An employee earning $22,500 per year supervises three employees and spends 35 hours per week on essential job duties that require discretion and independent judgment. Which of the following describes this employee?
A.
Exempt, based on the executive exemption test
B.
Exempt, based on the administrative exemption test
C.
Nonexempt, based on the salary basis requirement
Suggested Answer:C🗳️
Answer option C is correct. Effective in 2004, employees must be paid a minimum of $455 per week to be exempt from FLSA requirements. This employee earns only $432.69 per week. answer is the one that explains why. See Chapter 6 for more information. Chapter: Compensation and Benefits Objective: Compensation
This question is from 2004 and should be updated. The amount per week as of 1/1/2025 is $1,128.
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