Executive Employee Exemption
Dolley Law, LLC handles claims and questions involving the executive employee exemption from the pay requirements of the Fair Labor Standards Act (“FLSA”). Section 213(a)(1) of the FLSA states that any “employee employed in a bona fide executive…capacity” is exempt from its pay requirements. Our attorneys are familiar with the nature and scope of this exemption and can help advise you regarding the same.
Who is an “employee employed in a bona fide executive…capacity”?
The executive employee exemption is described in detail by regulations promulgated by the United States Department of Labor (“DOL”). See 29 C.F.R. § 541.100, et seq. To qualify as an executive employee under the FLSA, the employee must:
- Be compensated on a salary basis at a rate of not less than $684 per week;
- Have the primary duty of management of the enterprise in which the employee is employed or of a customarily recognized department or subdivision thereof;
- Customarily and regularly direct the work of two or more other employees; and
- Have the authority to hire or fire other employees or have suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees that are given particular weight.
29 C.F.R. § 541.100. The DOL regulations further elaborate on the meaning of terms used within these requirements, such as “management,” “customarily recognized department or subdivision,” “two or more employees,” and “particular weight,” as well as related terms such as “business owner.” See 29 C.F.R. §§ 541.101 – 541.106.
If you have further questions or concerns regarding the executive employee exemption, contact Dolley Law, LLC by phone at (314) 645-4100 or by email at firstname.lastname@example.org.