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Saturday, April 18, 2026

Review Your Exempt Employees: Manager and Supervisor Pay - CPAPracticeAdvisor.com

An increase in the salary threshold is virtually certain, even if delayed by court action. Here are some issues that proactive employers should be...

The Fair Labor Standards Act (FLSA) is the federal law governing employee compensation in U.S. workplaces. Some states also apply their own, more rigorous wage and hour laws. The FLSA requires employers to pay employees a minimum wage for all hours worked and a time-and-a-half overtime rate for all hours worked over 40 in a workweek.

However, the FLSA provides certain exemptions from the minimum wage and overtime requirements. The so-called “white collar” exemptions to the minimum wage and overtime requirements refer to the executive, administrative, professional, computer, and outside sales exemptions. To qualify for one of these exemptions, employees must receive a predetermined salary not subject to reduction based on the number of hours worked or the quality of work and the salary must meet the minimum “threshold” prescribed under the FLSA, currently $684 per week or $35,568 annually. In addition, employees must satisfy duties tests set out by the FLSA to fit into one of the exemptions.

To qualify for the executive exemption, which covers most managers and supervisors, an employee’s primary duty must be management of the enterprise or a recognized subdivision or department thereof. The fundamental requirement is that the employee must regularly direct the work of two or more subordinate employees.

  • The administrative...


Read Full Story: https://www.cpapracticeadvisor.com/2022/09/12/review-your-exempt-employees-ma...