INDUSTRY IMPACTS exposures based on the insurance products your agency provides ? Or is that a process your producers perform ? Do CSRs present quotes and proposals directly to clients , or is that a producer ’ s job duty ? If the CSR is providing a quote or proposal , do they typically get approval from somebody else in the agency or do they use their own discretion and judgment in determining what to present to your clients ? These are just some of the questions you should ask when determining whether your CSRs would fall under the administrative exemption of the overtime rules in the FLSA . For additional details regarding the Administrative exemption , please visit https :// www . dol . gov / agencies / whd / fact-sheets / 17covertime-administrative
PROFESSIONAL EXEMPTIONS
Third , let ’ s look at the Professional exemption . The professional exemption category is even more complex because it has two sub-categories ; Learned Professional and Creative Professional . Much like the previous two categories , in order to qualify under either sub-category of this exemption , all of the tests must be met .
The Learned Professional exemption requires the following :
1 . Salary must meet or exceed the limits outlined earlier ;
2 . Employee ’ s primary duties are work that requires advanced knowledge , which the DOL defines as work that primarily intellectual in character and requires the consistent exercise of discretion and judgment ;
3 . The advanced knowledge is in the field of science or learning ; and
4 . The advanced knowledge must be regularly acquired by an extended course of specialized intellectual instruction .
The Creative Professional exemption requires the following :
1 . Salary must meet or exceed the limits outlined earlier ;
2 . The employee ’ s primary job duty is the performance of work requiring imagination , invention , originality , or talent in a recognized field of artistic or creative endeavor .
It is unlikely many agencies have employees that will fall under either of the sub-categories in the professional exemption . Not impossible , but unlikely ! Large agencies may have an attorney on staff or an accountant and both of those positions may qualify under the learned professional exemption . This particular category usually includes lawyers , certified public accountants , and actuaries . Other non-insurance fields that may qualify are in the fields of medicine , engineering , architecture , teaching , various types of sciences , and theology . This list is by no means exhaustive , but rather is meant to give you an overview . Again , you can find more details regarding the Professional exemption at https :// www . dol . gov / agencies / whd / fact-sheets / 17d-overtimeprofessional
OUTSIDE SALES EXEMPTION
Next we ’ ll review the Outside Sales exemption . To qualify for this exemption , the following tests must be met :
1 . The employee ’ s primary duty is making sales or obtaining orders / contracts for services or for the use of facilities for which money or other consideration will be paid by the customer or client ; and
2 . The employee is regularly and consistently engaged out of the office , i . e ., not in the agency ’ s office .
Did you notice what is missing from the tests to meet the Outside Sales exemption ? Bonus points if you recognized the Outside Sales exemption does not have the salary threshold the first three categories required . Some or maybe even many of your producers may qualify under the Outside
JULY / AUGUST 2024
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