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 The employee’s primary duty includes the exercise

of discretion and independent judgment with

respect to matters of significance.

The administrative exemption is one of the more

difficult to apply, as it does not include the kinds of

“bright line” tests found in the other two. In general,

these are employees whose role is to support the

operations of the business as opposed to producing or

generating what the business sells. Examples include

human resource staff, payroll or finance, accounting,

marketing and public relations, and legal and regulatory

compliance. Even within those areas, only those

employees who have to exercise independent judgment

on “matters of significance” will be considered exempt.

Here are some of the most common mistakes we

have seen employers make in this area:

44| Rules of the Road