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Top 5 Questions to Ask Yourself about Administrative Exemption

Contrary to many employers' beliefs, the Administrative Exemption is not as broad as it seems.

Under the Fair Labor Standards Act, the Administrative Exemption allows employers to make certain employees exempt from overtime, if they meet specific criteria. This means that an employee would not receive overtime pay for the hours that he or she worked over 40 in the following instances:

1. The employee's primary duty must be directly related to the operations of the company.

2. The employee must make at least $455 per week, which is approximately $11.36 per hour for a normal 40 hour week.

and

3. The employee must exercise his or her own independent thought and discretion while performing the job.

The FLSA outlines those jobs that often fall under the exemption as ones in common fields, such as marketing, research, finance, safety and health, advertising, or those having to do with the budget or taxes. But it is important for employees to realize that just because they work in one of these fields does not mean that they automatically fall under the exemption and are not entitled to overtime.

If your employer is telling you that you are not receiving overtime pay because of the Administrative Exemption, ask yourself the following questions:

1. How much money am I making every week?

2. Does my job title match the tasks that I perform each day?

3. How do my tasks affect the company and the other people working for it?

4. What authority do I have to make decisions?

5. Am I told what to do or can I use my own discretion?

If your answers do not match up with the criteria for the Administrative Exemption, contact the Houston overtime wage lawyers at Kennedy Hodges, LLP immediately for a free case evaluation by filling out this online form. We also can provide you with a free copy of Ten Biggest Mistakes That Can Hurt Your Wage and Overtime Claim if you call 888.449.2068.