(a) A ``key employee'' is a salaried FMLA-eligible employee who is
among the highest paid 10 percent of all the employees employed by the
employer within 75 miles of the employee's worksite.
(b) The term ``salaried'' means ``paid on a salary basis,'' as
defined in 29 CFR 541.118. This is the Department of Labor regulation
defining employees who may qualify as exempt from the minimum wage and
overtime requirements of the FLSA as executive, administrative, and
professional employees.
(c) A ``key employee'' must be ``among the highest paid 10 percent''
of all the employees--both salaried and non-salaried, eligible and
ineligible--who are employed by the employer within 75 miles of the
worksite.
(1) In determining which employees are among the highest paid 10
percent, year-to-date earnings are divided by weeks worked by the
employee (including weeks in which paid leave was taken). Earnings
include wages, premium pay, incentive pay, and non-discretionary and
discretionary bonuses. Earnings do not include incentives whose value is
determined at some future date, e.g., stock options, or benefits or
perquisites.
(2) The determination of whether a salaried employee is among the
highest paid 10 percent shall be made at the time the employee gives
notice of the need for leave. No more than 10 percent of the employer's
employees within 75 miles of the worksite may be ``key employees.''
