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FLSA2005-9
January 7, 2005
Dear Name*,
This is in response to your letter to Secretary Chao concerning the application of the professional
exemption under Section 13(a)(1) of the Fair Labor Standards Act (FLSA) to paralegals. Please note that the Department of Labor issued revisions to 29 CFR
Part 541, effective August 23, 2004(copy enclosed). The updated Part 541 regulations apply prospectively, beginning on August 23, 2004. Our response is applicable under the updated version of the regulations that clarify and make no substantive changes in the primary duty test requirements
for the professional exemption.
You state that your employer has recently reclassified your position as a paralegal to a nonexempt status. You
possess a four-year degree from an accredited university, a paralegal certificate, and have taken continuing legal education courses in your
twenty-two years of service as a paralegal. You also indicate that you satisfy the salary basis requirements under the revised regulations.
With respect to the professional exemption, as discussed in 29 CFR 541.300 of the regulations, the
term “employee employed in a bona fide professional capacity” in Section
13(a)(1) of the FLSA shall mean any employee:
- compensated on a salary or fee basis at a rate of at least $455 per week;
- whose primary duty is the performance of work requiring knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction; or
- requiring invention, imagination, originality or talent in a recognized field of artistic or creative
endeavor.
The primary duty test under the learned professional exemption at § 541.301 includes three elements: (1)
the employee must perform work requiring advanced knowledge; (2) the advanced
knowledge must be in a field of science or learning; and (3) the advanced
knowledge must be customarily acquired by a prolonged course of specialized
intellectual instruction. The phrase “work requiring advanced knowledge” means
work which is predominantly intellectual in character, and which includes work
requiring the consistent exercise of discretion and judgment, as distinguished
from performance of routine mental, manual, mechanical or physical work. The
phrase “customarily acquired by a prolonged course of specialized intellectual
instruction” restricts the exemption to professions where specialized academic
training is a standard prerequisite for entrance into the profession. The best
prima facie evidence that an employee meets this requirement is possession of
the appropriate academic degree.
As the regulation provides in § 541.301(e)(7), “[p]aralegals and legal assistants generally do not qualify
as exempt learned professionals because an advanced specialized academic degree
is not a standard prerequisite for entry into the field. Although many
paralegals possess general four-year advanced degrees, most specialized
paralegal programs are two-year associate degree programs from a community
college or equivalent institution. However, the learned professional exemption
is available for paralegals who possess advanced specialized degrees in other
professional fields and apply advanced knowledge in that field in the
performance of their duties. For example, if a law firm hires an engineer as a
paralegal to provide expert advice on product liability cases or to assist on
patent matters, that engineer would qualify for exemption.” Therefore, unless
you possess an advanced specialized degree in another professional field, that
degree is a standard prerequisite for entry into that field, and you apply
advanced knowledge in that field in the performance of your paralegal duties,
your position as a paralegal cannot qualify for the professional exemption
under the updated regulations implementing Section 13(a)(1) that became
effective on August 23, 2004. Hence, your position as a paralegal is covered by
the overtime and minimum wage provisions of the FLSA.
As the preamble to the final rule noted at 69 FR 22154-55, the Department received numerous comments during
the notice and comment period urging the Department to declare that paralegals
are exempt learned professionals. However, “none of these commenters provided
any information to demonstrate that the educational requirement for paralegals
is greater than a two-year associate degree from a community college or
equivalent institution.” Id. at 22154. Furthermore,
there was “no evidence in the record that a four-year specialized paralegal
degree is a standard prerequisite for entry into the occupation.” The final
rule, thus, reaffirms the longstanding position of the Department that
paralegals and legal assistants do not qualify for the learned professional
exemption.
We trust that this information is responsive to your inquiry. If you require further assistance,
please feel free to visit our FairPay website at www.wagehour.dol.gov or contact our
local district office located at 1321 Murfreesboro Road, Suite 511, Nashville, TN 37217, tel.(615) 781-5344, fax. (615) 781-5347.
Sincerely,
Alfred B. Robinson, Jr.
Acting Administrator
Enclosure
Note: * The actual name(s) was removed to preserve privacy.
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