A classification of employee under the Fair Labor Standards Act ( www.practicallaw.com/5-501-9884) (FLSA) (and some state law equivalents) that is exempt ( www.practicallaw.com/2-501-9885) from minimum wage ( www.practicallaw.com/9-506-9527) and overtime pay ( www.practicallaw.com/2-507-1821) requirements (29 C.F.R. § 541.200(a) (2011)).
To qualify for the administrative exemption under the FLSA, each employee must satisfy the following:
The employee must be compensated:
on a salary or fee basis; and
at a rate at least equal to the minimum required threshold (currently $455 per week).
The employee's primary duty:
must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer's customers; and
includes the exercise of discretion and independent judgment on significant matters.
For more information on the exemption requirements for administrative employees under the FLSA, see FLSA White Collar Exemptions Checklist: Administrative Exemption Requirements ( www.practicallaw.com/5-507-2555) .
State law may provide for the same or a similar exemption, or may prohibit exemption of administrative employees. For more information on state wage and hour laws, see Wage and Hour Laws: State Q&A Tool ( www.practicallaw.com/3-505-9593) .