Exempt employees & the administrative exemption
Federal law under the FLSA requires that certain employees be paid overtime wages and other benefits, while others are "exempt" from these requirements because of their specific job duties.
Employees employed as administrators are typically considered exempt. The administrative exemption is one of the most frequently misunderstood and misapplied by both employers and employees.
What is the federal administrative exemption?
Under federal law, for an employer to classify an employee as exempt under the administrative exemption, the employee must:
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Earn a salary of at least $455 a week;
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Perform office or non-manual work directly related to the management or business operations of the employer or the employer’s customers;
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Exercise discretion and independent judgment in the performance of their duties.
There are different exemption requirements for employees under federal and state employment laws. (Learn more about the California administrative exemption.)
Commonly misclassified employees under the administrative exemption
Some employees who are commonly misclassfied under the administrative exemption include:
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Retail store managers
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Assistant store managers
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Mortgage loan originators
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Insurance claims adjusters
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Pharmaceutical sales representatives
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Manufacturer's representatives that do marketing and merchandising at retail stores
Are you misclassified as exempt under the administrative exemption?
Think you are misclassifed as exempt? Free and confidential evaluations are available with our employment lawyers by calling (866) 981-4800 or by filling out the form to the right.
Why Girard Gibbs?
Girard Gibbs is a national litigation firm representing consumers, investors, employees, and small businesses in cases involving consumer protection, personal injury, securities, antitrust, and employment laws. The firm’s senior partners, Daniel Girard and Eric Gibbs, have been selected for inclusion in The Best Lawyers in America® 2012 and Northern California Super Lawyers, and have earned AV-Preeminent ratings from Martindale-Hubbell, recognizing them in the highest class of attorneys for professional ethics and legal skills.