FLSA Overtime Exemptions: Administrative Exemption

Administrative Exempt

We previously discussed the Fair Labor Standards Act’s (“FLSA”) requirement for overtime compensation and the potential applicability of multiple exemptions. One of the exemptions is the administrative exemption. Neither job title nor payment of wages via a set salary are sufficient to qualify an employee for the administrative exemption. Rather, a detailed factual analysis must be conducted, which includes, but it is not limited to, consideration of the following factors: 1.) the amount of the employee’s weekly wages; 2.) whether the primary duty of the employee includes the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers; and 3.) whether the employee regularly uses discretion and independent judgement regarding matters of significance. The analysis focuses on the services actually performed by the employee, as opposed to just the employee’s title or job description. To determine whether the administrative exemption applies to any of your employees, call the Business Law Group today and speak to an attorney.

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