $107,432 per year.

Maine

Minimum salary: Maine requires a minimum salary of either:

1. An annual amount equivalent to 3,000 hours at the state minimum wage, or
2. The amount required by federal regulations, whichever is higher.

At this time, Maine’s amount is higher.

Employers should keep in mind that if the state minimum wage increases, so will the minimum required salary for exempt employees. Even though minimum salary is based on a specified number of hours, the salary generally cannot be prorated for part-time exempt employees. The purpose of listing a number of hours is to ensure that the salary requirement will increase along with the state minimum wage.

Duties test: State law on the “primary duty” is similar to the federal rule but adds that the term means activities in which an employee spends “over 50 percent of his or her time.” While there are other considerations in evaluating primary duty, the state requires that at least one-half of working hours be spent in exempt duties.

In addition, Maine does not reference (and therefore may not recognize) the “highly compensated employee” category for those earning more than $107,432 per year.