- FLSA Overtime Security Advisor
You indicated that the employee owns a bona fide 20 percent or more equity interest in the business in which the employee is employed and is actively engaged in the management of the business. Therefore, the employee appears to meet the tests for exemption as a business owner executive employee. An employee who does not meet all of the tests for exemption is entitled to the minimum wage and overtime pay protections of the Fair Labor Standards Act (FLSA).
If you have further questions about your situation, you may want to review Fact Sheet 17B: Exemption for Executive Employees Under the FLSA or contact your local Wage and Hour Division office.