In last week's HR Tip, we explored the different types of exemption from overtime pay allowed by the Department of Labor. One of the most misunderstood and misused exemptions our HR Professionals at Nextep see is the Administrative Exemption.

Many employers mistakenly think that this exemption applies to those performing any administrative duties in the office, including typing, bookkeeping, record maintenance, answering phones, or making appointments. According to the Department of Labor, the administrative exemption only applies to employees whose primary duties include discretion and independent judgment in matters of significance to the company's operations or customers.

The administrative professional must be able to make important decisions that have a significant impact on the company in order to be considered exempt. Examples include office managers or hospital administrators.

For assistance in determining your employee's exempt or nonexempt status, please contact Nextep's HR Department.

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