Here’s a quick checklist to help you determine if an employee qualifies under the administrative exemption to the overtime laws. Your administrative employee is probably exempt in California only if you answer yes to all of the following:
- Does the employee perform office or nonmanual work directly related to management policies or to the general business operations of your organization or customers, or does the employee perform functions in the administration of a school system or educational institution in work directly related to academic instruction or training?
- Does the employee customarily and regularly exercise discretion and independent judgment?
- Does the employee: a) regularly and directly assist a proprietor, manager, or exempt administrator; or b) perform under only general supervision work along specialized or technical lines requiring special training, experience, or knowledge; or c) execute special assignments and tasks under only general supervision?
- Does the employee spend more than 50 percent of work time performing administrative duties, including work that is “directly and closely related” to exempt work?
- Does the employee earn at least the statutory minimum monthly salary? (Based on the current California minimum wage of $7.50 per hour, the required annual salary is $31,200.)
Paying Overtime: 10 Key Exemption Concepts
Only one thing really matters in the determination as to whether or not an employee is exempt: The duties the employee performs. Learn how to avoid costly, preventable mistakes with our free White Paper, Paying Overtime: 10 Key Exemption Concepts.
Additional Resources:
Division of Labor Standards Enforcement Administrative Exemption information Division of Labor Standards Enforcement