How to Define an Exempt Employee

For an employee to be exempt as a manager s/he must: 

1. Have primary duties and responsibilities that involve the management of the enterprise.

2. Customarily and regularly direct the work of two or more other employees.

3. Have the authority to hire or fire other employees or make suggestions, which will be given particular weight, about personnel decisions regarding other employees.

4. Customarily and regularly exercise discretionary power.

5. Spend more then 50 percent of his or her time engaged in managerial duties that meet the tests in items 1 through 4; and

6. Earn a monthly salary equivalent to at least two times the state minimum wage for full-time employment.