Certain criteria must apply for an employer to properly classify employees as exempt under the administrative exemption, Roy P. Salins, Esq., explained in a BLR webinar titled "Exempt or Nonexempt? How To Avoid the Misclassification Mistakes You Simply Can't Afford To Make."
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- The employee must be paid a salary of not less than $455 per week ($23,660 annually).
- His or her primary duty must be office or non-manual work directly related to the management or general business operations of the company or its customers. This includes work in tax, finance, accounting, budgeting, auditing, insurance, quality control, purchasing, advertising, marketing, research, safety and health, personnel management, human resources and benefits, labor relations, public and governmental relations, network, Internet and database administration, and legal and regulatory compliance.
- The primary duty must be related to assisting with the running or servicing of the business, as distinguished from working on a manufacturing production line or selling a product in a retail or service establishment.
- The primary duty must include the exercise of discretion and independent judgment with respect to matters of significance. The work must involve evaluation of possible courses of conduct and decision-making after possibilities have been considered, and qualifying employees typically have the authority to make independent decisions free from immediate direction or supervision. However, recommendations on significant matters may suffice.
Roy P. Salins, Esq., is a senior associate Labor and Employment Practice Area of Vedder Price PC. Based out of the firm's New York office, Salins's practice includes all aspects of litigation in federal and state courts, administrative agencies, and in arbitrations before FINRA and the AAA. Salins also devotes a large part of his practice to counseling clients in all areas of labor and employment law, compliance with federal and state nondiscrimination and wage statutes, and issues relating to reduction in force, employee compensation, benefits, staffing, hiring, discipline and discharge. He can be contacted at rsalins@vedderprice.com.