Executive, Administrative and Professional Exemptions FLSA 29 CFR 541.
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Transcript of Executive, Administrative and Professional Exemptions FLSA 29 CFR 541.
Executive, Administrative and Professional Exemptions
FLSA 29 CFR 541
Guaranteed Salary Salary Salary notnot subject to deductionssubject to deductions
Paid the same promised salary each pay day (can be paid semi-monthly or monthly)
Salary must be $455.00 per week Initial and termination weeks can be
prorated by day Partial day deductions are prohibited
Guaranteed salary continued:Full day deductions allowed only if:
With Leave Plan:
Employee voluntarily absent for a full day
Sick, and has exhausted a sick or leave plan
Without Leave Plan:
If no leave plan in place, can not deduct for sickness
If one hour is worked the whole week is payable
Executive ExemptionMust meet all criteria
Primary Duty must be management Supervises two full time employees Authority to hire and fire or recommend Customarily and regularly exercise
discretionary powers Guaranteed salary of more than
$455.00 per week
Primary duty must be management:
Hired to function as the manager More than 50% of time spent
supervising Recognized as the supervisor Job title is not significant What do they actually do?
Supervise two or more employees:
Two full-time employees or part time equivalent
Must be 80 hours of labor Can be three or four part as long as it is 80
hours Must be direct supervision
Authority to hire and fire or recommend:
Must have exercised that authority Must be part of the evaluation process Must have ability to set rates of pay Some weight has to be given to their
recommendations
Customarily and regularly exercise discretionary powers:
Make independent decisions
Set schedules Call for service work
if there is a breakdown
Answer the phone Call for help Ability to fix what is
broken Not very well
defined
Administrative ExemptionCriteria for determination:
Office or non-manual work directly related to management policies or general business operations; OR
Academic instruction or training carried out in the administration of a school system or educational establishment; AND
Criteria continued:
Customarily exercise discretion and use independent judgement
Assist a proprietor or bona fide executive Perform work only under general supervision along
specialized or technical lines that require special training
Execute special assignments Spend no more than 20% of time (40% in retail or
service establishment) on non-exempt work Must be paid on a salary or fee basis of $455.00 per
week
Who are these employees?
Thinkers and planners Advisory specialists, buyers, purchasing
agents Wage rate analysts Safety directors Human Resource managers People that make decisions that affect
profit and loss
Who are they in schools?
Academic administrative employees
Principals and heads of departments
Who are they NOT!!!
Bank tellers, bookkeepers Secretaries Shipping and receiving clerks Accounts receivable and payable staff Payroll staff Building management and maintenance
Key Issues
Perform no production work of any kind
They are not the people who do not fit the other exemptions
Professional Exemptions
Learned
Artistic
Teaching
Learned Professions
Knowledge of an advanced type, four year degree or its equivalency
Field of science of learning Examples – attorneys, doctors, registered
nurses, architects, and engineers Technologists not technicians
Artistic Professions
Creative work requiring imagination or invention
Talent, entertainment industry personnel, radio and television talents, actors and musicians
Teaching Professionals
Certified or recognized
Educational institution or school system
Other criteria
Exercise discretion and judgement Work is predominantly intellectual and varied
– as distinguishable from routine or mechanical
Not more than 20% of time is spent on activities not essentially a part of the professional duties
Salary or fee of $455.00 per week
Exemptions from the salary test:
Holder of a valid license in the practice of law or medicine and engaged in the practice
Medical interns or residents Teachers in schools or education
institutions
“Salary test” waived
Limited to highly skilled computer analysts, programmers, software engineers and specialists, etc.
If employee is compensated at 6 ½ times the minimum wage in effect at the time of the change
$4.25 x’s 6 ½ = $27.63 per hour
For further information:
Contact info: Illinois Dept of Labor
Fair Labor Standards
312-793-2804
Website: www.state.il.us/agency/idol/