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Store managers can meet executive exemption without constant on-Site supervising of staff

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in Leaders & Managers,Management Training

The U.S. Labor Department issued an important opinion letter recently that clarifies the criteria that store managers must meet to qualify for the executive exemption under the Fair Labor Standards Act (FLSA). (Opinion Letter FLSA 2006-35)

Essentially, the government said that store managers can retain their exempt 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. 

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