Winter 2006-08 What is customary and regular supervision
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).
© 2006 Goldman Antonetti & Cordóva, LLC