Duties Test for Exempt Employees

 

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Executive: an executive exempt employee has true executive authority, i.e., the authority to hire, fire, promote, set policy, and supervises two or more employees in managing an enterprise or subdivision of the enterprise - examples given in the regulations include the president of a company or the head of a major division of an enterprise - also, a department head with hiring and firing authority can qualify - if the employee has no hiring or firing authority, but is highly influential in such decisions, the executive exemption can still apply

 

Administrative: performs specialized or technical office or non-manual work related to management policies or general business operations of an enterprise - the decisions such an employee makes are of substantial importance to the company as a whole - their work supports the organization, not individual customers - has a great deal of discretion and independent judgment in day-to-day duties - examples given in the regulations include personnel director, vice president of operations, head buyer, head dispatcher, and department head

 

Professional: performs original and creative work or work requiring advanced knowledge normally acquired through a prolonged course of specialized academic study; a professional exempt employee's work cannot be standardized with respect to time - examples given in the regulations include physician, attorney, CPA, engineer, architect, scientist (geologist, botanist, physicist, zoologist, chemist, etc.), registered nurse, and teacher at any educational institution

 

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