Holly is the HR Professional for her organization and she's examining the type of exemptions for computer employees. What is the minimum rate that the computer employee must earn to be considered exempt?

Under the Fair Labor Standards Act (FLSA), certain computer employees may be classified as exempt from overtime pay. To qualify for this exemption, they must meet specific duties tests. For compensation, they can be paid on a salary basis of at least $684 per week or, alternatively, on an hourly basis. If paid hourly, the rate must be at least $27.63 per hour, as per the regulations effective January 1, 2020. This specific hourly rate is a unique provision for the computer employee exemption.

B. $17.03 per hour is not a recognized minimum rate for any FLSA exemption category.
C. $45.33 per hour is incorrect. This figure may relate to the "highly compensated employee" exemption when annualized, but it is not the computer employee hourly rate.
D. $31.23 per hour is not a recognized minimum rate for any FLSA exemption category.

1. U.S. Department of Labor, Wage and Hour Division. (2019, September). Fact Sheet #17E: Exemption for Computer-Related Occupations Under the Fair Labor Standards Act (FLSA). Retrieved from https://www.dol.gov/agencies/whd/fact-sheets/17e-overtime-computer. (This official document explicitly states, "The employee must be compensated... on an hourly basis at a rate not less than $27.63 an hour.").

2. Code of Federal Regulations. 29 C.F.R. § 541.400 - General rule for computer employees. (This section of the federal code outlines the specific requirements for the computer employee exemption, including the compensation levels).

3. Cornell Law School, Legal Information Institute. (n.d.). 29 CFR § 541.400 - General rule for computer employees. Retrieved from https://www.law.cornell.edu/cfr/text/29/541.400. (Provides the text of the regulation, which includes the compensation requirements).