White Collar Exemptions under the FLSA

Author: Cynde Jackson Clarke
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. More than 130 million workers in more than 7 million workplaces are protected or “covered” by the Fair Labor Standards Act (FLSA), which is enforced by the Wage and Hour Division of the U.S. Department of Labor.
1. Tests for Executive Exemption
Primary duty is management of the enterprise or of a customarily recognized department or subdivision. Customarily and regularly directs the work of two or more other employees. Authority to hire or fire other employees or give recommendations to the hiring, firing, advancement, promotion or other change of job status of other employees.
2. Tests for administrative Exemption
Primary duty is the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers. Primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.
3. Tests for Professional Exemption
Primary duty is the performance of work requiring knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction. Primary duty is the performance of work requiring invention, imagination, originality, or talent in a recognized field of artistic or creative endeavor.
4. Other Exempt Occupations
Other exempt occupations include Insurance Claims Adjusters, Financial Services, Field of Science or Learning, Exempt Medical Professions, Recognized Field or Artistic or Creative Endeavor, Computer Related Occupations, Outside Sales/Retail Commissioned Sales.

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