FLSA White Collar Exemptions

Overview of the Fair Labor Standards Act (FLSA)

  • Understanding exemptions from minimum wage and overtime provisions set by the FLSA.

  • Exempt employees are not guaranteed minimum wage or overtime pay.

White Collar Exemption Requirements

  • Definition: White collar exemptions are specific criteria under the FLSA that categorize certain employees as exempt from minimum wage and overtime regulations.

  • Categories: There are three primary categories under white collar exemptions:

    • Executive

    • Administrative

    • Professional

Executive Exemption

  • Salary Requirement: To qualify as an exempt executive, an employee must earn a minimum of 684 per week.

  • Job Duties Test Requirements:

    • Employee must have significant decision-making responsibilities.

    • Evaluation based on actual job duties and responsibilities.

    • Responsibilities include:

    • Managing a company, department, or subdivision of the company.

    • Directing the work of at least two full-time employees.

    • Authority to hire or fire employees.

    • Managing the operations of the business.

Administrative Exemption

  • Similarities to Executive Exemption: The administrative exemption shares some qualifications with the executive exemption.

  • Job Duties Test Requirements:

    • Work must be non-manual or office-based, related to managing business operations or servicing customers.

    • Employee must exercise discretion and make significant independent decisions.

    • Requirements also include managing operations pertaining to the business or its customers.

Professional Exemption

  • Salary Requirement: The professional exemption also follows similar salary criteria as executive and administrative exemptions.

  • Job Duties Test Requirements:

    • Must perform work requiring advanced knowledge, typically in a field of science or learning.

    • Advanced knowledge should stem from specialized instruction or prolonged educational courses.

    • Includes creative professionals, who must demonstrate skills that require invention, originality, and talent within artistic or creative fields.

    • Responsibilities include the utilization of advanced knowledge or creative talents in the job role.

Distinction Between White Collar and Blue Collar Workers

  • White Collar Workers: Generally refers to employees engaging in non-manual labor, often in office settings (e.g., answering phones, administrative tasks).

  • Blue Collar Workers: Employees engaged in physical or manual labor, such as construction jobs (e.g., building walls).

  • IRS Terminology: The term "white collar" distinguishes exempt employees (professional roles) from non-exempt, manual laborers (blue collar roles).

Conclusion

  • Recap of the three primary white collar exemption categories under the FLSA: Executive, Administrative, and Professional.

  • Importance of understanding these distinctions for employees regarding wage and overtime rights.

  • Acknowledgement of the provided information about White Collar Exemptions.