Who is an administrative employee?
An administrative employee’s primary duty is office or non-manual work. Their job relates directly to the management or general business operations of the employer. Examples of administrative employees include human resources professionals and non-executive managers.
What must be met in order to be correctly qualified as an administrative employee?
In order to meet the administrative employee qualifications, the employee must be salaried at a pay rate of at least $455 per week. The primary duties of the employee are related to management or business operations, and the employee’s primary duties involve exercising discretion and independent judgment over important matters for the business. In Fowler v. OSP Prevention Grp. Inc., the court determined that production employees who perform the core function of the business are not transformed into administrative employees just because their work is essentially to what the company offers.
What does it mean to be an exempt employee?
An exempt employee does not receive employee benefits such as overtime pay and they are paid a salary rather than hourly pay. Exempt employees are not protected under FLSA. They are typically employees with more knowledge and experience.
What happens when someone is misclassified as an administrative employee?
When someone is misclassified as an exempt administrative employee, then they are not eligible for overtime and other employee benefits. The Federal Labor Standards Act protects employees from misclassification, and allows them to sue their employers for lost earnings. Additionally, this allows employees to change their classification. If a company has a broad policy of misclassifying employees, then this could lead to a costly class action for the employer.
