flsa exemption test for computer professionals

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. Conclusion: Computer Cory is FLSA nonexempt (he is protected by FLSA coverage like overtime pay). You may check boxes in more than one exemption category. In addition, these professionals must perform certain work duties to qualify as exempt employees. Moreover, the employers description of the tasks, performance and decisions made by an IT support specialist did not demonstrate that their primary duty includes the exercise of discretion and independent judgment with respect to matters of significance to management or general business operations of the employer, the DOL emphasized. Symbols refer to GT's office structure, which is detailed on the Disclosures page. The design, documentation, testing, creation or modification of computer programs related to machine operating systems; $455 per week if paid on a salary basis (annual salary of $23,660); or. Rates are available between 10/1/2020 and 09/30/2023. Governmentwide contracts for products and services at volume discount pricing. A Computer Professional can be paid on a salaried or hourly basis, but must receive compensation equal to or greater than: Note that, if a Computer Professional is paid on an hourly basis, then the minimum weekly pay required in order for the employee to qualify for the exemption will be $1,105.20, based on a 40-hour workweek a much higher amount than the minimum $455 per a week which is required for a Computer Professional that is paid on a salaried basis. This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } Finally, the exercise of discretion and independent judgment implies that the employee has authority to make an independent choice, free from immediate direction or supervision. Further, on the compensation side, in order to satisfy the exemption the employee must be paid at least $455 per week on a salary basis2or on an hourly basis at a rate not less than $27.63 an hour. Exempt computer professionals must work on or with computers as their "primary duty." This extends beyond the use of a computer as daily functions, and refers to those who work directly with, create or alter computer technology, such as operating systems and software. 3. (unless otherwise listed separately).". The analysis always starts with the DOL regulations defining and explaining the general requirements for application of the exemption. The requirement that the employees primary duty necessitates the use of discretion and independent judgment in matters of significance generally means that the employees primary duty involves the comparison and the evaluation of possible courses of conduct, and acting or making a decision after the various possibilities have been considered. On April 20, 2004, the U.S. Department of Labor,Wage and Hour Division, issued the new exempt status rules for "white collar" employees under the Fair Labor Standards Act (29 C.F.R. 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. When a military installation or Government - related facility(whether or not specifically named) is Professional Employee section This section helps you in determining whether a particular employee who performs work in a recognized professional field (e.g., law, medicine, science, music, art, teaching) meets the duties tests for exemption from the minimum wage and overtime pay requirements of the FLSA. In determining that the IT support specialists were not exempt, the DOL gave particular emphasis to the jobs primary duties. Regardless of the type of duties performed, an employee cannot be an exempt Computer Professional under the FLSA unless the employees compensation is equal to or greater than certain minimum requirements. 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. 1 The so-called white collar exemptions also include executive and professional employees and outside sales persons who are paid on a commission basis. Disclaimer: Past results do not guarantee future results. Whether an employee exercises discretion and independent judgment in matters of significance includes factors such as: (1) whether the employee has authority to formulate, affect, interpret or implement management policies or operating practices; (2) whether the employee carries out major assignments in conducting the operations of the business; (3) whether the employee performs work that affects business operations to a substantial degree, even if the employee's assignments are related to operation of a particular segment of the business; (4) whether the employee has authority to commit the employer in matters that have significant financial impact; (5) whether the employee has authority to waive or deviate from established policies and procedures without prior approval; (6) whether the employee has authority to negotiate and bind the company on significant matters; and (7) whether the employee provides consultation or expert advice to management. In Ortega v.Bel Fuse Inc., 2016 U.S. Dist. If an employee does not meet the exemption requirements under the computer employee professional test, he/she may meet the requirements under the administrative or executive duties test. the documentation, creation, or modification of computer programs related to design software or computer hardware (or related equipment) for computer and machine operating systems. Importantly, the Computer Professional exemption is not inapplicable simply because an employee is given some direction with regards to how the analysis or evaluation of a computer system is to be performed, so long as the employee is still required to apply some of his or her own analysis and judgment in resolving problems. Keep in mind that a job title alone cannot determine FLSA status for any employee. Starting a Business, Licensing & Compliance, Guidelines for Hiring or Firing Employees, Drug Testing Your Workforce Best Practices, For Employers of Uniformed Services Members, Employer Considerations For Government Contractors, Litigation vs. A Closer Look At FLSAs Computer Professional Exemption, Greenberg Traurigs Global Immigration & Compliance Practice Continues Employer-Focused Webinar Series in May, No Longer a Slap on the Wrist: OSHA Continues to Raise Its Maximum Penalty Amounts, Federal OSHA Emphasizes Heat-Related Illnesses and Injuries in the Workplace. 5 percentMonitor automated alerts generated by system management tools and make decisions on the most effective resolution. surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties, F3d 979 (7th Cir. See other fact sheets in this series for more information on the exemptions for executive, administrative, professional, and outside sales employees, and for more information on the salary basis requirement. The term primary duty refers to the principal, main, major or most important duty that the employee performs. 29 C.F.R. The employee receives pay on a salary basis. 541.400(a). Tex. the application of systems analysis techniques and procedures, the design, development, testing, or modification of computer systems or programs, and. 541.202(a). There is an additional potential FLSA exemption for certain computer employees. 2. 2d 1050, 1064 (D. Minn. 2011), the court analyzed the consultants duties under the second and third prongs of the administrative exemption under the DOL regulations cited above, and concluded that the Lawson consultants came within the exemption. To qualify for the computer employee exemption, all of the following tests must be met: $684 per week on a salary or fee basis (except for $455 in Northern Mariana Islands, Guam, Puerto Rico, and the U.S. Virgin Islands and $380 for Samoa) or. 2007). Is the worker employed as a computer systems analyst, computer programmer, software engineer, or other similarly skilled worker in the computer field? The term matters of significance refers to the level of importance or consequence of the work performed. 200(a) set out the general requirements to be met for an employee to qualify as an exempt administrative employee as follows: 1. 29 USC 213(a)(17); 29 CFR 541.400-402. LEXIS 144146, *43 (N.D. LEXIS 45588, *22-23 (N.D. California Labor & Employment Attorney Wage and Hour Laws Computer Professional Exemption. Cory does not pass this test. Significantly, writing computer code has been held to be critical to the analysis of this exemption. Cruz v.Lawson Software Inc., 764 F.Supp. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { at *17. While not uniform, courts have applied the above regulatory requirements and standards to find the administrative exemption applicable to information technology/computer staff positions under certain circumstances. For example, a systems analysts and computer programmers may meet the duties requirements for the administrative exemption if their primary duty includes planning, scheduling, and coordinating activities to solve complex business, scientific, or engineering problems. H-97-0322 (S.D. That change is presently enjoined by a federal court order. 541.400(b) require that in order for an employee to qualify as an exempt computer professional, the employees primary duty must consist of the performance of any of the following duties, or any combination thereof, the performance of which requires the same level of skills: 1. 8 CCR 11040(11)(B) Administrative exemption regulations. The Computer Professional exemption is not available, however, to an employee whose job merely requires highly specialized knowledge of computers and software. Instead, in order to qualify for the exemption, an employees job duties must meet a higher standard, requiring the theoretical and practical application of highly-specialized knowledge in computer systems analysis, programming, and software engineering.. The FLSA computer exemption does not include workers who deal with the repair of computer equipment or hardware.

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