And How Do You Know if You’re an “Executive”?
Under the Fair Labor Standards Act (FLSA), most US employees must be paid at least a minimum wage and overtime pay for all hours worked beyond 40 in a workweek. However, there are a number of exemptions that leave many employees without FLSA protections. One of those is the “executive exception.”
The executive exception is intended for executives who have a leadership role in companies. However, employers sometimes misclassify employees under the executive exemption when they do not actually meet the requirements.
When that happens, the employee may be able to gain restitution in court—including back overtime pay.
What Qualifies You for the Executive Exemption?
To qualify for this exception, you must meet all of the following requirements:
• You must earn a salary (not an hourly wage) of at least $684 per week.
• Your primary job duties must involve leading and managing the company or a recognized department or subdivision of that company.
• You must regularly oversee and direct the work of two or more full-time employees or the equivalent.
• You must have the authority to hire and fire other employees—or your opinions with regard to hiring and firing decisions must hold significant weight.
What Does “Management” Mean in This Context?
To qualify for the executive exemption, your job has to meet the description. But some of the requirements for job duties sound rather vague. For instance, what does it mean to “manage the company...
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