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Executive Exemption of the Fair Labor Standards Act and North Carolina Wage and Hour Act


The Fair Labor Standards Act and North Carolina’s Wage and Hour Act requires overtime to paid for any hours worked over 40 per week. There are, however, exemptions to these general rules. One of those exemptions are for Executive employees. The executive exemption covers those employees normally thought of as managers. If you believe you are being improperly classified as a manager in an effort to deny you overtime, contact attorney Karl S. Gwaltney at 919.960.1545.The general rule of the executive exemption states that the employees are exempt from the provisions of the FLSA and NCWAHA if that employee is (a) compensated on a salary basis making more than $455 per week, (b) has primary duties managing an enterprise, (c) customarily and regularly directs the work of two or more other employees, (d) has the authority to hire or fire other employees.

The factor requiring “management of the enterprise,” requires that the supervisory tasks performed are not directed by higher management to such a significant degree that it negates the employee’s actual authority. Tasks commonly associated with management includes training employees, managing production or sales records, evaluating employees’ performance, disciplining employees, planning work to be done, safety of any plants, planning the budget, controlling supply flow, and monitoring or implementing legal compliance measures.

The factor requiring “customarily and regularly directs” the work of two or more employees factor requires direction of the equivalent of two full-time employees. The determination of an employee’s authority to make status changes generally comes down to a factual finding of whether they actually possess authority to hire, fire, or direct the hiring or firing of other employees. Even if higher management can overrule the employee, if an employer “seriously considers the recommendations,” that may be enough.

Many employers wrongfully deny overtime to employees under this exemption. If your employer denies overtime by claiming you are a “manager” contact Karl S. Gwaltney at Maginnis Law, PLLC for a free consultation regarding your rights or submit a confidential new case inquiry here. Karl S. Gwaltney is an attorney at Maginnis Law, PLLC handling employment cases dealing with unpaid wages and overtime throughout Wake County, Cary, Apex, Durham, Vance County, and Henderson. The firm takes certain wage and hour/overtime cases throughout North Carolina, particularly when groups of workers are involved. Contact the firm to discuss your overtime claim today.

 

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