Conclusion: Computer Cory is FLSA nonexempt (he is protected by FLSA coverage like overtime pay). Next, we look at Computer Corys actual work and job duties. Whether an employee creates or modifies source code is immaterial to the application of the Computer Employee exemption. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments, https://www.federalregister.gov/documents/2019/09/27/2019-20353/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and, The employee must be compensated either on a salary or fee basis at a rate not less than $684. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. var currentUrl = window.location.href.toLowerCase(); Sometimes an employer will make a mistake and erroneously classify a worker as a computer professional. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} If you are an employee working in a computer-related occupation such as computer programming, systems analysis or software engineering, you may have been told you are not entitled to overtime pay under the federal Fair Labor Standards Act (FLSA). To qualify for the computer employee exemption, the following tests must be met: The computer employee exemption does not include employees engaged in the manufacture or repair of computer hardware and related equipment. Although there was a procedural manual to guide them, the manual was not a set of strict requirements governing the contents of the procedures developed. 1. Download Adobe Reader, An official website of the U.S. General Services Administration. For an employer to determine if a worker is exempt from Minimum Wage Act Requirements, the employer must make sure the worker meets each element of the job duties test. 29 C.F.R. These functions under his job duties are complex and require high-level skills. part 541 with an effective date of January 1, 2020. The general requirements for satisfying the professional duties test are set out in the U.S. Department of Labor's regulations at 29 CFR 541.300. The FLSA allows for exemptions from these overtime and minimum wage requirements for certain employees who work in administrative, professional and executive jobs (known as "exempt" employees). The Computer Professional Exemption Texas, Nov. 15, 2011) (unpublished), the evidence showed that the employees responsibilities included installing and tailoring the employers software to suit the employers clients needs, trouble shooting problems, training the clients, working with the employers programmers and coders to provide them with information they needed to produce software that suited the clients needs, verifying that software performed as needed, and consulting with clients for new product ideas and enhancements.4The court concluded that the employees responsibilities met the criteria for the administrative exemption and granted the employers motion for summary judgment on the employees claim for overtime pay. We and the third parties that provide content, functionality, or business services on our website may use cookies to collect information about your browsing activities in order to provide you with more relevant content and promotional materials, on and off the website, and help us understand your interests and improve the website. Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely 29 C.F.R. Former 541.207(b). Federico v. Overland Contr., Inc., 2013 U.S. Dist. Substantive revisions made after 01/1 9 /2021 are noted at the end of affected provisions below. Remember, that an employees job duties can be described as consulting, analysis, or testing relating to computers does not mean that [the employee] falls within the ambit of a provision that is designed to exempt computer programmers, network designers, and software developers. Hunter v. Sprint Corp., 453 F. Supp. The Sixth Circuit held that the technical writers were exempt as administrative employees. Its important to check each employee based on the FLSA exemption tests. 3. Under the FLSA, a worker is an exempt computer employee if he/she: Federal and state employment laws are often similar in the specific rules they establish. 29 C.F.R. Classifying computer employees as exempt or nonexempt is often especially frustrating. Former 541.207(a) and (d). Although Computer Professionals are generally understood to be employees with a certain degree of expertise in their field, the Federal Regulations specifically acknowledge that [w]hile such employees commonly have a bachelors or higher degree, no particular academic degree is required for this exemption. 29 C.F.R. LEXIS 144146, *43 (N.D. Primary duty: The employees primary duty includes the exercise of discretion and independent judgment with respect to matters of significance. This fact sheet provides information on the exemption from minimum wage and overtime pay for employees in computer-related occupations provided by Sections 13(a)(1) and 13(a)(17) of the FLSA as defined under 29 C.F.R 541.400. LEXIS 106005 (D. The employee receives pay on a salary basis. 3. To qualify for the executive employee exemption, all of the following tests must be met: The employee must be compensated on a salary basis (as defined in the regulations) at a rate not less than $684 * per week; As a result, the court concluded, they largely solved clients problems without substantive guidance from the Lawson project managers and satisfied the test for exemption. make above a certain hourly wage or rate, or. Employees must pass all three of the tests below to be exempt from FLSA coverage: From what we read above, it seems that any computer professional or IT employee has FLSA exempt status under the computer exemption, right? LEXIS 91139, *28-32 (N.D. Cal. Finally, an exempt administrative employee must exercise discretion and independent judgment customarily and regularly, a requirement that is met by the employee who normally and recurrently is called upon to exercise discretion and independent judgment in the day-to-day performance of his duties, but not by only the occasional exercise of discretion or independent judgment. .manual-search ul.usa-list li {max-width:100%;} 2012). While these professionals most likely hold higher degrees to perform these duties, the level of education is irrelevant when determining FLSA exempt status. LEXIS 52867 (S.D. Please note: Our firm only handles criminal and DUI cases, and only in California. This requirement can apply where the employees primary duty involves acting as an adviser or consultant to the employers customers. The Fair Labor Standards Act requires the payment of overtime to all employees unless their work fits within one of the statutes exemptions. 2d 1050, 1064 (D. Minn. 2011). performing a combination of the above-listed duties. Pay Transparency Has Soared in the Past Three Years, How to Handle Overtime, Meal Break and Other Wage and Hour Crises. rights of exempt employees from non-exempt employees. Allen Smith, J.D., is SHRMs manager of workplace law content. Related article: White-Collar Wrinkles, HR Magazine, December 2004. In addition, these professionals must perform certain work dutiesto qualify as exempt employees. [CDATA[/* >