The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Highly Compensated Administrative

Reference Number: MTAS-933
Tennessee Code Annotated
Reviewed Date: July 29, 2016
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Employees who meet the four criteria below are bona fide highly compensated administrative employees under DOL’s revised exemption regulations.

  • Is the employee’s total annual compensation at least $100,000. (Effective December 1, 2016, the minimum salary for highly compensated administrative employees is $134,004.)
  • Is the employee paid not less than $455 per week exclusive of board, lodging or other facilities? (Effective December 1, 2016, the minimum salary level is $913 per week.)
  • Is the employee paid on a salary basis? With certain limited exception, he/she must:
    • Experience no reduction in salary for variations in the quality and quantity of work;
    • Experience no deduction for partial-day absences;
    • Receives each pay period a pre-determined amount constituting all or part of his/her compensation; or
    • Pay deductions are based on the principle of public accountability. 29 C.F.R. § 541.602.
  • Does the employee regularly and customarily perform one or more exempt administrative duties involving office or non-manual work either:
    • Directly related to management or general business operations of the employer or the employer’s customers; or
    • That includes the exercise of discretion and independent judgment. 29 C.F.R. § 541.601(d).