The document outlines criteria for determining administrative exemption from overtime pay under the Fair Labor Standards Act (FLSA), highlighting that employees must receive a minimum salary, perform non-manual work related to management, and exercise discretion and judgment in their duties. It provides a checklist for employers to evaluate job descriptions against these criteria and includes examples of acceptable job duties and responsibilities. The supplementary appendices offer detailed guidance on both the checklist usage and sample job descriptions.

1. SALARY AND DUTIES TESTS FOR ADMINISTRATIVE EXEMPTION FROM OVERTIME
– Fair Labor Standards Act (FLSA) Overtime Regulations Checklist –
Effective August 23, 2004
If questions A, B, and C, or questions A and D, are all answered “yes,” the employee may meet the administrative
exemption test; however, it would be prudent to use the checklist in Appendix A; ensure the job description then attach a
completed checklist with the job description (see Appendix B example) and include in the job description all key words
and phrases that demonstrate the position clearly meets the Administrative Exemption criteria.
A. Does the employee receive a salary of at least $455 per week? Yes __ No __
1. Salary means employee regularly receives a predetermined amount each pay period for work he
performs any week.
2. Salary must be exclusive of board, lodging or other facilities.
3. Salary may not be subject to reductions based on variations in the quality or quantity of work (i.e., “snow”
days).
4. Employee may be subject to disciplinary deductions, in full-day increments, pursuant to a written policy
uniformly applied to infraction of workplace safety rules.
5. Absences of a work day or longer may result in full-day increment salary reductions if the absence is
caused by personal illness or other personal reasons.
6. Deductions are unavailable for absences caused by jury duty, witness duty, or temporary military leave.
7. Salary deductions are available for absences governed by the FMLA.
8. Special treatment is available to employees who receive total annual compensation of at least $100,000,
composed of salary, incentive, and other nondiscretionary payments.
B. Does the employee’s primary duty consist of the performance of office or non-manual work directly related to
management policies or general business operations (i.e., administrative work) of the employer or its customers,
as opposed to work primarily involving production or sales of goods or services?
Yes______ No _______
1. In order to identify “administrative” versus “production” work, you must first identify the product(s) or
service(s) provided by the employer, i.e., identify primary business activities of employer (How does
employer generate revenue?).
• After identifying the company’s product(s) or service(s), determine whether the employee’s work primarily
involves “producing” the product or “delivering” the service.
2. The administrative operations of the business include advising management, planning, negotiating,
representing the company, purchasing, promoting sales, and business research and control.
3. These activities frequently include tax, finance, accounting, budgeting, audit, insurance, quality control,
purchasing, procurement, advertising, marketing, research, safety and health, human resources
management, employee benefits, labor relations, public relations, and government relations, computer
network, Internet, and database administration, legal and regulatory compliance
4. Administrative duties do not include routine or structured tasks such as bookkeeping, data tabulation, or
clerical duties.
5. The administrative work must be of substantial importance to the management or operation of the
business, such as work affecting the development of policies or responsibilities to execute or carry out
policy.
6. To qualify as a primary duty, the employee’s principal or most important duty must involve performing the
high-level administrative functions.
7. When an employee spends less than the majority of his/her time performing high level administrative
functions, the employee may still qualify under the administrative exemption if:
a. the relative importance of the high-level administrative duties is greater than the other types of
duties;
b. the employee frequently exercises discretionary powers;
c. the employee is relatively free from supervision; and
d. the employee’s salary is distinguishable from the wages paid to other employees who perform
the same kind of non-exempt work.

2. C. Do the employee’s duties include work requiring the exercise of discretion and judgment? Yes____ No _____
The employee must exercise discretion and independent judgment with respect to matters of significance as
opposed to daily routine decisions.
Independent judgment and discretion involves the comparison and evaluation of possible courses of conduct
and having the authority to make an independent choice, free from immediate direction with respect to
matters of significance. It also does not include the use of manuals, guidelines or software packages to
make determinations.
The exercise of independent judgment and discretion does not include the use of skill in applying techniques,
procedures, or specific standards.
Discretion and independent judgment may be:
making a decision to depart from prescribed standards or permitted tolerances;
making decisions that affect the operational policies of the employee’s department;
formulating recommendations to a customer for the purchase of securities;
making decisions in connection with negotiations where the individual is given “reasonable
latitude” in carrying on those discussions, which are binding on the employer;
formulating recommendations, even if management personnel must review and accept the
recommendation prior to implementation;
formulating or participating in the formulation of policy for the business unit; or
broad authority to commit the employer in substantial respects financially.
5. Discretion and independent judgment is not:
• applying knowledge, following prescribed procedures or determining which procedures to follow;
• determining whether specified standards have been satisfied, even if there is some leeway in
reaching a conclusion;
• performing inspection functions by following established techniques and procedures with skills
acquired through special training or experience;
• formulating recommendations based upon the development of facts concerning conformity with a
known standard;
• comparing items based upon established standards, known through experience or written
manuals;
• screening applicants or conducting interviews to determine satisfaction of certain minimum
qualifications;
• making decisions that do not commit the employer in substantial respects financially or otherwise;
or
• negotiating settlements with policy holders where the individual is not given “reasonable latitude”
in carrying on those negotiations.
D. Does employee’s primary duty consist of performance of office or non-manual work, directly related to academic
instruction or training in an educational institution? Yes / No
An educational institution includes an elementary or secondary school system, an institution of higher education,
and special schools for mentally or physically disabled or gifted children, with no distinction between public and
private organizations.

3. APPENDIX A CHECKLIST
Check below, all items that apply to this specific position:
The principal, main, major or most important duty that the employee performs is the performance of office or
non-manual work directly related to the management or general business operations of the employer
The employee performs 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.)
Work “directly related to management or general business operations” of the employer which includes, but
is not limited to, work in one or more functional areas checked below:
finance;
accounting;
budgeting;
auditing;
insurance;
quality control;
purchasing;
procurement;
advertising;
marketing;
research;
safety and health;
personnel
management;
human resources;
employee benefits;
labor relations;
public relations;
government relations;
computer network,
Internet and database
administration;
legal and regulatory
compliance;
Other similar activities
________________,
________________,
________________.
□ Work “directly related to management or general business operations” of the customer whereby the
employee acts as advisor or consultant to the employer’s clients or customers, as a process expert or
consultant.
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.
The exercise of discretion and independent judgment is more than the use of skill in applying well-
established techniques, procedures or specific standards described in manuals or other sources. (Note: An
employee does not exercise discretion and independent judgment with respect to matters of significance
merely because the employer will experience financial losses if the employee fails to perform the job
properly. Similarly, an employee who operates very expensive equipment does not exercise discretion and
independent judgment with respect to matters of significance merely because improper performance of the
employee’s duties may cause serious financial loss to the employer.)
The term exercise of discretion and independent judgment implies that the employee has authority to make
an independent choice, free from immediate direction or supervision. (Note: the fact that an employee’s
decisions are revised or reversed after review does not mean that the employee is not exercising discretion and
independent judgment.)
□ The employee has authority to formulate, affect, interpret, or implement management policies.
The employee has authority to formulate, affect, interpret, or implement operating practices.
The employee carries out major assignments in conducting the operations of the business
The employee performs work that affects business operations to a substantial degree
□ The employee has authority to commit the employer in matters that have significant financial impact
□ The employee has authority to waive or deviate from established policies and procedures without prior
approval.

4. APPENDIX B - COMPLETED CHECKLIST (EXAMPLE)
Check all phrases and words that apply to this specific position:
• The principal, main, major or most important duty that the employee performs is the performance of office or
non-manual work directly related to the management or general business operations of the employer
• The employee performs 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.)
• Work “directly related to management or general business operations” of the employer which includes, but
is not limited to, work in one or more functional areas checked below:
• finance;
• accounting;
• budgeting;
• auditing;
□ insurance;
□ quality control;
□ purchasing;
□ procurement;
□ advertising;
□ marketing;
□ research;
□ safety and health;
□ personnel
management;
□ human resources;
□ employee benefits;
□ labor relations;
□ public relations;
□ government
relations;
□ computer network,
□ Internet and
database
administration;
□ legal and regulatory
compliance;
□ Other similar
activities
________________,
________________,
________________.
□ Work “directly related to management or general business operations” of the customer whereby
the employee acts as advisor or consultant to the employer’s clients or customers, as a process
expert or consultant.
• 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.
• The exercise of discretion and independent judgment is more than the use of skill in
applying well-established techniques, procedures or specific standards described in
manuals or other sources. (Note: An employee does not exercise discretion and
independent judgment with respect to matters of significance merely because the employer
will experience financial losses if the employee fails to perform the job properly. Similarly,
an employee who operates very expensive equipment does not exercise discretion and
independent judgment with respect to matters of significance merely because improper
performance of the employee’s duties may cause serious financial loss to the employer.)
• The term exercise of discretion and independent judgment implies that the employee has
authority to make an independent choice, free from immediate direction or supervision.
(Note: the fact that an employee’s decisions are revised or reversed after review does not mean
that the employee is not exercising discretion and independent judgment.)
□ The employee has authority to formulate, affect, interpret, or implement management policies.
• The employee has authority to formulate, affect, interpret, or implement operating practices.
• The employee carries out major assignments in conducting the operations of the business
• The employee performs work that affects business operations to a substantial degree
□ The employee has authority to commit the employer in matters that have significant financial impact
□ The employee has authority to waive or deviate from established policies and procedures without prior
approval.

5. APPENDIX C JOB DESCRIPTION (EXAMPLE ONLY)
TITLE: Cost Accountant / Financial Analyst
Job Code:
Salary Grade:
FLSA: Exempt-Admin
“Administrative Exemption” is granted since the primary duty of this position is the performance of office or
non-manual work directly related to assisting the management or general business operations of <Insert
Company Name> with the running of the business or servicing <Insert Company Name> customers; and
whose primary duty includes the exercise of discretion and independent judgment with respect to matters of
significance to <Insert Company Name>.
GENERAL SUMMARY
The senior cost accountant/financial analyst will report directly to the corporate controller and be responsible
for the cost accounting and analysis for manufacturing operations. This position is responsible for cost
accounting, performance reporting and budgeting and forecasting for <insert company name here>.
Incumbent participates in determining objectives of assignment and acts independently within most areas of
responsibility and works under only very general direction following established procedures to perform
financial analysis such as, but not limited to, working capital, budget and expense comparisons, cost
impacts, forecasting, profit and loss statements and income statements. Prepares reports of findings and
presents recommendations to management. This position supports the development of operational
specifications for financial information systems considering such things as information flow, volume, and
document format and carries out major assignments in conducting the operations of the business.
May provide analysis on business development and may monitor business performance by unit or division.
Work is reviewed upon completion for adequacy in meeting objectives, soundness of technical judgment and
overall adequacy and accuracy. Independently determines and develops approach to solutions and
schedule. Frequent inter-organizational and outside customer contacts and represents the organization in
providing solutions to difficult technical problems associated with specific projects affects business
operations to a substantial degree.
PRINCIPAL DUTIES AND RESPONSIBILITIES
1. Interfaces with and impacts decisions of top management, responding to their requests for
financial data and to resolve reporting and compliance issues.
2. Prepares special reports and financial studies for management and alerts management to
significant variances to plan.
3. Coordinates, negotiates, and resolves complex financial compliance issues with various auditors
and agencies requiring substantial discretion and independent judgment to ensure accurate
interpretation.
4. Maintains accurate documented records supporting financial forecasts used in the rate and budget
area directly related to assisting with the running or servicing of the business
5. Ensures compliance with internal procedures and GAAP.
6. Conducts and may lead audits.
7. Designs and delivers presentations to division senior level staff.
8. Communicates complex financial information in an understandable manner to non-financial
customers and ensure management understanding of rate and budget issues.
9. Coordinates and consolidates formal proposals to internal customers with authority to formulate,
affect, interpret, or implement operating practices.
10. Exercises discretion and independent judgment with authority to make an independent
choice, free from immediate direction or supervision in researching financial data and preparing
reports of findings to include recommendations to managers.
11. Supports the analysis of current financial information systems and helps establish operational
specifications and recommendations for future systems.
12. Provides direction and training to peers and act as lead for group projects.
13. Prepares memos and proposals for approval.
14. Develops spreadsheet models, prepares and conducts presentations to middle level managers and
external customers that affects business operations to a substantial degree
15. Collects, analyzes and organizes data in a manner that facilitates review by management.

6. 16. Failure to achieve results or report incorrect data or recommendations may cause delays in program
schedules and result in erroneous decisions by management that affects <Insert Company Name>
business operations to a substantial degree.
17. May provide work leadership for lower level employees; provides training to peers
18. Shares the responsibility of self-development with immediate supervisor.
19. Complies with company safety policies and maintain a safe work environment.
20. Performs special projects, as assigned.
KNOWLEDGE, SKILLS, AND ABILITIES REQUIRED
1. Bachelor’s degree in Finance, Accounting or Business Administration plus a minimum of 5 years of
experience in Finance; or a Master’s in Business Administration with 3 or more years of experience; or
an Associate degree in Finance, Accounting, or Business Administration with 8 years experience in
Accounting or Finance, 5 of which have been with UDLP.
1. Wide application of principles, theories, and concepts in the field plus working knowledge of other related
disciplines.
2. Good understanding of company’s cost and organizational structure, accounting structure, and
GAAP.
3. Good interpersonal skills in dealing with customers, suppliers, peers, middle and department
managers and senior level staff across the division.
4. Capable of training others in the use and construction of spreadsheet models and database
applications for financial analysis.
5. Ability to interface with auditors and prepare audit responses with some supervision.
6. Ability to represent the controller under normal/recurring circumstances.
7. Capable of influencing the organization in making sound financial decisions.
8. Ability to lead cross-functional teams.
9. Requires extensive knowledge of the job with complete memory of all job aspects.
10. High mental/visual application required to evaluate profit impact and perform complex financial
analyses.
WORKING CONDITIONS
PHYSICAL DEMANDS
While performing the duties of this job, the employee is occasionally required to stand; walk; sit; use
hands to finger, handle, or feel objects, tools or controls; reach with hands and arms; climb stairs;
balance; stoop; kneel; crouch or crawl; talk or hear. The employee must occasionally lift and/or
move up to 50 pounds. Specific vision abilities required by the job include close vision, distance
vision, peripheral vision, depth perception, and the ability to adjust focus. The work schedule for this
classification is full-time. Incumbents must work a full-time forty (40) hours per week schedule with
occasional overtime based on meeting schedules and deadlines.
WORK ENVIRONMENT
While performing the duties of this job, the employee is not normally exposed to normal indoor non-
air-conditioned temperatures and may on occasion work in seasonal outdoor weather conditions.
The noise level in the work environment is usually low to moderate where hearing protection is
necessary based on OSHA requirements. Work environment characteristics described here are
representative of those that must be met by an employee to successfully perform the essential
functions of this job. Reasonable accommodations may be made to enable individuals with
disabilities to perform the essential functions.
REPORTING RELATIONSHIP
Reports to: Controller of <Insert Company Name>
Approvals and Dates
President & CEO
President & CEO Signature Title Date
Vice President, Human Resources

7. VP Human Resources Signature Title Date
The above is intended to describe the general content of and requirements for the performance of this job. It is not to be
construed as an exhaustive statement of duties, responsibilities or requirements. The principal duties and
responsibilities enumerated are all essential job functions except those that begin with the word “May.”