FLSA Overtime Security Advisor

Administrative Employees

You indicated that:

• The employee is paid a set fee for each job performed (e.g., consultation fee) regardless of the time it takes to complete the job, and the fee computes to a rate that would yield at least $684 per week if the employee worked 40 hours;
• The employee's primary duty is the performance of office or non-manual work which is directly related to the management or general business operations of the employer or the employer's customers; and
• The employee exercises discretion and independent judgment regarding matters of significance when performing his or her primary duty.

Therefore, based on these responses, the employee appears to meet the duties tests to be considered an exempt administrative employee. However, to qualify for exemption on a "fee basis," certain other tests must be met to demonstrate the employee is paid at a rate not less than $684 per week. You should also review the Compensation Requirements section to determine whether the employee's pay meets the criteria for exemption. An employee who does not meet all of the tests for exemption is entitled to the minimum wage and overtime pay protections of the Fair Labor Standards Act (FLSA).

If you have further questions about your situation, you may want to review Fact Sheet 17C: Exemption for Administrative Employees Under the FLSA or contact your local Wage and Hour Division office.

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