Retail bosses needn’t be present to win executive exemption

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in Leaders & Managers,Management Training

In an important opinion letter issued recently, the U.S. Labor Department said store managers can retain their executive-exemption status (i.e., ineligible for overtime pay) even if they don’t physically supervise employees under their control on a regular basis. (That’s often the case when managers don’t work the same shift as employees they oversee.)

Typically, employees qualify for the executive exemption if they earn at least $455 a week, have the primary duty of management, regularly direct the work of at least two employees and have the authority to hire and fire. (Opinion Letter FLSA 2006-35)  

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