An Administrator's Guide to California Private School Law

Chapter 6 – Wage And Hour Laws

2. A DMINISTRATIVE E XEMPTION The administrative exemption is the most difficult exemption to analyze because the test for the exemption is vague and confusing. Additionally, the mere title of “administrative” has little bearing on whether the employee qualifies for the exemption. A person employed in an administrative capacity means any employee who customarily and regularly exercises independent judgment and discretion, and whose duties satisfy each of the following tests: a. First, The Duties Must Either Involve  The performance of office or non-manual work directly related to management policies or general business operations of his or her school, or  The performance of functions in the administration of a school system, or educational establishment or institution, or of a department or subdivision thereof, in work directly related to the academic instruction or training carried on therein;

b. Second, The Employee Must:

 regularly and directly assists a proprietor, or an employee employed in a bona fide executive or administrative capacity, or  perform, under only general supervision, work along specialized or technical lines requiring special training, experience, or knowledge, or  execute, under only general supervision, special assignments and tasks. 535

c. Related To Management Policies Or General Business Operations Typically, “work 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; 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; and similar activities.” 536 The federal interpretive regulations explicitly exclude “production” type work from the definition of “work directly related to management policies or general business operations.” 537 Thus, the exemption is limited to employees who perform work of substantial importance to the management or operation of the school. The administrative operations of the business include the work performed by so-called white collar employees engaged in “servicing” a school, such as, for example, tax, finance, accounting, budgeting, insurance, purchasing, procurement, marketing, personnel management, employee benefits, human resources, labor relations, public relations, and internet and database administration. 538

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 158