Senior Professional in Human Resources (SPHR) — Question 29
An employee earning $22,500 per year supervises three employees and spends 35 hours per week on essential job duties that require discretion and independent judgment. Which of the following describes this employee?
Answer options
- A. Exempt, based on the executive exemption test
- B. Exempt, based on the administrative exemption test
- C. Nonexempt, based on the salary basis requirement
- D. Nonexempt
Correct answer: C
Explanation
The correct answer is C, as the employee does not meet the salary threshold for exempt status under the Fair Labor Standards Act. While the employee has supervisory responsibilities, the low salary and the requirement for discretion do not qualify them for exemption. Options A and B suggest exemption which does not apply due to the salary level, and option D incorrectly categorizes the employee as nonexempt without considering the salary basis requirement.