Do We Need to Classify Managers as Exempt Under the FLSA?
No. It’s fine to classify managers as nonexempt. As a reminder, exempt and nonexempt are classifications under the Fair Labor Standards Act (FLSA).
That’s the federal law requiring that most employees receive at least minimum wage for each hour worked and overtime pay for hours worked over 40 in a workweek. Usually, employees who are entitled to both minimum wage and overtime are called nonexempt. Those who are not entitled to both are called exempt.
You are under no obligation to classify managers or any other employee as exempt, even if they meet the criteria under the FLSA. In fact, you could have an entire workforce of nonexempt employees, right up to the CEO. The important thing is to follow all wage and hour laws applicable to nonexempt employees, including paying them for overtime.
Having said that, there are advantages to classifying employees as exempt if they meet all the criteria. It’s administratively easier for you as the employer. There’s no need to track hours for calculating overtime. And many employees prefer to be paid a salary that doesn’t change from week to week.
