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Preserve employees’ exempt status; give explicit ‘discretion and judgment’ power

12/31/2009

Be wary of applying the FLSA exempt administrative classification to employees simply because they perform office or nonmanual work directly related to the company’s management or general business operations. Such a misclassification neglects the second part of the administrative-exemption test: that the employee’s “primary duty include the exercise of discretion and independent judgment with respect to matters of significance.”

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