Employers Should Use FLSA Administration Exception with Caution
In Eldredge v. EDCare Management, Inc., the executive assistant to the company president worked 50-65 hours per week for her employer, which viewed her as exempt under the administrative category. To qualify for this exception, the job must meet all three of these requirements:
- Compensation of at least $455 per week
- Primary duty is the performance of office or non-manual work directly related to the management or general business operations of the employer
- Primary duty includes the exercise of discretion and independent judgment with respect to matters of significance
Ironically, the main evidence favoring the employer came from the employee. At one point, she wrote a letter to the employer in applying for a new position. In the letter, she admitted the following:
In addition to paying the penalty, the employer must perform the following activities:
- Employees and clients could rely on her to handle whatever was at hand or find the right person who could handle the task
- She was an “extension” of the president
- She acted as a liaison with the high-level employees at hospitals and healthcare entities
- Most of her responsibilities required confidential conversations and review of confidential documents
You might think this would be sufficient for the employer to win the day. It was not. The District Court concluded that the case was not a slam dunk for the employer and denied its motion for summary judgment. In particular, the employer did not prove that the job entailed decision-making or authority (exempt) instead of simply being helpful (non-exempt).
Many employers would do well to conduct a self-audit of the jobs classified as FLSA non-exempt. Courts construe the administrative exception more narrowly than many employers do. The safe position is if in doubt, make the position non-exempt.
The time and attendance of non-exempt employees must be accurately tracked. If you are considering a comprehensive timekeeping software system, consider TimeForce from Infinisource. Click here to view a demo or request a quote.
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