FLSA Overtime Law – Exempt Administrative Employees

By Thomas McKinney

Many employer label employees as exempt from overtime based on a misinterpretation of the Fair Labor Standards Act’s exemption for administrative employees.  The definition of an exempt administrative job is (a) office or nonmanual work, which is (b) directly related to management or general business operations of the employer or the employer’s customers, and (c) a primary component of which involves the exercise of independent judgment and discretion about (d) matters of significance.

The exemption for administrative employees was designed for high-level employees who “keep the business running.” Clerical employees who perform office or nonmanual support work (cashiers, secretaries, etc.) are not administratively exempt. In order for the administrative exemption to apply, the work should involve the exercise of discretion and judgment and the employee must have the authority to make independent decisions on matters which affect the business as a whole or a significant part of the business.

Please contact our Overtime Lawyers for a free calculation of the overtime pay you may be owed or if you have any questions regarding your right to overtime pay.

Dated: April 28, 2010

About the Author
Tom McKinney is an experienced NJ Employment Lawyer in all major areas of labor and employment law, including discrimination, harassment, overtime violations, wage and hour claims, sexual harassment, wrongful discharge, Title VII, ADA, ADEA, FMLA, LAD, FLSA, and all other employment law claims. Tom is admitted to practice in the States of New Jersey and New York, United States District Court for the Eastern District of New York, Southern District of New York, District of New Jersey, and United States Court of Appeals for the Third Circuit. Prior to forming the firm, Tom practiced at Gibbons P.C. in Newark, NJ. If you have any questions regarding this article, contact Tom here today.