FLSA Overtime Security Advisor
You indicated that:
- 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 $684 in gross earnings if paid weekly;
- The employee's primary duty is management of the entire business enterprise where he or she works or of a customarily recognized department or subdivision of the business;
- The employee customarily and regularly directs the work of two or more other full time employees or their equivalent; and
- The employee has the authority to hire or fire other employees.
Therefore, based on these responses, the employee appears to meet the duties tests for exemption as an executive employee. However, to qualify for exemption, additional tests must be met concerning the weekly guarantee of at least $684. You should also review the Compensation Requirements section to determine whether the employee's pay meets the criteria for exemption. 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.