If you are classified as “exempt” for wage and hour purposes, then they can dock your pay for taking extra vacation and they do not have to pay you for overtime. Most managers are “exempt,”
Following are examples of exemptions which are illustrative, but not all-inclusive. These examples do not define the conditions for each exemption. (This is excerpted from “Handy Reference Guide to the Fair Labor Standards Act” U.S. Department of Labor
)
Exemptions from Both Minimum Wage and Overtime Pay
(1) Executive, administrative, and professional employees (including teachers and academic administrative personnel in elementary and secondary schools), outside sales employees, and employees in certain computer-related occupations (as defined in Department of Labor
regulations);
(2) Employees of certain seasonal amusement or recreational establishments, employees of certain small newspapers, seamen employed on foreign vessels, employees engaged in fishing operations, and employees engaged in newspaper delivery;
(3) Farm workers employed by anyone who used no more than 500 "man-days" of farm labor in any calendar quarter of the preceding calendar year;
(4) Casual babysitters and persons employed as companions to the elderly or infirm.
Exemptions from Overtime Pay Only
(1) Certain commissioned employees of retail or service establishments; auto, truck, trailer, farm implement, boat, or aircraft salesworkers, or parts-clerks and mechanics servicing autos, trucks, or farm implements, who are employed by nonmanufacturing establishments primarily engaged in selling these items to ultimate purchasers;
(2) Employees of railroads and air carriers, taxi drivers, certain employees of motor carriers, seamen on American vessels, and local delivery employees paid on approved trip rate plans;
(3) Announcers, news editors, and chief engineers of certain nonmetropolitan broadcasting stations;
(4) Domestic service workers living in the employer's residence;
(5) Employees of motion picture theaters; and
(6) Farmworkers.
Partial Exemptions from Overtime Pay
(1) Partial overtime pay exemptions apply to employees engaged in certain operations on agricultural commodities and to employees of certain bulk petroleum distributors.
(2) Hospitals and residential care establishments may adopt, by agreement with their employees, a 14-day work period instead of the usual 7-day workweek, if the employees are paid at least time and one-half their regular rates for hours worked over 8 in a day or 80 in a 14-day work period, whichever is the greater number of overtime hours.
(3) Employees who lack a high school diploma, or who have not attained the educational level of the 8th grade, can be required to spend up to 10 hours in a workweek engaged in remedial reading or training in other basic skills without receiving time and one-half overtime pay for these hours. However, the employees must receive their normal wages for hours spent in such training and the training must not be job specific.
