Mass-Peculiarities: An Employers Guide to Wage & Hour Law in the Bay State 2022 Edition

102 | Massachusetts Wage & Hour Peculiarities, 2022 ed. © 2022 Seyfarth Shaw LLP The exercise of discretion and independent judgment requires more than the use of skill in applying well established techniques, procedures, or standards described in sources such as manuals. 560 The regulations specify that this requirement precludes the following types of work from qualifying for the administrative exemption: clerical or secretarial work; recording or tabulating data, even if the employee’s position is labeled “statistician;” and performing other mechanical, repetitive, recurrent, or routine work. 561 (3) Matters of Significance The administrative exemption requires that an employee exercise judgment with respect to “matters of significance.” The term “matters of significance” refers to the level of importance or consequence of the work performed. 562 An employee does not exercise discretion and independent judgment with respect to matters of significance merely because the employer will experience financial losses if the employee fails to perform the job properly. 563 For example, a messenger entrusted with carrying large sums of money does not exercise discretion and independent judgment with respect to matters of significance even though serious consequences may occur if the employee is neglectful in performing his or her duties. 564 Similarly, an employee who operates very expensive equipment does not meet this requirement simply because improper performance of his or her duties may cause significant financial loss to the employer. 565 Conversely, one court found that employees of a nightclub operator, who were charged with ensuring that their employer’s venues were properly maintained and who managed relationships with liquor vendors, exercised independent judgment in matters of significance. 566 In addition, employees with authority to make recommendations as to the pricing and structure of contracts for lease of medical devices were found to exercise independent judgment in matters of significance. 567 (4) Examples of Positions That Qualify for the Administrative Exemption The regulations provide several specific examples of positions that generally qualify for the administrative exemption, including the following: • Insurance claims adjusters, if their duties include activities such as interviewing clients, witnesses, and physicians; inspecting property damage; reviewing factual information to prepare damage estimates; evaluating and making recommendations 560 29 C.F.R. § 541.202(e); 29 C.F.R. § 541.704. 561 29 C.F.R. § 541.202(e); 29 C.F.R. § 541.704. 562 29 C.F.R. § 541.202(f). 563 Id . 564 Id. 565 Id . 566 See McKee v. CBF Corp. , 299 F. App’x 426, 2008 WL 4910671 (5th Cir. 2008). 567 See Reich v. Haemonetics Corp. , 907 F. Supp. 512, 517 (D. Mass. 1995).