Section 62 Executive Employees

LibraryEmployer-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

29 C.F.R. § 541.100.

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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