Before beginning the analysis of whether the employee meets the duties tests
for exemption as an executive, please review the following important definitions:
- Primary duty means the principal, main, major or most important duty that the
employee performs. The determination of an employee's primary duty must be based
on all of the facts in a particular case, with the major emphasis on the character
of the employee's job as a whole. While time is not the sole test, as a guideline,
an employee who spends more than 50 percent of his or her time performing a specific
activity can generally be said to have that specific activity as his or her
primary duty. If the employee spends less than 50 percent of his or her time performing
his or her major or most important duty, the employee may still meet the primary duty
requirement if other factors support that conclusion. Please review the definition of
primary duty for further information
regarding this requirement.
- Management generally includes activities such as:
supervising other employees of the employer; interviewing,
selecting and training employees; setting and adjusting their pay rates and work
hours; directing their work; conducting employee performance appraisals; handling
employee complaints and grievances; and disciplining employees. It also includes
other functions, such as planning the work; determining the merchandise to be
bought, stocked and sold; planning and controlling the budget; and monitoring or
implementing legal compliance measures.
- Recognized department or subdivision refers to a unit of the business
enterprise that has a permanent status and a continuing function as opposed
to a mere collection of employees assigned from time to time to a specific
job or series of jobs without permanent status as a recognized unit with a continuing
function in the employer's organization. Please review the definition of
enterprise or recognized subdivision
for further information regarding this requirement.
Does the employee's primary duty involve management, as described above,
of the entire business enterprise where he or she works or of a customarily
recognized department or subdivision of the business?