Overview: In the popular imagination, the word executive brings to mind images of a CEO or a company president, sitting in the corner office and overseeing hundreds or even thousands of employees. But under the Fair Labor Standards Act (FLSA), employees who supervise as few as two full-time employees can also qualify as executives. For this reason, a variety of employees one might not normally think of as executives - such as convenience store managers, chefs and construction superintendents - can qualify as executives and be exempt from the law's overtime requirements.
Besides directing the work of two or more employees, executives must also:
Trends: The US Department of Labor (DOL) is expected to issue new FLSA regulations that will raise the minimum salary for overtime-exempt executive employees.
Author: Michael Cardman, Legal Editor
Updated to reflect the 2019 annual inflation adjustment to the minimum salaries for overtime-exempt executive, administrative and professional employees, effective January 1, 2019.
Updated to reflect adjustments to the minimum salaries for executive employees, administrative employees and professional employees, and to the minimum pay for computer professionals and physicians and surgeons paid an hourly rate, effective January 1, 2019.
Updated to reflect the 2019 increase in the minimum salary for overtime-exempt executive / supervisory employees, effective January 1, 2019.
Updated to reflect the 2019 increase in the minimum salary for overtime-exempt executive, administrative and professional employees, effective January 1, 2019.
Updated to reflect the increase in the minimum salaries for overtime-exempt executive and administrative employees, effective December 31, 2018.
An independent commission has raised a number of concerns that the Pennsylvania labor department must address before raising the minimum salary for most overtime-exempt employees to nearly $48,000.
Updated to reflect recent developments concerning proposed rules that would increase the minimum salary and update the duties tests for most overtime-exempt workers.
Updated to reflect a Supreme Court ruling concerning an overtime exemption for auto dealership service advisors.
Updated to reflect the overtime and recordkeeping exemption for employees of seasonal amusement and recreational establishments, effective January 1, 2018.
Updated to reflect the repeal of the overtime exemption for parking lot and garage attendants under the Wage Theft Prevention Clarification and Overtime Fairness Amendment Act of 2016, effective April 7, 2017.
HR guidance on complying with the federal and state requirements for the executive exemption.