Administrative Exemption

IT specialists, loan officers, and pharmaceutical representatives, among others, are commonly misclassified under the administrative exemption. The administrative exemption applies to employees who perform office or non-manual work which is directly related to the management policies or general business operations of their employer or their employer’s customers. They must regularly exercise discretion and judgment in their work and perform under only general supervision work along specialized or technical lines requiring special training, experience, or knowledge or execute under only general supervision special assignments and tasks. Employees primarily engaged in producing the employer’s product or service are not properly classified as administrative employees. They must receive a guaranteed salary of not less than two times the state minimum wage for full-time employment for each week.