Defining an Employee
An employee is defined broadly by the Act as “any individual employed by an employer.” Given the very expansive language used in the Act, courts have interpreted this definition over the years, focusing on the economic realities of the relationship between the employee and employer.
Independent contractors are not covered by the Act and determining whether someone is an independent contractor depends several factors, including the degree of control exercised by the “employer”, the relative investments of the “employee” and “employer”, the “employee’s” opportunity for profit or loss, the skill required in the job, and the permanency of the relationship between the “employee” and “employer.”
The “White Collar” Exemption
One of the most important exemptions in the Act has been colloquially recognized as the “white collar” exemption. Under Section 13(a)(1) of the Act, the general class of executive, administrative, professional, and outside sales employees are exempt from the minimum wage and maximum hour provisions of the Fair Labor Standards Act. Over time, there has been a significant amount of litigation regarding the requirements and characteristics of so-called “white collar employees” not covered by the Act. Moreover, the Secretary of Labor (the agency tasked with promulgating regulations regarding the scope of the Act) has passed numerous rules in order to implement the “white collar” exemptions.
Executive Employees
Generally, “executive” employees are those employees who: (1) have the primary duty of managing the business or a specific department or subdivision of the business; (2) regularly direct and/or supervise of two or more employees of the business; (3) hires and/or fires other employees or makes suggestions as to hiring, firing, promotion and/or demotion decisions; (4) have discretionary power; and (5) earn a salary of not less than $250 per week.
Administrative Employees
“Administrative” employees are generally considered as employees who primarily perform office or non-manual work that is directly related to the administrative operations of the business, and are exempt from coverage under the Act. This includes advising management, working in business planning, purchasing, sales promotion, negotiations, and research functions. Routine clerical work and other day-to-day administrative tasks are not considered to meet the above test and, thus, employees who perform such work are generally covered under the Act.
Professional Employees
In general, there are several types of employees that are considered “professional” employees under the Fair Labor Standards Act. Learned professionals are those who have achieved advanced educational requirements and work in fields of science or learning, such as medicine, and law. Artistic professionals such as musicians, painters, and novelists may also be considered exempt.
Contact Us
To learn more about your rights as an employee under the Fair Labor Standards Act, contact the overtime lawyers of Tycko & Zavareei LLP today at 202-973-0900.
