Administrative Exemption

The administrative exemption under the Fair Labor Standards Act (FLSA) is one of the classifications of jobs that are excluded from minimum wage, overtime regulations and other rights and protections given to nonexempt employees.

Misclassifying employees as exempt is a common FLSA violation. Incorrectly classifying an employee as exempt when they are nonexempt can result in back overtime, fines, and damages. Employers must adhere to both federal and state laws when classifying an employee as exempt or nonexempt.

For a position to fall under the administrative exemption it must:

1. Earn a salary of at least $23,600 per year;
2. Perform job duties are office or non-manual work directly related to management and business operations of the employer or employer’s customers; and
3. The employee’s primary duty must exercise judgment and independent judgment with respect to matters of significance

EEO-1 reporting requirements impact employers of exempt and non-exempt employees. Stay up to date here.

Never scour the internet again for critical HR information. Paycor’s Resource Center offers a library of human resource articles, checklists, guides and other tools to ensure you’re using the most up-to-date and compliant materials.