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).