Section 62 Executive Employees
Library | Employer-Employee Law 2008 |
“[E]xecutive” employees are exempt from the FLSA. 29 C.F.R. § 541.100. Under the standard test, an executive employee is one:
- who is compensated on a salary basis (not hourly) at a rate of at least $455 per week
- with a primary duty of the management of the enterprise in which the employee is employed
- “[w]ho customarily and regularly directs the work of two or more other employees; and”
- who has the authority to hire or fire other employees or whose suggestions regarding such status changes are given weight
Examples of work that is considered “management” for purposes of this exemption include:
- interviewing, selecting, and training of employees
- setting and adjusting their rates of pay and hours of work;
- directing the work of employees;
- maintaining production or sales records for use in supervision or control;
- appraising employees’ productivity and efficiency for the purpose of recommending promotions or other changes in status;
- handling employee complaints and grievances;
- disciplining employees;
- planning the work;
- determining the techniques to be used;
- apportioning the work among the employees;
- determining the type of materials, supplies, machinery, equipment or tools to be used or...
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