Employees should only be denied overtime if they are a salaried employee making more than $455 per week and they meet the following two tests of the administrative exemption:
- The employee’s main duty is to perform office or non-manual work directly related to the management or business of the employer or their customers.
- The employee can exercise discretion and independent judgment with respect to significant matters.
Several factors are considered when determining whether a worker exercises independent judgment with respect to significant matters. Some of these factors include:
- Whether the worker has the power to make, interpret or implement management policies
- Whether the worker performs major assignments
- Whether the worker performs work that affects the company to a significant degree
- Whether the worker gives advice to managers
- Whether the worker represents the business in dealing with complaints or disputes
- Whether the worker can bind the company on important matters