Executive Employees

The FLSA contains an exemption from the payment of both minimum wage and overtime pay to any employee employed as a bona fide executive employee, as that term is defined by the Regulations, Part 541. To qualify for exemption as an executive, the employee must meet three tests:

• The employee must earn a minimum amount,
• The minimum amount must be paid on a salary basis and
• The employee must perform specific job duties.

Please select the statement that best describes how the employee is paid:

• The employee receives the same amount of pay for each week as a guaranteed salary, regardless of the number of hours or days worked. This amount would yield at least $455 in gross earnings if paid weekly.

• The employee owns a bona fide 20 percent (or more) equity interest in the business in which he or she is employed.

• The employee's annual compensation is at least $100,000 which includes a weekly guarantee of at least $455 paid on a salary basis.

• None of the above.