The Executive Exemption

Is a Manager Exempt From Overtime? The Executive Exemption

Only if the job really is management. Under 29 C.F.R. § 541.100, a manager is exempt only if paid a salary of at least $684 a week, whose primary duty is managing the business or a recognized department, who customarily and regularly directs at least two full-time employees, and whose hiring and firing input carries real weight. Miss one and the exemption fails.

The executive exemption is one of the white-collar exemptions. When it does not fit, employers usually reach for the administrative exemption or the learned professional exemption instead.

The Three Tests (The Employer Must Prove All Three)

The Four-Part Test, and Where Employers Get It Wrong

DOL Fact Sheet #17B lists the same four elements. The employer has to prove every one of them.

What Counts as “Management”

Management “includes, but is not limited to, activities such as interviewing, selecting, and training of employees,” along with setting pay and hours, disciplining, planning the work and controlling the budget. 29 C.F.R. § 541.102. The question is whether that is your main job or something you do now and then. Spending more than 50 percent of your time on exempt work generally meets the primary-duty requirement, though time alone is not decisive. 29 C.F.R. § 541.700(b).

Two Full-Time Employees, Customarily and Regularly

You must direct “two full-time employees or their equivalent.” 29 C.F.R. § 541.104(a). One full-time and two half-time employees count. One assistant does not. Neither does training a new hire or being the “go-to” person on a team. The direction has to be part of the job week in and week out.

“Particular Weight” on Hiring and Firing

If you cannot hire or fire, your recommendations must carry “particular weight,” which “does not include an occasional suggestion with regard to the change in status of a co-worker.” 29 C.F.R. § 541.105. Sitting in on an interview is not enough.

Working Supervisors and Assistant Managers

The working supervisor. An employee whose primary duty is “ordinary production work or routine, recurrent or repetitive tasks cannot qualify for exemption as an executive.” 29 C.F.R. § 541.106(a). And “a relief supervisor or working supervisor whose primary duty is performing nonexempt work” does not become exempt by directing others “when, for example, the exempt supervisor is unavailable.” 29 C.F.R. § 541.106(c). A lead who covers for the boss is still a worker.

The assistant manager. An assistant manager who also serves customers can be exempt if management is the primary duty. 29 C.F.R. § 541.106(b). But one who works the floor nearly all day, has no hiring say, and supervises only when the manager is gone points the other way.

“Case Manager” and “Care Manager” Are Not Management Titles

A case manager manages cases: clients, files and service plans. A care manager manages a member’s care. Neither usually directs two full-time employees or has a say in hiring. The title does not help the employer: “A job title alone is insufficient to establish the exempt status of an employee.” 29 C.F.R. § 541.2.

When the executive exemption fails, employers usually fall back on the administrative exemption or the learned professional exemption. See our pages on case managers, care coordinators and utilization review, and the overview of all white-collar exemptions.

Questions Managers Actually Ask

Is every salaried manager exempt from overtime?

No. The executive exemption requires a salary of at least $684 a week, management as the primary duty, regular direction of at least two full-time employees, and real input on hiring and firing (29 C.F.R. § 541.100). Fail one and it does not apply.

How many employees do I have to supervise to be exempt as an executive?

At least “two full-time employees or their equivalent” (29 C.F.R. § 541.104(a)). Directing them has to be customary and regular, not just filling in when the boss is out.

Are assistant managers exempt from overtime?

Sometimes. An assistant manager can do hands-on work and still qualify if management is the primary duty (29 C.F.R. § 541.106(b)). A working supervisor whose primary duty is nonexempt work, and who directs others only occasionally, does not (29 C.F.R. § 541.106(c)).

What does “particular weight” mean for hiring and firing?

Your recommendations on hiring, firing, promotion or other status changes must actually matter to the decision. It “does not include an occasional suggestion with regard to the change in status of a co-worker” (29 C.F.R. § 541.105).

Is a case manager or care manager a “manager” under the executive exemption?

Usually not. These jobs manage client cases, not employees. Most have no direct reports and no say in hiring or firing, so they fail the executive test regardless of title (29 C.F.R. § 541.2).

Talk to Us

If your title says “manager” but your day says otherwise, we will look at your job description, schedule and pay records at no charge. Siegel Law Group PLLC represents workers — never employers — in FLSA overtime and wage cases. Two related questions come up in most of these matters: how a case gets certified so a whole team can join it, and how far back an overtime claim reaches.

Jack Siegel has filed federal overtime lawsuits in 25 federal districts across 20 states, as lead counsel on the firm’s cases. He has obtained 50+ class and collective certifications in 19 federal judicial districts across 14 states. The firm has recovered more than $100 million for workers.

You pay no fee and no costs unless we recover. Call or text (214) 790-4454, email [email protected], or contact us.

Prior results do not guarantee or predict a similar outcome in any future matter. These are results in other people’s cases. Each case is decided on its own facts, its own record and its own procedural posture. Conditional certification and class certification are procedural rulings about whether a case may proceed as a group action; they are not findings of liability and they are not an award of money. This website contains attorney advertising.

Where to Read the Rules and File a Complaint With an Agency

Sources

  1. 29 C.F.R. § 541.100(a) (the four elements of the executive exemption: the salary requirement at (a)(1) and the duties requirements at (a)(2)–(4)); DOL Fact Sheet #17B (listing the same four elements).
  2. 29 C.F.R. § 541.600(a) ($684 per week), as restored by 91 Fed. Reg. 27835 (May 15, 2026), after the 2024 salary-threshold rule was vacated in Texas v. U.S. Department of Labor (E.D. Tex. Nov. 15, 2024).
  3. 29 C.F.R. § 541.602(a) (salary basis: a “predetermined amount” that is “not subject to reduction because of variations in the quality or quantity of the work performed”).
  4. 29 C.F.R. § 541.700(a) (primary duty is “the principal, main, major or most important duty that the employee performs”); § 541.700(b) (employees who spend more than 50 percent of their time on exempt work generally satisfy the primary duty requirement; time alone is not the sole test).
  5. 29 C.F.R. § 541.102 (management “includes, but is not limited to, activities such as interviewing, selecting, and training of employees,” setting and adjusting rates of pay and hours of work, disciplining employees, planning the work and controlling the budget).
  6. 29 C.F.R. § 541.104(a) (the employee must customarily and regularly direct the work of “two full-time employees or their equivalent”).
  7. 29 C.F.R. § 541.105 (“particular weight”; the phrase “does not include an occasional suggestion with regard to the change in status of a co-worker”).
  8. 29 C.F.R. § 541.106(a) (an employee whose primary duty is “ordinary production work or routine, recurrent or repetitive tasks cannot qualify for exemption as an executive”); § 541.106(b) (assistant managers performing concurrent duties); § 541.106(c) (“a relief supervisor or working supervisor whose primary duty is performing nonexempt work” is not exempt by directing the work of others “when, for example, the exempt supervisor is unavailable”).
  9. 29 C.F.R. § 541.2 (“A job title alone is insufficient to establish the exempt status of an employee.”).
  10. 29 U.S.C. § 207(a)(1) (overtime at “a rate not less than one and one-half times the regular rate” for hours over forty in a workweek).

Attorney responsible: Jack L. Siegel, Dallas, Texas.

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