Administrative Exemption

An administrative exemption is a classification that allows certain employees to be exempt from overtime pay requirements under labor laws. Typically, these are employees in managerial, executive, or professional roles who perform specific duties and meet certain salary thresholds. Because they are exempt, their employers are not obligated to pay extra for hours worked beyond the standard workweek. This exemption helps employers correctly classify employees based on their job responsibilities and ensures compliance with employment regulations.