Management Duty Triggering the Executive Employee Overtime Exemption in New York

Understanding What the “Management of the Enterprise” Requirements Means to Trigger the Executive Employee Overtime in New York

Generally, employees are required to be paid at a rate of 1.5 times their regular rate of pay for all hours worked in excess of 40 hours in a workweek.  This is called overtime, and is required under federal and New York law.  However, some employees are exempt from overtime.  One type of employee that is exemption from overtime is an executive employee.  To trigger this executive employee exemption, the individual must be engaged in the “management of the enterprise.”  This is not always an easy definition to determination.

Here at SAMUEL & STEIN, our New York City overtime lawyer can help explain how the executive employee exemption applies and whether you are entitled to compensation.  Additionally, employers should contact our firm to understand whether they owe compensation to their employees or whether they may be overpaying them.

What is the “Management of the Enterprise” Requirement?

New York Labor Law section 651 provides that an executive employee is exempt from overtime.  But just labeling an employee as an “executive” is not enough to trigger the executive employee exemption under the Labor Law.  This is why the law has evolved to impose certain requirements to determine whether the exemption applies.

Thus, the crucial determination in assessing whether the executive employee exemption to overtime applies is deciding whether an employee has a role in the “management of the enterprise.”  This is the buzz-phrase that is used to find that an employee is indeed an executive employer.

Some examples of what the Department of Labor, statutory law (legislatively-made law), and common law (judge-made law) considers to be “management of the enterprise” includes the following:

  • Hiring or training employees, including interviewing them for the position;
  • Working with legal compliance measures;
  • Disciplining employees, including terminating employees;
  • Planning work assignments;
  • Setting pay schedules;
  • Balancing the budget;
  • Performing HR tasks rush as handling complaints and grievances submitted by employees;
  • Maintaining sales records;
  • Handling workplace safety and security;
  • Assessing employee’s productivity, efficiency, and ability for evaluation purposes;
  • Assigning work to employees;
  • Managing, purchasing, and providing supplies;
  • Promoting or demoting employees; and
  • Many other.

This list is non-exhaustive, meaning that there could be other tasks that an employee does which could constitute the “management of the enterprise” and trigger the exemption.

Unsure if the Executive Employee Overtime Exemption Applies?  Call Our Law Firm to Learn More

The experienced New York City overtime attorneys at SAMUEL & STEIN are dedicated to asserting and defending the rights of employers and working people throughout New York and New Jersey.  We have the resources, experience, and knowledge necessary to ensure your legal rights are protected and you are not taken advantage of.  Call us today by dialing (646) 480-2149 or use the convenient “Evaluate Now” box on our webpage.  Together we can help answer your questions and protect your rights.

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