What is the FLSA 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.
Employers can use the FLSA audit checklist to ensure employees are classified correctly. For a position to fall under the administrative exemption it must (1) pass the salary basis test by earning 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