The site is secure. The courts narrowly construe the computer professional exemption. at 826; see also Benedict v. Hewlett-Packard Co., 2016 U.S. Dist. #block-googletagmanagerheader .field { padding-bottom:0 !important; } 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. , computer systems analysts, computer programmers, software engineers, and other similarly skilled workers in the computer field are exempt from minimum wage and overtime pay provided they also meet the other tests for exemption like salary level. Additionally, other exemptions may also come into play regarding certain employees and should be considered before assigning FLSA status. The computer professional employee exemption under the Fair Labor Standards Act (FLSA) does not apply to a health care employer's information technology (IT) support specialists, who. 2012). (S.D. 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.. Section 13 (a) (17) of the Act provides an exemption from the minimum wage and overtime requirements for computer systems analysts, computer programmers, software engineers, and other similarly skilled computer employees. These updated job duties tests will take effect July 1, 2020. The plaintiff had obtained multiple technical certifications reflecting his high level of competence. Id. 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. Home Employment and Labor Laws Federal Employment and Labor Laws Fair Labor Standards Act (FLSA) FLSA Exempt Employees FLSA Minimum Wage and Overtime Exemptions, The Fair Labor Standards Act (FLSA) exempts from its minimum wage and overtime standards employees who qualify as computer employees. Research the federal market, report sales, and upload contract information. The phrase directly related to the management or general business operations of the employer or the employers customers refers to the type of work performed by the employee. Martin v. Indiana Michigan Power Co. (6th Cir. A combination of the aforementioned duties, the performance of which requires the same level of skills. In Renfro v. Indiana Michigan Power Company, 497 F.3d 573, 577 (6th Cir. entire installation or facility is the higher of the rates which apply to the cities and / or counties, If you do, you could pay a fortune for unpaid wages and liquidated damages, not to mention all those attorney fees. See id. even though part(s) of such activities may be located outside the defined per diem locality. He does not work as a systems analyst, programmer, or software engineer, he installs and troubleshoots hardware. Can Pay Transparency Reduce Employee Turnover? A school districts secretarial, clerical and bookstore employees may volunteer as ticket-takers, ushers, box office personnel or security workers at games during basketball or football season without compensation to the extent that the services are not the same as or do not resemble services they otherwise are employed to perform (FLSA 2006-40). 200(a) set out the general requirements to be met for an employee to qualify as an exempt administrative employee as follows: 1. Create and troubleshoot network accounts and other business application user accounts as documented in the employee life cycle process. 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.
The FLSA's Professional Duties Test - Part 1 2004). In Allen v. Enabling Technologies Corp., 2016 U.S. Dist. The plaintiff, Ortega, holds multiple certificates in network administration and computer development; held the title of IT Manager and/or Network Administrator/Engineer II for a global corporation that employs more than 5,000 people around the world; and had duties consisting of analyzing, troubleshooting, and testing Bel Fuse's systems networks; and developing a back-up test database, creating a back-up software system and system upgrades. Id.
Are All Computer Employees Exempt From Overtime Under The FLSA var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID");
The FLSA changes, effective beginning December 1, 2016, will raise the salary threshold for overtime pay from $23,600 per year ($455 per week) to $47,476 per year ($913 per week). 646. The design, development, documentation, analysis, creation, testing or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications; or. The Administrative Employee Exemption Unlike some other categories of exemptions, the FLSA computer exemption, does not require computer professionals to hold certain degrees or certifications, According to what youve learned above, is the following person entitled to overtime pay (FLSA nonexempt)?
PDF Fair Labor Standards Act Guide - Oregon.gov Kyle D. Smith A California Labor & Employment Attorney Attorney at Law Updated February 16, 2023 Reading Time 4 Minutes Many times, unpaid overtime pay is a large component of any compensation in these cases. .h1 {font-family:'Merriweather';font-weight:700;}
The Computer Professional Exemption Under the FLSA - General Counsel Law The determination of whether an employee exercises discretion and independent judgment is based on an evaluation of the totality of the facts involved in the particular employment situation. It also means that a worker must be involved in more than the use of computers to be exempt. 5 CFR Part 551 addresses pay administration under the FLSA and "contains the regulations, criteria, and conditions set forth by the OPM as prescribed by the Act, supplements and implements the Act, and must be read in conjunction with it." Download Adobe Reader, An official website of the U.S. General Services Administration.
IT support specialists are not exempt, DOL states - SHRM The FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek. 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. Legal DisclaimerWebsite powered by 321 Web Marketing. The Cruz court further concluded that Lawsons consultants exercised discretion and independent judgment with respect to matters of significance within the meaning of the third prong of the exemption analysis articulated at 29 C.F.R. 1996). In order for this exemption to apply, an employees specific job duties and compensation must meet all the requirements of the Departments regulations. Is the employee paid on a salary or fee basis of at least $455 per week ($913 per week beginning December 1, 2016)? Need assistance with a specific HR issue? Tex. To determine whether the fee payment meets the minimum salary level requirement, the test is to consider the time worked on the job and determine whether the payment is at a rate that would amount to at least $455 per week if the employee worked 40 hours. In Renfro v. Indiana Michigan Power Company, 497 F.3d 573, 577 (6th Cir. The Sixth Circuit held that the technical writers were exempt as administrative employees. PDF versions of forms use Adobe Other exempt laborers include: Sometimes an employer may misclassify a worker as a computer professional. 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. The Computer Professional Exemption The U.S. Department of Labor regulations at 29 C.F.R. The sections use nearly identical wording, and the revision was not intended to change the law. ", Per diem localities with county definitions shall include"all locations within, or entirely Part 2 of the duties test says that workers are exempt if the employees primary duty consists of one or more of the following: The qualification will apply if a primary duty consists of either one of the above or a combination of the aforementioned duties. Shouse Law Group is here to help you fight back. For employers in most non-agricultural industries, the relevant exemptions are found in Section 13(a)(1) of the FLSA, codified at 29 U.S.C.A. 1){
Secure .gov websites use HTTPS Overtime pay, minimum wage, record requirements, age restrictions, and hours worked are some of the standards for employees outlined in this law. Allen Smith, J.D., is SHRMs manager of workplace law content. We can help! Work with competing vendors to determine the best selection based on price, technical functionality, durability, manufacturer support, manufacturer vision and position in the health care industry. 541.202(b). Territories and Possessions are set by the Department of Defense. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) {
Before sharing sensitive information, make sure youre on a federal government site. A recent case, Martin v. Ind. 541.201(b). The design, development, documentation, analysis, creation, testing or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications. Sometimes management misclassifies a non-exempt employee as exempt. at 828. An official website of the United States government. 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. Cory does not pass this test. When a military installation or Government - related facility(whether or not specifically named) is Start Preamble Start Printed Page 51230 AGENCY: Wage and Hour Division, Department of Labor. These five "white collar" exemptions (executive, administrative, professional, computer professional and outside sales) are defined by the Department of Labor (DOL) in the Code of Federal Regulations Part 541. California Labor & Employment Attorney Wage and Hour Laws Computer Professional Exemption. 29 C.F.R. The Department of Labors most recent proposed changes to the regulations defining the FLSAs thresholds for exemption would increase the salary basis requirement from $455 per week to $970 per week. In addition to computer professionals, the following are also exempt employees: California labor laws say that workers qualify as an exempt computer professional if they pass both the: According to this test, workers get labeled a computer professional if they satisfy the job duties test, and: State laws say that workers are computer professionals if they make at least $53.80 per hour. Next, we look at Computer Corys actual work and job duties. 2009). The End Date of your trip can not occur before the Start Date. Department of Labors changes to overtime rules. The, California Labor Code 515.5a1 and 515.5a3. The employees primary duty includes the exercise of discretion and independent judgment with respect to matters of significance. The post-2004 regulation, which excludes duplicative and confusing language included in the pre-2004 statute, provides clarity while maintaining the legal standard. 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. Information on planned federal contracting opportunities. These requirements apply to all of the subcategories of the professional exemption: the learned professional, the creative professional, the teaching professional and the computer professional. Federal assets available via auction to the general public. The revision did not, however, change the fact that the administrative exemption regulations establish a two-part inquiry for determining whether an employee is exempt: (1) what type of work is performed by the employee? The Department of Labor bases these exemptions on specific job duties and compensation. The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Prioritize tasks based on service-level agreement criteria with limited supervision. Job titles do not determine exempted status. The employee . No. Looking for U.S. government information and services? The FLSA clearly states that job titles cannot determine exempt status for computer professionals. Your session has expired. Affecting companies across the U.S., the Department of Labors changes to overtime rules have employers and HR managers taking a second look at employee FLSA status. 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). Customers sought him out due to the high level of skill and expertise. Id. ( ) The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. The Fair Labor Standards Act (FLSA) is the federal statute that also puts computer professionals in an exempt status. LEXIS 144146, *43 (N.D. The term matters of significance refers to the level of importance or consequence of the work performed.
FLSA Professional Exemption - Learned/Creative Professional Exemption The employee receives pay on a salary basis. 541.207 is still cited even in cases decided after the revision. Though this work may be unusually complex and highly specialized along technical lines, it did not meet the administrative exemptions requirement that the jobs primary duty be directly related to the management or general operations, the DOL stated. In addition, these professionals must perform certain work duties to qualify as exempt employees. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. Nor does it include employees whose work is highly dependent upon the use of computers and computer software programs but whose primary duties are not the same as those listed above. California law says that workers not included in the overtime exemption can get paid time and a half when they work: In addition to unpaid wages, workers in a wage/hour lawsuit may receive compensation for any missed meal and rest breaks. up. Employees must also meet the duties test to be considered as exempt. To meet this requirement, an employee must perform work directly related to assisting with the running or servicing of the business, as distinguished, for example, from working on a manufacturing production line or selling a product in a retail or service establishment. If that is the case, employers must comply with whatever protects the employee most. 2004) 381 F.3d 574, Aguilar v. Association for Retarded Citizens (1991) 234 Cal.App.3d 21. computer employees working within particular software system design specifications. Very helpful with any questions and concerns and I can't thank them enough for the experience I had. Employees performing jobs such as computer programming, software engineering, or systems analysis may be exempt even if they do not qualify for the professional exemption.
Fact Sheet #17G: Salary Basis Requirement and the Part 541 Exemptions 29 C.F.R. The court held that it could not determine whether the employees were exempt, or not, without findings of fact as to the type of work that constituted their primary duties. To qualify for the computer employee exemption, all of the following tests must be met: The computer employee exemption includes, but is not limited to, computer systems analysts, computer programmers, software engineers or other similarly skilled workers that meet the above listed criteria. The term matters of significance refers to the level of importance or consequence of the work performed. Please log in as a SHRM member. Does the employees primary duty consist of any of the following: The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software or system functional specifications; The design, development, documentation, analysis, creation, testing or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications; The design, documentation, testing, creation or modification of computer programs related to machine operating systems; or. 2d 44, 52 (D.D.C. Similarly, a senior or lead computer programmer may manage two or more other programmers in a customarily recognized department or subdivision of the employer and may effective make recommendations as to the hiring, firing, advancement, promotion, or other changes of status of the other programmers, thus meeting the requirements for the executive exemption.29 CFR 541.402, State Laws Federal Laws Topics Articles Resources, FLSA Minimum Wage and Overtime Exemptions. Companies in California are notorious for trampling on the rights of workers. 10 percentParticipate in the design, testing and deployment of client configurations throughout the organization. We do not handle any of the following cases: And we do not handle any cases outside of California. 29 C.F.R. 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). Being paid on a "salary basis" means an employee regularly receives a predetermined amount of compensation each pay period on a weekly, or less frequent, basis. the documentation, creation, or modification of computer programs related to design software or computer hardware (or related equipment) for computer and machine operating systems. 3. 5 percentParticipate in the analysis and selection of new technology required for expanding computing needs throughout the organization. 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. #views-exposed-form-manual-cloud-search-manual-cloud-search-results .form-actions{display:block;flex:1;} #tfa-entry-form .form-actions {justify-content:flex-start;} #node-agency-pages-layout-builder-form .form-actions {display:block;} #tfa-entry-form input {height:55px;} Please enable scripts and reload this page. However, Section 13(a)(1) and Section 13(a)(17) of the FLSA provide an exemption from both minimum wage and overtime pay for computer systems analysts, computer programmers, software engineers, and other similarly skilled workers in the computer field who meet certain tests regarding their job duties and who are paid at least $684* per week on a salary basis or paid on an hourly basis, at a rate not less than $27.63 an hour.
PDF FOH Chapter 22 - Exemptions for Executive, Administrative, Professional 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. The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. 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. 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.
FLSA Exemption Determination Checklist - Computer Employee Professional (unless otherwise listed separately).". For additional information, visit our Wage and Hour Division Website: http://www.dol.gov/agencies/whd and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243). The FLSA computer exemption does not include workers who deal with the repair of computer equipment or hardware.
Conclusion: Computer Cory is FLSA nonexempt (he is protected by FLSA coverage like overtime pay). Please confirm that you want to proceed with deleting bookmark. Please purchase a SHRM membership before saving bookmarks. .manual-search ul.usa-list li {max-width:100%;} $("span.current-site").html("SHRM MENA ");
The so-called white collar exemptions also include executive and professional employees and outside sales persons who are paid on a commission basis. To qualify for the FLSA computer exemption, the following tests must be met: Is the employee paid on a salary or fee basis of at least $455 per week ($913 per week beginning December 1, 2016)? Mich. Power Co., decided by the 6th U.S. Part 1 of the test says that a worker qualifies as a computer professional if the worker is: As to this last requirement, note that it cannot be met by job titles alone.4. Federal law provides that employees may be exempt from the overtime wage provisions of the Fair Labor Standards Act (FLSA) in varying categories. The design, documentation, testing, creation or modification of computer programs related to machine operating systems. Reader. The design, documentation, testing, creation or modification of computer programs related to machine operating systems. Please complete the form below and we will contact you momentarily. We did not analyze the applicability of those exemptions, as they seem unlikely to apply here. The burden of proof for establishing that an FLSA exemption applies to a particular position rests with the employer, and the exemptions are narrowly construed against employers seeking to assert them. Shouse Law Group has wonderful customer service. (4th Cir. }
TheU.S. Department of Laborregulations at 29 C.F.R. Those covered under the laws enjoy a non-exempt status. Applying the Fair Labor Standards Act (FLSA) exemption tests to determine who must be paid overtime is difficult. Keep in mind that a job title alone cannot determine FLSA status for any employee. Such technology is already a part of many workplaces and will continue to shape the labor market. | Website Design & Development by High Level Thinkers. 29 C.F.R. 541.207 read: (a) In general, the exercise of discretion and independent judgment involves the comparison and the evaluation of possible courses of conduct and acting or making a decision after the various possibilities have been considered. Share sensitive information only on official, secure websites. Its important to check each employee based on the FLSA exemption tests. This has updated the FLSA "exempt test" for 2019 and beyond, which is a checklist that can help employers determine if an employee is exempt. Computer professionals are exempted from certain rights under California's labor laws. The application of systems analysis techniques and procedures including consulting with users, to determine hardware, software or system functional specifications; 2. 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. The term primary duty refers to the principal, main, major or most important duty that the employee performs. 29 C.F.R. Professional Exemption Test Is the employee's primary duty: The Department of Labor bases these exemptions on specific job duties and compensation. $(document).ready(function () {
Search current federal contract opportunities and procurement notices. 541.700(a). Id. Nor is there a distinction placed upon whether the employee develops new technologies, or merely implements and maintains existing software.
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