Slide 1

Review

•Duties requirements for executive exemption:

Primary duty of management;

Customarily and regularly directs the work of two or more other employees; and

Authority to hire or fire or having suggestions and recommendations as to hiring, firing, advancement promotion or any other change of status to other employees be given particular weight.

•The executive exemption also applies to 20% owners who are actively engaged in management.

I want to end this section with a brief review of the executive duties requirements. The executive exemption is available only if, in addition to meeting the salary requirements, the employee’s primary duty is management; the employee customarily and regularly directs the work of two or more employees; and the employee has the authority to hire or fire other employees, or has her recommendations be given particular weight. In addition, the executive exemption also applies to bona fide 20-percent equity owners who are actively engaged in management of the business.