With the passage of the Fair Labor Standards Act, some of the most fundamental workers’ rights became legally enforceable for many workers. As the law became more widely recognized as an important step in the workers’ rights movements for all career fields, more sections of the workforce became protected in terms of minimum wage, maximum work week, and overtime pay. However, certain job descriptions still permit workers to be exempt from these laws. In particular, executives are not covered by the overtime requirements of FLSA regulations.
The Fair Labor Standards Act describes some of the qualifications that must be met in order for an individual to be exempt from overtime pay because of his or her role as an executive. The most standard and obvious of these is the pay limit, which is required for most exemptions under this law. If a worker does not receive weekly compensation of at least $455 for their work, they cannot be considered for this exemption.
The major part of the executive exemption is that a person must actually regularly do tasks that are tied to the duties of an executive. Specifically, these individuals must be a part of basic operation management over a significant portion of a company, meaning that they must oversee personnel in terms of employment and job assignment. If this task is not regularly under the supervision of a particular employee, then the exemption is not applicable to them.
Finally, a basic hierarchy must be in place that locates an individual significantly above others. This is documented as being above two full-time employees, but may be divided between part-time employees as well. Individuals who fit into the exemption provided for executives must fit into the role of a higher management figure, meaning that they must have someone to manage.