The Fair Labor Standards Act provides three major exemptions in terms of overtime pay that permits employers to not give certain employees this additional pay for work performed beyond their regular hours. In particular, managerial staff and administrators are generally considered a part of the administrative exemption, which covers individuals who are usually removed from the actual production of a good or completion of a service. Due to a combination of factors, these workers are not given overtime pay.
When working through whether a person qualifies for an administrative exemption or not, there are some troubling issues that can create confusion. The primary distinction of this specific overtime exemption is the worker’s job description, which must involve completing administrative, not manufacturing, tasks.
Administrative tasks are mainly considered under a few guidelines. One of the most common ways to know whether or not an employee is considered to be working as an administrative worker is to recognize how they contribute to the company or institution. If the person is involved in internal matters and does not deal with the product or service directly, that person may be fulfilling an administrative role.
Additionally, if a person is allowed or required to use their own discretion on projects, they may be considered an administrator. While this normally applies to managers, it may also apply to those workers who do not need larger departments to complete their job, generally working on their own. Usually, if a person is permitted to make policy changes within a company or institution, they are considered to be available for this exemption.
Finally, there are pay standards and special rules for those in academic fields that must be met where applicable. To learn more about this overtime exemption and how the Fair Labor Standards Act applies to managerial positions, contact an employment attorney.