How to Determine if an Employee Qualifies for the Executive Exemption
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.
Note: The US Department of Labor (DOL) has proposed regulations that would, if implemented, raise the minimum salary for exempt executive employees to an estimated $970 per week, or $50,440 per year, starting in 2016. This minimum salary level would then be adjusted annually. See Employee Classification > Future Developments.