72 | Massachusetts Wage & Hour Peculiarities, 2025 ed. © 2025 Seyfarth Shaw LLP increase this threshold to $844 per week as of July 1, 2024 and to $1,128 per week as of January 1, 2025, but the rule is enjoined as of the date of publication. 2. The employee’s primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers (often referred to as the administrativeproduction dichotomy). 3. The employee’s primary duty must involve the exercise of discretion and independent judgment with respect to matters of significance.411 The following sections discuss the various components of the administrative exemption and provide guidance on what types of job classifications fall within this exemption. (1) Primary Duty Is Office or Non-Manual Work Directly Related to the Management or General Business Operations of the Employer To qualify for the administrative exemption, an employee’s primary duty must be the performance of office or non-manual work that directly relates to assisting with the running or servicing of the business, as distinguished from production or sales work.412 Thus, an employee whose primary duty is working on a manufacturing production line or selling products in a retail or service establishment would not qualify for the administrative exemption.413 Non-manual or office work considered to be directly related to management or general business operations includes but is not limited to work in functional areas such as: Tax Finance Accounting Budgeting Auditing Insurance 411 29 C.F.R. § 541.200. The regulations provide separate requirements for academic administrative employees in educational establishments whose primary duty is performing administrative functions directly related to academic instruction in an educational establishment. See 29 C.F.R. § 541.204. Employers with employees who may meet the requirements of the academic administrative exemption are encouraged to speak to legal counsel regarding the specific elements of this provision. 412 29 C.F.R. § 541.201(a). 413 Id.
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