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Mar 1
Administrative Employees

The following is not meant to be legal advice. 

 

The exemption for administrative employees under the FLSA includes any employee who (1) has the primary duty of performing office or non-manual work directly related to the management or general business operations of the employer or its customers; (2) is paid at least $455 per week on a salary or fee basis; and (3) whose primary duty includes the “exercise of discretion and independent judgment” with respect to matters of significance.  The research for this is found at 29 C.F.R. § 541.200. 

Under 29 C.F.R. § 541.203, the term “exercise of discretion and independent judgment” means that the employee has the authority to make independent choices or recommend courses of action, as opposed to just applying well-established techniques, procedures or standards.  For example, a facilities clerk who must act within closely prescribed limits would not qualify for this exemption, but a purchasing manager with the authority to bind the company on significant purchases would qualify.  An ordinary administrative assistant would not be exempt, but an assistant to an executive or business owner who has been delegated authority in significant matters would be exempt. 


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