Highly Compensated Worker Exemption

Reference Number: 
CTAS-144

The regulations create a special category of exemption for employees who earn $107,432 or more per year, known as the “highly compensated worker” rule. An employee meets this exemption if he or she meets the following requirements:[1]

  1. The employee earns total annual compensation of $107,432 or more, which includes at least $684 per week paid on a salary or fee basis;
  2. The employee’s primary duty includes performing office or non-manual work; and
  3. The employee customarily and regularly performs at least one of the exempt duties or responsibilities of an exempt executive, administrative or professional employee.

[1] The requirements are set out in 29 C.F.R. § 541.601.