The Administrative Exemption

The Fair Labor Standards Act (FLSA) exempts "administrative" employees from receiving overtime pay. That does not mean they are not allowed to receive overtime pay, it just means the employer is not required to pay overtime.

The Code of Federal Regulations provides a list of requirements for administrative employees. Of course, all of these requirements are further defined by other regulations and case law. If you are trying to figure out whether you are exempt from overtime, this is a great place to start, but you should seek the advice of a wage and hour attorney that is familiar with this area of law. This is especially true of the administrative exemption where the regulations provide only limited clarity and guidance.

From 29 C.F.R. 541.200:

(a) The term "employee employed in a bona fide administrative capacity" in section 13(a)(1) of the Act shall mean any employee:

   (1) Compensated on a salary basis of not less than $455 per week, exclusive of board, lodging, or other facilities;

   (2) Whose primary duty is 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) Whose primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.

If you believe you may have been misclassified as overtime exempt or otherwise denied overtime wages, please call my office at (614) 939-9022.