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Winter 2006-08 What is customary and regular supervision

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Number 62
Winter 2006

What is customary and regular supervision

In Pérez v. Radio Shack Corp., the U.S. District Court for the Northern District of Illinois (case no. 02-7884) established a "bright line" standard for the meaning of the phrases "two or more employees" and "customary and regularly " in the definition of executive exemption under the Fair Labor Standards Act.

It determined that for an executive to be exempted two things are required: (1) spend at least 80% of his time supervising subordinates and (2) supervise two or more employees who together work at least 80 hours a week.

That is, the executive must supervise at least 80 employee-hours each week (unless the employee has a 37.5 hour work-week where a total of 75 employee-hours satisfy the requirement).


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