Re: Employee classification

From: Cara Levinson
Email: CaraBLevinson@aol.com
Date: February 07, 2005

Comments

Hi, Paula. To determine if an employee is exempt (from overtime), both a salary basis test and a duties test must be performed. The salary basis test for exempt status is met if the employee is paid at least $455 per week ($23,660 per annum) that is not subject to reduction to to variations in quantity/quality of work performed. If the salary basis test is met, then you need to determine which exemption applies. There are five: (1) executive; (2) administrative; (3) professional/creative; (4) computer professional; and (5) outside salesperson. From your brief description, it sounds as if your position would fit within the executive exemption. Basically an "executive" under the Fair Labor Standards Act is an employee whose primary duty is to manage the business or a recognized department/entity and who customarily directs the work of two or more employees. It also includes individuals who hire, fire, or make recommendations that carry particular weight regarding employment status. Although a title is never determinative of exempt/non-exempt status, typical "executive"-type positions include: executive, director, manager, supervisor.