The FLSA White Collar Exemptions (Executive, Professional, Administrative)


Hello everyone. Paul Simon here, with The Law Firm of Simon Paschal. On a previous video, we talked about, exempt versus nonexempt, as it relates to the overtime laws. But, today what we’re going to talk about is the white color exemptions. Now these are three exemptions. Basically, the most common exemptions that you’ll find out there in the employment world. So, those three exemptions, are the executive, the administrative, and the professional. And, we’re just going to kind of highlight the main requirements of each of these exemptions. But, understand that there’s a lot of nuances and intricacies. So, you really should consult a professional, before you make the determination of whether or not one of your employees falls under these exemptions. So, let’s go real quick here, for the executive exemption requirements. The first one, and this is going to be common through all three of these exemptions, but it’s a salary requirement.

That salary, at least as we stand today in January of 2016, is $455 per week. That is supposed to increase. Right now, it’s set to increase in August, or September, of 2016, but, just keep in mind that, that salary exemption may increase. The next requirement in the executive exemption, is the primary duty. And, what the primary duty of an executive is, is to manage the business, or a subdivision department. And, the management requires that you must supervise two or more full time employees. And, the last one is that, you have the discretion to hire and fire. Again, we can spend hours on probably each of these, but, we just want to kind of give you guys the main things to think about as it relates to the executive exemption.

The next exemption we have, is the administrative exemption. And, you’ll see here, that we have the same salary requirement, currently a $455 per week. Where the administrative differs, from the executive, is your primary duty. The primary duty for the administrative exemption… The duty is, office, or non-manual work. And so, you have to think of this as more of your, again, it’s a white collar work. So, it’s someone who’s inside doing marketing, doing some sort of accounting work. That sort of stuff, often will fall into the administrative. But, we have to understand here, is why it’s not necessarily going to be your secretary, or someone who’s just pushing papers, or just doing data entry, is your third point here. And that’s, the discretion. The person must exercise discretion, and independent judgment. So again, your secretary who’s not necessarily tasked with something where they have to exercise discretion, probably does not meet the administrative exemption. All right.

Let’s come over here to the last one here that we’re going to discuss, and that is, our professional exemption. Again, same salary requirement, $455 per week. Now, the primary duty here of a professional, is going to be someone who has advanced knowledge, and consistently exercises discretion, independent judgment. Professional, I think, it’s a very easy one to think about. It means, it’s someone who has kind of a professional degree. And, you’ll see on three and four where it kind of here, talks about the advanced knowledge that the primary duty requires, is in the field of science or learning. So again, English, engineering, those types of things, would fall under this advanced knowledge. And then, the prolonged course of instruction, basically means that they must have a college degree, generally a bachelor’s degree, in order to meet this professional exemption. So, again, that’s real quick overview, but we have the three. Just keep in mind, executive, administrative, and professional, are your white collar exemptions. And, we’ll dive into each of the specifics in later videos. So, thank you for turning in.

 

Comments are closed.