Mike is the CEO of Rosario Industries, a research organization, and he makes an annual salary of $200,000. Mike is chiefly responsible for the development of the organization, patenting all of the company’s intellectual property, and licensing that property to grow the company’s revenue. Which of the following white collar exemptions would Mike qualify for?
Explanation
Answer: B - In this scenario, Mike would qualify for the “well compensated” exemption.
Key Takeaway: Highly-compensated employees who are performing office or other non-manual work are considered to have a white-collar exemption if they are paid $100,000 or more annually. Additionally, the employee must also meet one of the other standards tests for white-collar exemption, performing at least one of the duties of professional, executive, or administrative employees.
