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Under the Fair Labor Standards Act (FLSA), employees must be paid a minimum hourly wage and an overtime premium of one and one-half times the regular rate of pay for hours worked in excess of forty per week. This is the one of a continuing series that discusses FLSA exemptions. The executive exemption allows employees who qualify as “executives” to be exempted from both minimum wage and overtime requirements. One of the tests to be met is that an executive must be able to make “suggestions and recommendation [that] are given ‘particular weight.’” Among other factors to be considered are, “whether it is part of the employee’s job duties to make such suggestions and recommendations; the frequency with which such suggestions and recommendations are made or requested; and the frequency with which the employee’s suggestions and recommendations are relied upon.” The “suggestions and recommendations” should pertain to employees whom the executive manages. Occasional suggestions about co-workers are not sufficient to meet this standard. The “suggestions and recommendations” need not be the ultimate deciding factor or even the most important determinative factor to qualify as being given “particular weight.” State laws may provide rules that are more beneficial to the employee and must be followed. Contact Vision Payroll if you have questions about the executive exemption.

According to the US Department of Labor, in the week ending August 16, the advance figure for seasonally adjusted initial claims was 432,000, an decrease of 13,000 from the previous week’s revised figure of 445,000. The 4-week moving average was 445,750, an increase of 7,250 from the previous week’s revised average of 438,500.

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Under the Fair Labor Standards Act (FLSA), employees must be paid a minimum hourly wage and an overtime premium of one and one-half times the regular rate of pay for hours worked in excess of forty per week. This is the one of a continuing series that discusses FLSA exemptions. The executive exemption allows employees who qualify as “executives” to be exempted from both minimum wage and overtime requirements. One of the tests to be met is that an executive must “customarily and regularly” direct the work of at least two other employees. The two or more employees test is an equivalency test. Four half-time employees are equal to two full-time employees. Supervision may be split among two or more employees, but each must supervise two or more full-time equivalents. A department with five non-exempt employees, for example, may not have more than two exempt supervisors under this test. Assistance in the actual manager’s absence is not sufficient to meet the requirements of this section. An employee’s work can only be credited to one supervisor; an employee who works eight hours can be credited four hours each to two different supervisors, but not eight hours to each supervisor. State laws may provide rules that are more beneficial to the employee and must be followed. Contact Vision Payroll if you have questions about the executive exemption.

Under the Fair Labor Standards Act (FLSA), employees must be paid a minimum hourly wage and an overtime premium of one and one-half times the regular rate of pay for hours worked in excess of forty per week. This is the one of a continuing series that discusses FLSA exemptions. The executive exemption allows employees who qualify as “executives” to be exempted from both minimum wage and overtime requirements. One of the tests to be met is that an executive must manage an enterprise or department or subdivision thereof. The department or subdivision must be permanent and continuing. The regulations explain that a “human resources department might have subdivisions for labor relations, pensions and other benefits, equal employment opportunity, and personnel management.” Enterprises with more than one establishment may consider each establishment a subdivision for this purpose. There is however, no physical presence test for a department or subdivision. Likewise, the fact that the employees that the executive manages may change from time-to-time is irrelevant. Neither the physical presence nor the static employee test is determinative; instead the facts and circumstances surrounding the employee’s management activities are what are critical to classifying the employee as an executive. State laws may provide rules that are more beneficial to the employee and must be followed. Contact Vision Payroll if you have questions about the executive exemption.

Under the Fair Labor Standards Act (FLSA), employees must be paid a minimum hourly wage and an overtime premium of one and one-half times the regular rate of pay for hours worked in excess of forty per week. This is the one of a continuing series that discusses FLSA exemptions. The executive exemption allows employees who qualify as “executives” to be exempted from both minimum wage and overtime requirements. Earlier posts discussed that to qualify for the executive exemption, employees must be involved in management. Management duties have been defined as “interviewing, selecting, and training of employees; setting and adjusting their rates of pay and hours of work; directing the work of employees; maintaining production or sales records for use in supervision or control; appraising employees’ productivity and efficiency for the purpose of recommending promotions or other changes in status; handling employee complaints and grievances; disciplining employees; planning the work; determining the techniques to be used; apportioning the work among the employees; determining the type of materials, supplies, machinery, equipment or tools to be used or merchandise to be bought, stocked and sold; controlling the flow and distribution of materials or merchandise and supplies; providing for the safety and security of the employees or the property; planning and controlling the budget; and monitoring or implementing legal compliance measures.” The regulations specifically state that other duties not listed above may also be included in the duties of management. State laws may provide rules that are more beneficial to the employee and must be followed. Contact Vision Payroll if you have questions about the executive exemption.

Under the Fair Labor Standards Act (FLSA), employees must be paid a minimum hourly wage and an overtime premium of one and one-half times the regular rate of pay for hours worked in excess of forty per week. This is the one of a continuing series that discusses FLSA exemptions. The executive exemption allows employees who qualify as “executives” to be exempted from both minimum wage and overtime requirements. An earlier post listed four tests that if met would qualify an employee as an executive. Alternatively, any employee who owns a twenty percent or more equity interest in his place of employment and is actively involved in its management will qualify for the executive exemption.

This week’s question comes from Donna, an office manager. An employee wants to change the number exemptions (withholding allowances) claimed. What should I do? Answer: Have the employee complete and sign Form W-4, Employee’s Withholding Allowance Certificate. Always use the current year version of the form. By completing the Personal Allowances Worksheet attached to the form, the employee can calculate the correct number of allowances to claim to minimize any balance due or interest-free loan to the government. Remember that withholding allowances rarely equal the number of exemptions claimed on a tax return. If an employee is claiming an exemption from withholding, a new Form W-4 must be filed every year by February 15. Once you receive the new W-4, be sure to update your payroll records online or contact Vision Payroll with the updated information.

Under the Fair Labor Standards Act (FLSA), employees must be paid a minimum hourly wage and an overtime premium of one and one-half times the regular rate of pay for hours worked in excess of forty per week. Unless exempt, all employees must receive a minimum wage and overtime premium. Paying an employee salary or giving an employee a certain job title does not automatically exempt an employee from the FLSA. Only statutorily enacted exemptions, as clarified by Department of Labor regulations, exempt an employee from minimum wage requirements, overtime requirements, or both. Even then, employer actions such as making improper deductions from salaried, exempt employees can result in the loss of exemption for that employee and others. This is the one of a continuing series that discusses FLSA exemptions. The executive exemption allows employees who qualify as “executives” to be exempted from both minimum wage and overtime requirements. Only employees “employed in a bona fide executive capacity” qualify for the exemption. Any employee who meets all the following tests shall be considered an “executive” for this purpose: 1) The employee must receive a salary of at least $455 per week, not including board, lodging, or other facilities. 2) The employee’s primary duty must be management of the enterprise (or a department or subdivision thereof) in which the employee is employed. 3) The employee must “customarily and regularly” direct the work of at least two other employees. 4) The employee must have the authority to hire and fire other employees or have the power to suggest and recommend which employees are hired, fired, advanced, promoted, or otherwise changed in status and such suggestions and recommendations must be “given particular weight.” Future posts will provide further clarification of certain terms in the executive exemption as well as provide other tests that may qualify an employee as an executive. State laws may provide rules that are more beneficial to the employee and must be followed. Contact Vision Payroll if you have questions about the executive exemption.

According to the US Department of Labor, in the week ending August 9, the advance figure for seasonally adjusted initial claims was 450,000, a decrease of 10,000 from the previous week’s revised figure of 460,000. The 4-week moving average was 440,500, an increase of 19,500 from the previous week’s revised average of 421,000.