Protecting Your Paycheck: Administrative Exemption Not So Broad

If you work in an office setting, you may have been told that you are not eligible for overtime pay due to the Administrative Exemption under the Fair Labor Standards Act.

And at first glance, it may seem like there are many jobs or positions that are exempt from overtime under this FLSA rule. But the Houston overtime lawyers at Kennedy Hodges want readers to know that the Administrative Exemption is not as broad as it appears.

Employers may have an easy time making employees believe that this exemption applies to them because, according to the FLSA, jobs that aren't entitled to overtime include those in the following fields:

• Marketing

• Taxes

• Research

• Finance

• Budget

• Advertising

• Safety and Health

Many people believe that their jobs could easily fall under one of these categories. But just because an employee works in one of these fields does not mean that his or her actual position or the job that he or she performs makes the employee exempt from overtime.

In order for an employer to deem an employee exempt from overtime pay under the FLSA's Administrative Exemption, all of the following must be true:

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.

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

With all of this in mind, you need to consider your individual situation. For example, if you are an employee in one of the above-mentioned fields, but you don't have the authority to make decisions using your own discretion, then you could still be entitled to overtime pay of one and a half times your hourly rate for the hours worked over 40 in one week.

Or perhaps in your job, you don't spend more than 50% of the time performing tasks that are directly related to the operations of the company. Making phone calls to confirm appointments or pouring coffee for clients does not affect whether or not a company can keep operating, even though those tasks are necessary and important.

False exemptions have the potential to mean that an employee could miss out on thousands of dollars from his or her paycheck over the course of a career. Don't let this happen to you. Contact the Houston overtime wage lawyers at Kennedy Hodges, LLP for a free case evaluation. 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.

The Texas overtime lawyers at Kennedy Hodges represent workers nationwide and across Texas in:
Houston, Dallas, Austin, San Antonio, Fort Worth, Pasadena, Laredo, Sugar Land, Lubbock, Illinios, New York, Massachusetts, Los Angeles, Chicago, Philadelphia, Phoenix, San Diego, San Jose, Jacksonville, Indianapolis, San Francisco, Columbus, Charlotte, Detroit, and more.