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March 04, 2010
Attorney Explains the Executive Exemption to Overtime Laws

As part of her exploration of the various exemptions to overtime law, employment attorney Olivia Goodkin detailed the four factors which determine whether an employee qualifies for an executive exemption in her BLR webinar “Job Descriptions: How to Tackle Tricky Drafting Hurdles to Maximize Compliance and Effectiveness.” To qualify for the exemption:

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  • The employee’s primary duty must be managing the enterprise, or managing a customarily recognized department or subdivision of the enterprise.
  • The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent.
  • The employee must have the authority to hire or fire other employees, or the employee’s suggestions and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees must be given particular weight.
  • The employee must be paid on a salary basis at not less than $455 per week.

Olivia Goodkin, Esq. is a partner in the Los Angeles office of Rutter Hobbs & Davidoff where she specializes in liability avoidance and employment-related litigation. She can be reached via email at mogoodkin@rutterhobbs.com.

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