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What is the administrative exemption?

The administrative exemption requires that an employee be primarily engaged in office work directly related to the management or general operations of the employer or the employer's customers. An administrative employee's job must be "administering" the employer's or the employer's customers' businesses, as opposed to producing the goods or services from which the businesses ultimately generate revenue. The Administrative exemption also requires that the employee's job involve "the regular exercise of independent discretion and judgment with respect to matters of significance."

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