Understanding the 'duties test' of the FLSA's administrative exemption

Your employees probably aren't as important as they think they are.

That's not mean. It's just the Fair Labor Standards Act talking.

One of the more misunderstood parts of the FLSA's administrative exemption — the one that supposedly covers "office" workers — is which officer workers it actually covers. The test sounds deceptively simple: to be exempt, an employee must exercise discretion and independent judgment in matters of significance to the business. Most people with a desk, a computer, and a job title ending in "coordinator," "specialist," or "administrator" think they qualify.

Spoiler: they don't.

Salaried doesn't always equal exempt

Just because an employee is paid a salary does not mean they are exempt from overtime.

I came across this question on Reddit:

"I work at a small logistics company—about 10 of us total. I'm the person handling invoices, shipments, and customer calls. My title sounds fancy ('operations associate'), but I don't manage anyone. Lately, I've been doing 55–60 hour weeks because we're short-staffed, but when I asked about overtime, my boss said, 'you're salaried, so that doesn’t apply.' Am I actually exempt just because I'm salaried? Or is my company taking advantage of that label?"

One of the biggest myths in wage and hour law is that being paid a salary automatically makes you exempt from overtime

11 best practices to prevent off-the-clock wage claims

Target recently agreed to pay $4.6 million to settle a class action by warehouse employees claiming they weren't paid for all their work time.

The hourly employees said they had to:
➛ Badge into the building
➛ Walk long distances to their workstations to clock in, and
➛ Go through mandatory security screenings after clocking out.

Target didn't pay those hourly employees for any of that time. Those few minutes each workday added up to millions of dollars.

3.65 million reminders that "do nothing" is the costliest workplace compliance strategy of all.

A federal-court jury just hit a pair of New York hotels (and their owners) with a $1.65 million compensatory and $2 million punitive damages verdict after a female assistant manager alleged residents sexually harassed her daily and management did nothing to stop it.

The facts are brutal — constant sexual comments, physical assaults, even being knocked unconscious by a thrown table. Her male counterpart didn't face the same abuse. Even worse, her bosses ignored or laughed off every complaint that she made. When she asked for a transfer, management said "no openings." Turns out, that wasn't true. She quit in fear for her safety. Then she sued.

The jury believed her. And they made sure the company and its leaders felt it.

This is why DEI gets demonized

Wells Fargo is reportedly settling a class-action lawsuit alleging it held phony job interviews to make its diversity, equity, and inclusion initiatives look better than they really were.

According to the complaint, Wells mandated that for all jobs paying at least $100,000, half the candidates interviewed had to come from diverse backgrounds — women, people of color, veterans, LGBTQ+ individuals, people with disabilities.

But the plaintiffs said those interviews were often shams, conducted after another candidate had already been selected.

WIRTW #778: the 'a$$hole' edition

On this week's episode of The Norah and Dad Show, Norah and I play a few rounds of "Am I the A--hole" — inspired by my purge of our garage that resulted in all Norah's unused pet-fish gear ending up in a dumpster. (And, yes, we both agree that in this story, I am, in fact, the a--hole). We then dive into some recent, and ghastlier, stories from the AITA subreddit. 

We also discuss the fairness (or lack thereof) of exams, get an update on Norah's sorority pledging, and run down our visit to see Grandmom and Grandpop in Philly over fall break.

You will find the full episode on Apple Podcasts, Spotify, YouTube, Amazon Music, Overcast, on our website, or through your favorite podcast app. And if you enjoy it, please like, review, and subscribe—it really helps us grow!

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Here's what I read this week that you should read, too.

Correcting the press: unpaid leave after the FMLA expires

Let's play one of my favorite games: correct the press.
The Issue: unpaid leave as a reasonable accommodation under the ADA.

Cliff Kaplan, 65, worked for a beverage distributor at Beechwood Sales & Service for 16 years. Then came a diagnosis of stage-four esophageal cancer. He took unpaid medical leave under the FMLA while he underwent chemotherapy.

Twelve weeks later his manager called. His FMLA had just expired, and the company needed him back immediately. When Cliff said he wasn't physically able to return, they fired him. No severance, no discussion, no attempt to work it out. Just a letter ending a 16-year career.