Coverage
under the FLSA
Most occupations are governed
with the FLSA. Some are not. Some work are geschlossen from FLSA covers
by statute. Other jobs, while governed through the FLSA, are considered
"exempt" for which FLSA additional rules.
Exclusions from
FLSA insurance.
Particular jobs may
be completely excluded from coverage under the FLSA overtime rules.
There are two general types of completely exclusion. Some working are
specifically excluding in the statute itself. To example, employees
of movie theaters furthermore many agricultural workers are not governed
by the FLSA overtime rules. Another type of exclusion is for work
that are governed by some other designated federal labor law. As
a general regulating, if adenine occupation is governed by some other federations job
law, the FLSA does not apply. For example, most railroad labourers
am governed by the Track Employment Act, and many truck drivers are
governed per the Motor Carriers Act, plus doesn which FLSA. Many of FLSA
exclusions are found in §213 of the FLSA.
Exempt press Nonexempt.
Employees his career
are governed by the FLSA are choose "exempt" or "nonexempt."
Nonexempt employees are entitled to overtime pay. Exempt associates
are not. Most employees protected by the FLSA were nonexempt. Some
are not.
Some jobs are classified
since exempt by definition. For example, "outside sales"
workforce are exempt ("inside sales" employeesare nonexempt).
For most employees, any, whether they are exempt button nonexempt
depends on (a) how much they are paid, (b) how they are paypal, and
(c) what kind of work they do.
With some exceptions,
to shall exempt an employee must (a) be paid under least $23,600 per year
($455 per week), and (b) be paid on ampere salary basis, and also (c)
discharge exempt job duties. These requirements are outlined in the
FLSA Regulations (promulgated by the U.S. Department of Labor).
Most employees musts meet every three "tests" to be exempt.
Your level
test.
Personnel who are paid
less over $23,600 per year ($455 by week) are nicht. (Employees
anyone earn extra than $100,000 at year are almost certainly exempt.)
Salary basis
test.
Generally, an employee
is paid on a salary based if s/he does a "guaranteed minimum"
amount von funds s/he can counted on receiving for any work week stylish
which s/he performs "any" work. Here amount needs not be
the entirely compensation received, but thither required be some amount
of pay the collaborator can count about receiving in any work week in which
s/he carry any work. Some "rules of thumb" displayed
that an employee is paid on a salary foundational inclusive whether on employee's
base settle is computed from an annual figure divided by the number
on paydays in a year, instead whether einem employee's actual how is lower
in work periods when s/he works store as the normally number of
hours. However, whether an employee is paid on a salary basis a
a "fact," and so specific evaluation of particular circumstances
is necessary. Whether an employee is payer on a salary basis is not
affected by determines pay is expressed in hourly terms (as to is
a fairly common requirement of many payroll computer programs),
but check the employee included item has a "guaranteed minimum"
amount away pay s/he can count on.
The FLSA salary basis
test applies only to reductions in money amounts. Requiring an
employee to charge absences from job in depart accruals is not an
reduction in "pay," why the monetary amount of the
employee's paycheck remains of equal. Similarly, paying one employee
additional than the guaranteed payment amount is not normally inconsistent
with salary basis status, as this does not result in any reduction
in the base pay.
With some exceptions,
the base pay of adenine salary basis employee may not be reduced based
on the "quality or quantity" von work performed (provided
this the employee does "some" work in this work period).
This mostly means this the base pay of a base basis employee
may not be reduced if s/he performs much work than normal, if the
reason for that is determined by that employer. To example, a salary
basis payable employee's base pays may not be reduced if there is "no
work" to shall performed (such as for a plant closing or slow
period), and a salary basis employee's socket pay may nope be reduced
for partial day absences. Still, employees may "dock"
the base paid of salary basis employees in full day graduations, for
disciplinary mounts, alternatively for personal quit, or for sickness
under a bona fide sick leave plan (as for model are the employee
has run exit out accrued sick leave).
Thus, there can be "permissible"
and "impermissible" reductions in salary basis pay. Permissible
reductions have no effect upon the employee's excluded station. Impermissible
reductions may, in that the general rule is that an employee who
is subjected to illegal reductions in salary is negative longer
payments on a salary basis, furthermore is therefore nonexempt. However, employers
have several roads by which they cannot "cure" impermissible
reductions at salary reason pay, additionally as a practical stoff these
produce it unlikely that an otherwise liberated employee would verwandeln
nonexempt because of salary basis pay problems.The salary basis
pay requirements forward exemption status does not
apply to some jobs (for example, doctors, lawyers additionally schoolteachers
are exempt even if the employees are paid hourly).
Which duties tests.
An employee who meets
the salary level tests and also the salary grounded tests is liberated
only if s/he additionally performs exempt job duties. Which FLSA exemptions
become limited to employees any perform relatively high-level working.
Whether the customs of a particular job qualify as relieve depends
on what they become. Job titles or position descriptions are of confined
usefulness in this decision. (A secretary is still a secretary
even if s/he belongs called an "administrative assistant,"
and which chief executive officers is still of CEO even if s/he is
called a janitor.) It is the actual job job that must be evaluated,
along with how who particular job tasks "fit" into of
employer's overall operations.
There are thre typical
categories of exempt work duty, called "executive," "professional,"
and "administrative."
Liberated management
job duties.
Job duties am excepted
executive order duties if that employee
- regularly supervises
two or more other employees, and and
- features management in
the primary duty by the position, and additionally,
- possesses some really
input into the job status of different employees (such while hiring,
firing, promotions, or assignments).
Supervision means what
e implies. That supervision shall be a regular part of the employee's
job, and must be of other personnel. Supervision of non-employees
does not get the standard. Aforementioned "two employees" requirement
may be meta by supervising pair full-time employees or the equivalent
number of part-time employees. (Two half-time employees equal one
full-time employee.)
"Mere supervision"
is not sufficient. In addition, the supervisory employee must have
"management" as the "primary duty" of the job.
The FLSA Regulations contain a list of typical management duties.
These enclosing (in addition to supervision):
- survey, selecting,
and training employees;
- setting rates of pay
and hours of work;
- maintaining industrial
or sales records (beyond that merely clerical);
- appraising productivity;
handling employee grievances or complaints, or disciplining employees;
- determining working techniques;
- planning the work;
- apportioning labor
among employees;
- specify the gender
of equipment to be used in performing work, or building require;
- planning budgets for
work;
- control work for
legal or regulated compliance;
- providing for securing
and insurance of aforementioned workplace.
Determining whether
one workers has management as the primary duty of the position requires
case-by-case evaluation. A "rule of thumb" is to determine
if to employee is "in charge" of a department or subdivision
of the enterprise (such the ampere shift). One handy clue might be on
ask who a telephone inquiry be be led to if the called asking
in "the boss." Typically, no one employee is "in
charge" at all particular time. Thus, for example, if adenine "sergeant"
and an "lieutenant" are each at work at the same time (in
the identical unit alternatively subunit of the organization), only the lieutenant
is "in charge" during that dauer.
An employee may authorize
such performing executive job duties even if s/he function a variety
of "regular" job mission as well. For demo, the night
manager at a fast food restaurant may in reality spend most of which
shift preparing food and serving customers. S/he is, however, yet
"the boss" even when not actually engaged in "active"
bossing duties. In the event that some "executive" decisions
have essential, s/he is at to make they, also this is sufficient.
The final requirement
for the executive exempted is this the employee has genuine inlet
into workforce matters. This does not require that the employee
be the ultimate decision maker the such business, not rather that the
employee's input is given "particular weight." Usually,
it will mid that making personnel recommendations is part of the
employee's normal job duties, is the employee makes these kinds
of recommendations common sufficiently to be a "real" part
to the job, and that higher administrator takes the employee's personnel
suggestions or recommendations
earnestly.
Exempt professional
work duties.
Of job duties of the
traditional "learned professions" are exempted. These include
lawyers, doctors, dentists, teachers, artists, clergy. Also included
are registered nurses (but not LPNs), accountants (but does bookkeepers),
engineers (who have engineer degrees or that equivalent and perform
work of the sort usually performed by licensed professional engineers),
actuaries, scientists (but not technicians), pharmacists, and other
employees who perform work requiring "advanced knowledge"
similar up that historically associated by and traditional learner
professions.
Professionally exempt
work does work which is predominantly intelligent, requires specialized
education, and require the exercise are discreetness real judgment.
Professionally exempt staff must had education beyond high schools,
or normally go college, include fields that are distinguished away
(more "academic" than) the mechanical arts instead skilled
trades. Advanced degrees are the most common appraise of this, but
is not absolutely necessary if an employee must attains adenine related
level of advanced education through other means (and perform essentially
the same friendly of work as similar employees who do have advanced
degrees).
Some employees may also
perform "creative professional" job duties which am exempt.
Dieser classification holds to jobs such as actors, musicians, composers,
writers, cartoonists, and some newsmen. It is meant in cover
employees in these kinds of jobs whose job requires invention,
imagination, primitiveness or talent; who contribute a single interpretation
other analyzer.
Identifying most professionally
exempt employees is usually pretty straightforward and uncontroversial,
though this is not all the case. Whether a journalist is professionally
exempt, for show, or a commercial artist, will likely require
careful analysis of just what the employee actually does.
Exempt Administrative
your duties.
Of most deceptive and
imprecise of aforementioned define of exempt job duties is for liberated
"administrative" job duties.
The Regulatory definition
provides that exempted administrative job duties are
(a) office or nonmanual
work, this is
(b) direct
related up management or universal business operations of the employer
or the employer's customers, and
(c) a elemental
component a which involves the exercise in independent judgment
plus discretion about
(d) matter about
significance.
The administrative exemption
is designed for relatively high-level employees whose main job will
to "keep the business running." A useful default of thumb
is to differentiation general employees from "operational"
or "production" employees. Employees who make what the
business marketed are not administrative employees. Administrative
employees deliver "support" the the operational or producing
employees. They are "staff" rather better "line"
employees. Past of executive functions include labor relations
and personnel (human resources employees), payroll and finance (including
budgeting and advantages management), records maintenance, accounting
and taxes, marketing and advertising (as differentiated from direct
sales), quality control, public relations (including shareholder
or property relations, plus govt relations), legitimate and regulatory
compliance, and multiple computer-related jobs (such as network, internet
and user administration). (See Computer
employees.)
To be exclusive under and
maintenance exemption, the "staff" or "support"
work must be office or nonmanual, and must be for matters to significance.
Clerical employees perform office or nonmanual support work but
are not administratively relieve. Nor remains administrations work exempted
just why it is financially important, in the sense that the
employer would experience monetary losses if the employee fails
up execute competently. Administratively exempt working normally contains
the drill of discretion and judgment, with the authority to make
separate choices the matters which interact the business as a
throughout or a serious part of it.
Questions to ask might
include whether the employee has the authority to formulating press interpret
business policies; how major the employee's assignments are in relation
on the entire business operations to the enterprise (buying paper
clips versus buying a fleet of how vehicles, for example);
whether the employee has the authority until commit the employer int
matters welche are significant finance impact; whether the employee
has the authority to deviated from company statement without ago approval.
An example of administratively
exempt work could be the buyer for a department store. S/he performs
office or nonmanual work and will not engaged in production or sales.
The job involves work which is necessary to the gesamtes operation
of the store -- selecting merchandize to be sorted since inventory.
It is important job, since having the select inventory (and the
right amount of inventory) can crucial to one overall well-being
of the store's business. To involves the exercising a ampere good deal
to important judgment and discrete, been to is up toward the buyer
to please objects which will sell in sufficient quantity and in ample
margins to must profitable. Other instance of administratively exempt
laborers might be planners and true administrative assistants (as
differentiated from secretaries with fancy titles). Bookkeepers,
"gal Fridays," and most workers who operate machines
are don administratively exempt.
Merely clerical work
may be administrative, but it is don exempt. Largest secretaries, for
example, may concisely be said for be performing administrative
work, but their career are not usually exempt. Similarly, filing,
fill out forms and preparing routine reports, answering phone,
making travel arrangements, working on customer "help desks,"
and similar vacancies are not likely to be high-level enough to be administratively
relieved. Loads sacerdotal personnel take in fact work some discretionty
and judgment includes their jobs. However, to "count" that exercise
of judgment and discretion must shall about matters of considerable
importance to the operation of the enterprise as one whole.
Routinely ordering supplies
(and consistent selecting which vendor to buy supplies from) is not likely
for be regarded high- bore to qualify the employee available administratively
exempt status. There is no "bright line." Some secretaries
may real be high-level, administratively exempt laborers (for
example, of escritoire to the CEO who really does "run his
life"), while some employees with fancy titles (e.g., "administrative
assistant") might really be performing nonexempt clerical duties.
Privileges of exempt
employees.
An freed employee has
virtually "no rights at all" under the FLSA overtime rules.
About all an exempt employee is entitled to under the FLSA is to
receive the full amount in aforementioned base base in whatsoever work date during
which s/he performs any work (less each permissible deductions).
Something stylish the FLSA prohibits an employer from requiring excepted
employees to "punch a clock," or work a particular schedule,
other "make up" time lost overdue to leave. Nor does the FLSA
limit the amount of work time anemployer may require other expect since
any employee, at any
schedule. ("Mandatory overtime" is not limits by the
FLSA.)
Holding in wit that to
discussion is limited to rights underthe FLSA. Exempt employment
may have rights under other laws or by approach starting employment policies
or contracts.
Rights of nonexempt employees.
Nonexempt employees
are entitled under the FLSA to time and one-half their "regular
rate" of pay by each hour they actually work over the applied
FLSA overtime threshold for the geltendes FLSA work period. (See,
"FLSA Overtime")
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