Is an Account Manager typically an exempt or non-exempt employee?

Whether or not an Account Manager qualifies for exemption will depend on their salary and primary role with your company. When determining if an employee is exempt or non-exempt under the Fair Labor Standards Act, you need to look at three things: Their compensation The type of work the employee does Their specific duties You […]

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Whether or not an Account Manager qualifies for exemption will depend on their salary and primary role with your company. When determining if an employee is exempt or non-exempt under the Fair Labor Standards Act, you need to look at three things:

  • Their compensation
  • The type of work the employee does
  • Their specific duties

You will also need to determine which category your employee falls under as there are several classifications of exempt employees:

  • Executive
  • Administrative
  • Professional
  • Computer Professional
  • Outside Sales

Based on a general job description for an Account Manager, this position often includes administrative duties, such as the management of customers’ accounts and exercising their independent judgment to complete significant tasks. However, some Account Managers may lean more towards an Outside Sales exemption if they primarily focus on obtaining orders or contracts for the company’s services.

You will want to make sure you review your employee’s responsibilities carefully when determining their exemption status. If your employee meets some requirements under multiple categories but does not fulfill all of the criteria under at least one, they may not qualify as exempt.

State Laws

In addition to the federal laws, you will also want to make sure you check your state’s laws as they can sometimes be more rigorous. For instance, California has their own regulations surrounding the classification of an Administrative Employee exemption, and this is more detailed than the federal law.

Final Tip

Determining whether or not your Account Manager qualifies as exempt should be looked at on a case by case basis, and the employee needs to fulfill all necessary criteria within their exemption category in order to be classified as exempt.

Helpful Links:

Exempt vs. non-exempt – Zenefits

Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the Fair Labor Standards Act – DOL.gov

Analysis of a Case Where Account Managers Were Found Exempt – Littler

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