What does Educational Establishment mean?
Under the Fair Labor Standards Act workers are guaranteed certain employment rights, specifically, the right to a national minimum wage and time and a half for overtime pay for certain jobs (for hours worked over the standard forty-hour work week).
Workers exempt from Overtime pay
Some workers, however, are considered “exempt” from overtime pay requirements. The most common exempt workers are those making at least $455/week ($23,660 annually) and working jobs as administrators, executives, or professionals or those engaged in outside sales or certain computer jobs.
Educational Establishment Employees and Exemptions
Another group of exempted employees are those who work in educational establishments who are in a bona fide administrative capacity, earning a wage rate of not less than $455 per week (or $380 per week, if employed in American Samoa by employers other than the Federal Government).
To be exempt the workers must have duties which are “directly related to academic instruction or training in an educational establishment or department.” What is an educational establishment? According to the Fair Labor and Standards Act the term educational establishment refers to an elementary or secondary school, educational institution, or an institution of higher learning. Other educational establishments may include schools for the mentally or physically disabled or schools for gifted children. The law does not make a distinction between public and private schools or schools operated for pay or profit.
Employers and overtime If you are employed in an educational establishment and you are not engaged in a bona fide administrative capacity you may be entitled to overtime pay. It is important to understand the wage laws and also whether or not you are receiving fair compensation for your work. It is not unusual for some employers to incorrectly categorize employees in an effort to avoid paying overtime pay. Talk to your employer or an employment lawyer if you have questions about your wage.