How to Determine if an Employee Qualifies for the Executive Exemption
Page Contents
- Step 1: Confirm That the Employee Performs Management Tasks
- Step 2: Ensure That Management Is the Employee's Primary Duty
- Step 3: Check That the Employee Manages the Business, a Department or a Subdivision
- Step 4: Be Sure That the Employee Regularly Directs the Work of at Least Two Full-Time Employees
- Step 5: Confirm That the Employee Has the Authority to Hire and Fire (or at Least Strongly Influence Hiring and Firing Decisions)
- Step 6: Check That the Employee Is Paid on a Salary Basis
- Step 7: Consult an Attorney or DOL if the Employee Does Not Clearly Satisfy All the Requirements
- Step 8: Fulfill Recordkeeping Requirements and Memorialize the Classification
- Additional Resources
Authors: Michael Cardman, XpertHR Legal Editor, and Allen S. Kinzer, Vorys, Sater, Seymour and Pease LLP
When most people think of an "executive," they probably think of somebody like a CEO, a president, or a regional manager of a large company. But within the context of the Fair Labor Standards Act (FLSA), several kinds of employees can be considered an "executive" as long as they meet certain criteria. For example, employees like convenience store managers, chefs and construction superintendents who might not otherwise be exempt can qualify as executives if they manage a business or a department and direct the work of at least two employees, among other things. Follow these steps to determine whether an employee qualifies for the executive exemption.