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An acquaintance who runs a medical office is considering promoting an employee who is currently functioning as a receptionist at an hourly wage. She would be placed on a salary and given additional responsibilities, including taking on some of the load of correspondence for her physician employer. She also will be making decisions concerning the urgency of scheduling patients with problems, and making judgment calls in sending some patients directly to the hospital. That would mean reviewing charts and drafting letters for his approval. She will not be managing any other employees.
She is actually overqualified as a receptionist, as she has an MBA.
From the Department of labor:
Administrative Exemptions
To qualify for the administrative employee exemption, all of the following tests must be met:
•The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $455* per week;
•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; and
•The employee’s primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.
She meets the first two criteria. His question is whether her additional duties meet the last test. The goal is to give her more responsibility, use her MBA skills, but not incur overtime costs. She will certainly be doing a lot more than a receptionist would, though she would continue to do that, too, and what she does would be of significance to patients, as many of the letters impact such things as disability determinations.
An acquaintance who runs a medical office is considering promoting an employee who is currently functioning as a receptionist at an hourly wage. She would be placed on a salary and given additional responsibilities, including taking on some of the load of correspondence for her physician employer. She also will be making decisions concerning the urgency of scheduling patients with problems, and making judgment calls in sending some patients directly to the hospital. That would mean reviewing charts and drafting letters for his approval. She will not be managing any other employees.
She is actually overqualified as a receptionist, as she has an MBA.
From the Department of labor:
Administrative Exemptions
To qualify for the administrative employee exemption, all of the following tests must be met:
•The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $455* per week;
•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; and
•The employee’s primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.
She meets the first two criteria. His question is whether her additional duties meet the last test. The goal is to give her more responsibility, use her MBA skills, but not incur overtime costs. She will certainly be doing a lot more than a receptionist would, though she would continue to do that, too, and what she does would be of significance to patients, as many of the letters impact such things as disability determinations.
What say you, labor law gurus?
I think you answered your own question. Please read the portion of your post that I call out in bold print.
As a business owner, I fully agree with fishbrains that the level of independent and discretionary authority on significant matters meets the standard.
As a business owner, I fully agree with fishbrains that the level of independent and discretionary authority on significant matters meets the standard.
Thanks! Cannot rep you again yet.
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