Are you an “Executive” employee?

If you are properly classified as an “executive employee” then you are an exempt employee and your employer does have to pay you overtime. Not surprisingly, employers often call workers “executive employees” to avoid paying them overtime, even when the law does not permit them to do so. Are you properly classified as an executive employee? How do you find out?

The best way to find out is to contact us for a free consultation.

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Here is some more information:

In order to be exempt from overtime pay under the executive exemption, you must be paid a salary of at least $640/week (for full-time employment) and:

  1. Manage the entire company or a recognized department/subdivision, and
  2. Regularly direct the work of at least 2 or more subordinates in your department, and
  3. Have authority to hire or fire, and
  4. Exercise independent business judgment, and
  5. Spend more than 50% of your time doing 1-4.

As with most legal tests, this one has its exceptions that are too numerous to list here. Again, the employee must customarily and regularly exercise discretionary power and independent judgment.

As with any of the exemptions, having a fancy job title does not reflect actual job duties and therefore, is of no assistance in determining exempt or nonexempt status. The actual determination of exempt or nonexempt status must be based on the nature of the actual work performed by the employee.

Again, there are many exceptions. If you have any questions as to whether you are misclassified as an executive employee, contact us.

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