Employees of Public Agencies – FLSA Exemptions

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An employee of a public agency who otherwise meets the salary basis requirements is not disqualified from the executive, administrative, professional, or computer employee exemption even though the employee is paid according to a pay system established by statute, ordinance, regulation, or policy or practice established pursuant to principles of public accountability, in which the employee accrues personal leave and/or sick leave and has his or her pay reduced or is placed on a leave without pay for absences for personal reasons or because of illness or injury of less than one work-day when accrued leave is not used by an employee because:

  • the employee did not seek permission for its use or permission was denied;
  • the employee exhausted the accrued leave; or
  • the employee chose to use leave without pay.

An public agency employee is not disqualified from being paid on a salary basis if their pay is reduced due to budget-required furlough except in the workweek in which the furlough occurs and for which the employee’s pay is accordingly reduced.
29 CFR 541.710.

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