The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Highly Compensated Executive Employee

Reference Number: MTAS-931
Tennessee Code Annotated
Reviewed Date: July 29, 2016
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Employees who meet the four criteria below are bona fide highly compensated executive 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 executives is $134,004.)
  • Is the employee paid a minimum of $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 exceptions he or she must:
    • Experience no reduction in salary for variations in the quality and quantity of work;
    • Experience no deduction for partial-day absences; and
    • Receive each pay period a pre-determined amount constituting all or part of his or her compensation; or
    • Pay deductions are based on the principle of public accountability.
  • Does the employee regularly and customarily perform one or more exempt duties? 29 C.F.R. § 541.601