Takeaway: When an employer classifies an employee as exempt under the FLSA, the employer has the burden of proving that all the requirements of an exemption are met. Job titles are not determinative, and the employee's actual job duties must be carefully evaluated to determine whether the second and third requirements of the exemption are met. Employers should critically evaluate whether all employees classified as exempt meet all the requirements of an exemption.
Employees hired as business development managers to persuade corporate customers to purchase General Motors (GM) vehicles are exempt and not entitled to overtime, according to the 11th U.S. Circuit Court of Appeals.
GM developed a program to use business development managers in an effort to increase fleet sales for its dealers. Those employees were responsible for identifying new corporate customers, persuading those customers to purchase GM vehicles for their fleets and then transitioning the sales opportunities to GM dealers.
The business development managers worked for a company called Nexus Business Solutions through an outsourcing arrangement with GM. They filed a collective action, alleging that Nexus owed them overtime under the Fair Labor Standards Act (FLSA). The 11th Circuit held they were not entitled to overtime because they were covered by the administrative exemption.
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