- FLSA Overtime Security Advisor
The information in this Advisor does not yet reflect the Overtime Final Rule that became effective 12/1/2016. DOL's Wage and Hour Division is working on updating the content of this Advisor. Please check back periodically as we hope to have this Advisor updated shortly. If you have questions regarding this Advisor, please contact the Wage and Hour Division or find the office nearest you.
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.