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The role of executive employees

Posted on January 19, 2015 4:47 pm under Overtime Law and Minimum Wage Violations

Many salaried workers in Wisconsin aremisclassified by their employers as independent contractors rather than employees. Unfortunately, being classified as an independent contractor significantly affects one’s wage, as it makes a worker ineligible for overtime payment.

Some workers are also misclassified by their employers as an executive employee, or someone who has an executive capability. This in turn would prevent him or her from receiving overtime pay. The Wisconsin State Legislature states that bona fide executive employees who are exempted from overtime requirements are those who:

  • Have discretionary powers (ex. have the power to hire and fire)
  • Manage the enterprise or the department where they are employed
  • Manage two or more employee
  • Do not spend more than 20% of their working time on tasks other than mentioned above (40% for those working in service establishments)
  • Salaried at a rate of no less than $700 per month

If you believe you have been mistakenly categorized as an executive employee and have been disallowed overtime benefits, a lawyer at Habush Habush & Rottier S.C. ® can help you seek the compensation you believe you deserve. Call our Milwaukee office at (414) 271-0900 to learn if we can be of help.