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SOPs / Personnel / Overtime Exempt Definition

To avoid confusion as to which employees are overtime exempt and which are not, the follow outlines the criteria in accordance with our current understanding of the law. All employees who do not meet the tests for "executive" or "administrative" exemptions which are outlined below must be paid overtime pay when they work more than 40 hours in any given week. See the Employee Handbook for the hotel's work week definition.

EXECUTIVES

Primary Duty:

Manages an enterprise, department or subdivision of one.

Supervision:

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

Authority:

Can hire and fire or suggest changes in status of other employees.

Discretion:

Customarily and regularly exercises discretionary powers.

Nonexempt Work:

In a retail or service (hotel or restaurant) establishment, must be less than 40% of his or her weekly hours. In any other establishment, may not exceed 20%. Exceptions: There is no limitation as to employees who are in charge of an independent establishment or physically separated branch, or who own a minimum of a 20% interest in the business.

Examples of An Executive's Exempt Duties:

  1. Interviewing, selecting and training employees.

  2. Setting and adjusting pay rates and work hours.

  3. Directing work.

  4. Keeping production records of subordinates for use in supervision.

  5. Evaluating employees' efficiency and productivity.

  6. Handling employees' complaints.

  7. Disciplining employees.

  8. Planning work.

  9. Determining techniques.

  10. Distributing work.

  11. Deciding on types of merchandise, materials, supplies, machinery or tools.

  12. Controlling flow and distribution of merchandise, materials and supplies.

  13. Providing for safety of employees and property.

Examples of Non-Exempt Duties applicable to hotels:

  1. Performing the same kind of work as employees under his or her supervision.

  2. Performing routine clerical duties, such as bookkeeping, billing, filing

  3. Keeping records for employees not under his or her supervision.

  4. Preparing payrolls.

ADMINISTRATIVE EMPLOYEES

Primary Duty:

Performs office or non-manual work relating to management policies or general business operations of employer or employer's customers.

Other Duties:

Regularly and directly assists a proprietor, an executive, or an administrative employee, or: works under only general supervision along specialized or technical lines requiring special training, experience or knowledge, or: executes under only general supervision special assignment and tasks.

Discretion:

Customarily and regularly exercises discretion and independent judgment.

Nonexempt Work:

Non-exempt work performed by an administrative employee in a retail or service establishment must be less than 40% of his or her weekly hours. Nonexempt work performed by any other administrative employee is limited to 20% of his or her weekly hours.

Examples of Types Of Administrative Exempt Employees:

  1. Executive and administrative assistants, such as executive secretaries, assistants to the general manager, confidential assistants and the like. These employees assist an executive or general manager in responsible duties, but do not necessarily have executive authority.

  2. Staff employees who are advisory specialists for management, such as tax, insurance, and sales research experts; wage rate analysts, investment consultants; heads of one-person departments, such as credit managers, purchasing agents, buyers, safety directors, personnel directors and labor relations directors.

  3. Those who perform special assignments, often away from their employer's place of business, such as management consultants, lease buyers, etc.

Some relevant classifications that should be closely examined against these criteria to determine exempt or nonexempt status are:

Front Office Manager Front Office Supervisor
Assistant Housekeeper Housekeeping Supervisor
Assistant Maitre d' Chef, Asst. or Sous Chef
Chief Engineer Asst. Chief Engineer

Head Maintenance Person

Steward or Asst. Steward
Head Bartender Banquet Setup Supervisor
Head Door Service Superintendent of Services
Credit Manager Entertainment Director
Chief Security Officer Night Manager
Night Auditor Assistant Auditor
General Cashier Paymaster
Head Front Office Cashier Chief Telephone Operator
Sales Department Staff Catering Director

 
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