Administrative Employee Exemption to New York Overtime: Who Does it Apply to?

What is the Administrative Employee Exemption to Overtime in New York?  New York City Wage and Hour Lawyer Explains

Under both federal law and New York labor law, employers are required to pay certain employees overtime wages for all hours worked in excess of 40 hours in a workweek.  The overtime rate is one and half (1.5) times the regular rate of pay.  However, certain employees are exempt from overtime under New York Labor Law s 651.  One class of employees who are exempt from overtime are individuals who are employed in a “bone fide administrative capacity.”  This is known as the administrative employee exemption, and it is an important exemption to understand because it can span a wide range of job titles.

Our New York City wage and hour lawyers at SAMUEL & STEIN handle overtime claims and advise employers and employees of their rights in properly paying or receiving overtime pay.  This is particularly true to the exemptions to overtime which can be tricky and require an understanding of what is and is not considered entitled to the exemption.  To learn more, give us a call at (646) 681-4193.

What is the “Administrative Employee Exemption” to New York Overtime

An employee who is employed in a bone fide administrative capacity is exempt from receiving overtime pay.  In order for an individual to qualify for the administrative employee exemption, all of the following criteria must be met:

  • The individual’s “primary duty” must consist of office or non-manual field work which is directly related to management policies or general operations;
  • The individual must customarily and regularly “exercise discretion and independent judgment”;
  • The individual must regularly and directly assist an employer, employee designated an executive or other administrative capacity, or an employee who performs under general supervision, work along specialized or technical lines requiring special training, experience, or knowledge; and
  • The individual is paid for their services on a salary basis of not less than $543.75 per week, including board and other allowances.

If an individual satisfies all of these criteria, the individual will qualify as an “administrative employee” and will be exempt from the overtime requirement.

Are There Exceptions to the Administrative Employee Exemption?

Generally, the only exception to the administrative employee exemption is if there is a union, contract, or other collective bargaining agreement which permits an exempt employee to receive compensation in certain instances.  In that situation, an employee will be bound by what the employer and union/employee agree to under the contract.

Additionally, an employee who actually does not satisfy all of the requirements above will also not qualify as an administrative employee.  This may seem obvious, but there is a plethora of caselaw which applies very narrow definitions and findings to the elements above.

Unsure if the Administrative Employee Exemption Applies?  Call Us to Learn More!

The experienced New York City Wage and Hour attorneys at SAMUEL & STEIN are dedicated to asserting and defending the rights of employers and working people throughout New York and New Jersey.  We have the resources, experience, and knowledge necessary to ensure your legal rights are protected and you are not taken advantage of.  Call us today by dialing (646) 681-4193 or use the convenient “Evaluate Now” box on our webpage.  Together we can help answer your questions and protect your rights.

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