Under the Fair Labor Standards Act (FLSA), employees must be paid a minimum hourly wage and an overtime premium of one and one-half times the regular rate of pay for hours worked in excess of forty per week. This is the one of a continuing series that discusses FLSA exemptions. The executive exemption allows employees who qualify as “executives” to be exempted from both minimum wage and overtime requirements. The fact that employee may perform both exempt and non-exempt duties does not necessarily disqualify the employee from executive classification under the FLSA. The determining factor is generally whether the employee directs other non-exempt employees and remains “responsible for the success or failure of business operations” or is merely directed by another to perform the exempt function or performs it for a certain period. “An employee whose primary duty is ordinary production work or routine, recurrent or repetitive tasks cannot qualify for exemption as an executive.” Generally, the ultimate deciding factor, based on the facts and circumstances of each case, is whether or not the employee’s primary duty is management. State laws may provide rules that are more beneficial to the employee and must be followed. Contact Vision Payroll if you have questions about the executive exemption.
August 23, 2008
Concurrent Duties Under the Fair Labor Standards Act
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