Executives who are compensated on a salary basis and engage in management are exempted from overtime pay.

Question

Quizplus · Accepted Answer

This statement is true according to the Fair Labor Standards Act (FLSA). The salary basis test and the duties test are used to determine if employees are exempt from overtime pay. One of the exemptions is for executives who are compensated on a salary basis and primarily engaged in management duties. However, it's important to note that not all employees who are classified as "executives" may be exempt and must still meet the specific criteria laid out by the FLSA.

Executives Who Are Compensated on a Salary Basis and Engage