Raj wanted to promote a hard-working administrative assistant, Anne, to an administrative management position. When Raj talked to his boss, Don, about this, Don said, "Raj, this might be tricky. Make sure that you carefully and thoroughly discuss this with the human resources department. Right now, Anne is an hourly employee, and she earns time-and-a-half pay for overtime. Promotion of Anne to a management position may place her in a labor category that is exempt from overtime pay requirements under the ________. We have to make sure that we are not in violation of the law and that Anne is completely aware and supportive of the change in status."

Question

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The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. One of the key features of the FLSA is the requirement that covered nonexempt employees be paid overtime pay at a rate of not less than one and one-half times their regular rates of pay for hours worked over 40 in a workweek. However, certain employees may be classified as exempt from this requirement, such as administrative employees who meet certain criteria. It is important to ensure that Anne's promotion does not violate the FLSA by misclassifying her status and withholding overtime pay if she is still entitled to it.

Raj Wanted to Promote a Hard-Working Administrative Assistant, Anne, to an Administrative