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What is a "Bona Fide Executive" Under Overtime Law?

To be considered FLSA exempt as a bona fide executive employee, the following must be true:

• Your primary duty must be managing the enterprise or a recognized department or subdivision.
  
• You must customarily and regularly direct the work of at least two or more other full-time employees.
• You must have the authority to hire or fire other employees. If you do not have direct hiring authority they may still be exempt if their recommendations are given particular weight in the hiring or firing process.
  

Examples include “C-suite” executives as well as general managers. Just because the word “manager” appears in the title does not mean the employee is exempt. You must actually have the authority described in the FLSA. If you spend most of their time doing other non-exempt duties you may lose the executive status under the law.


Learn more here about overtime exemptions under Massachusetts and federal law.

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