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March 04, 2010
Three Factors that Determine Administrative Exemption

Employment attorney Olivia Goodkin explored the administrative exemption to overtime laws in a recent webinar from BLR. During her presentation of “Job Descriptions: How to Tackle Tricky Drafting Hurdles to Maximize Compliance and Effectiveness,” she specified three factors that determine whether an administrative employee is exempt from overtime:

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  1. The employee’s primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers.
  2. The employee’s primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.
  3. The employee must be paid on a salary basis at not less than $455 per week.

Olivia Goodkin, Esq. is a partner in the Los Angeles office of Rutter Hobbs & Davidoff where she specializes in liability avoidance and employment-related litigation. She can be reached via email at mogoodkin@rutterhobbs.com.

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