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The federal DOL overtime regulations go into effect this year. Are you ready?

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This report includes a summary of key changes, including the salary level test and salary basis test.

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May 04, 2010
Criteria Necessary for an Employee to Qualify for an Executive or Managerial Exemption

In a BLR webinar entitled "Exemption Audits: Prepare Now for Stepped-Up Department of Labor (DOL) Enforcement--Who's Entitled to Overtime and Who's Not," Cheryl D. Orr, Esq. partner and co-chair of the national Labor and Employment Practice Group at Drinker Biddle & Reath LLP described the criteria necessary for an employee to qualify for an Executive exemption (also known as a Managerial exemption).

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  • The employee's "Primary Duty" is to manage the enterprise or a department or subdivision of the enterprise. Primary duty may still be less than 50% depending on relative importance of exempt duties.
  • The employee customarily directs two or more Full Time Equivalents (FTEs).
  • The employee has the authority to hire and fire or "particular weight" is given to this person's recommendations.
  • The employee is regularly and customarily expected to and exercises discretion and independent judgment.

Cheryl D. Orr, Esq. is a partner and co-chair of the national Labor and Employment Practice Group at Drinker Biddle & Reath LLP. She concentrates her practice on defending employers against FLSA collective actions and state and federal wage and hour class actions. She regularly litigates discrimination, harassment, and unfair competition claims, conducts high-level workplace investigations, develops plans for reductions in force and offers employer advice and counseling.

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Top 100 FLSA Overtime Q&As
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