Takeaway: The classification of employees as exempt or nonexempt under the Fair Labor Standards Act (FLSA) is one of the most complex and difficult issues in federal wage and hour law. When classifying an employee under the FLSA, it is the employee's job duties, not title, that determine whether the employee qualifies for an exemption. Those duties must strictly meet the criteria of the exemption being claimed. Use care when making a classification determination, and consider seeking the advice of a qualified employment law attorney.
An employer failed to show that the Fair Labor Standards Act's (FLSA's) administrative exemption applied to two former employees who were suing for unpaid overtime, the 11th U.S. Circuit Court of Appeals ruled. Although the employees' investigative duties were important to the employer's business, that did not make the workers administrative employees, the court said.
The employer investigated damage to broadband service providers' infrastructure and then tried to collect money on the providers' behalf from the party responsible for the damage. The employees worked as property damage investigators. After their employment ended, the employees brought FLSA claims against the company for unpaid overtime wages.
The FLSA requires employers to pay overtime to covered employees who work more than 40 hours a week but exempts certain categories of employees from that requirement. To apply the administrative exemption, an employer must prove that...
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