Department of Labor: Regulations

Friday,
April 23, 2004

Part II
Department of Labor

Wage and Hour Division
29 CFR Part 541

Defining and Delimiting the Exemptions
for Executive, Administrative,
Professional, Outside Sales and Computer
Employees; Final Rule
Regulations
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22260 Federal Register / Vol. 69, No. 79 / Friday, April 23, 2004 / Rules and Regulations
541.304 Practice of law or medicine. B; administrative employees, subpart C;

Subpart E—Computer Employees professional employees, subpart D;
computer employees, subpart E; outside
541.400 General rule for computer
employees. sales employees, subpart F. Subpart G
541.401 Computer manufacture and repair. contains regulations regarding salary
541.402 Executive and administrative requirements applicable to most of the
computer employees. exemptions, including salary levels and
Subpart F—Outside Sales Employees the salary basis test. Subpart G also
contains a provision for exempting
541.500 General rule for outside sales
employees.
certain highly compensated employees.
541.501 Making sales or obtaining orders. Subpart H contains definitions and
541.502 Away from employer’s place of other miscellaneous provisions
business. applicable to all or several of the
541.503 Promotion work. exemptions.
541.504 Drivers who sell. (c) Effective July 1, 1972, the Fair
Subpart G—Salary Requirements Labor Standards Act was amended to
541.600 Amount of salary required.
include within the protection of the

541.601 Highly compensated employees.
equal pay provisions those employees
541.602 Salary basis.
exempt from the minimum wage and
541.603 Effect of improper deductions from
overtime pay provisions as bona fide
salary. executive, administrative, and
541.604 Minimum guarantee plus extras. professional employees (including any
541.605 Fee basis. employee employed in the capacity of
541.606 Board, lodging or other facilities.
academic administrative personnel or
Subpart H—Definitions And Miscellaneous teacher in elementary or secondary
Provisions schools), or in the capacity of an outside
■ For the reasons set forth above, 29 541.700 Primary duty.
sales employee under section 13(a)(1) of
CFR part 541 is revised to read as 541.701 Customarily and regularly.
the Act. The equal pay provisions in
follows: 541.702 Exempt and nonexempt work.
section 6(d) of the Fair Labor Standards
541.703 Directly and closely related.
Act are administered and enforced by
PART 541—DEFINING AND 541.704 Use of manuals.
541.705 Trainees.
the United States Equal Employment

DELIMITING THE EXEMPTIONS FOR
541.706 Emergencies.
Opportunity Commission.
EXECUTIVE, ADMINISTRATIVE,
PROFESSIONAL, COMPUTER AND 541.707 Occasional tasks.
§ 541.1 Terms used in regulations.

541.708 Combination exemptions.
OUTSIDE SALES EMPLOYEES 541.709 Motion picture producing industry.

Act means the Fair Labor Standards
Subpart A—General Regulations 541.710 Employees of public agencies.
Act of 1938, as amended.
Authority: 29 U.S.C. 213; Public Law 101– Administrator means the
Sec.
541.0 Introductory statement.

583, 104 Stat. 2871; Reorganization Plan No. Administrator of the Wage and Hour
541.1 Terms used in regulations.
6 of 1950 (3 CFR 1945–53 Comp. p. 1004); Division, United States Department of
541.2 Job titles insufficient.
Secretary’s Order No. 4–2001 (66 FR 29656). Labor. The Secretary of Labor has
541.3 Scope of the section 13(a)(1)
delegated to the Administrator the
exemptions. Subpart A—General Regulations functions vested in the Secretary under
541.4 Other laws and collective bargaining sections 13(a)(1) and 13(a)(17) of the
agreements. § 541.0 Introductory statement.
Fair Labor Standards Act.
(a) Section 13(a)(1) of the Fair Labor
Subpart B—Executive Employees Standards Act, as amended, provides an § 541.2 Job titles insufficient.
541.100 General rule for executive exemption from the Act’s minimum A job title alone is insufficient to
employees. wage and overtime requirements for any
541.101 Business owner. establish the exempt status of an
employee employed in a bona fide employee. The exempt or nonexempt
541.102 Management.
541.103 Department or subdivision. executive, administrative, or status of any particular employee must
541.104 Two or more other employees. professional capacity (including any be determined on the basis of whether
541.105 Particular weight. employee employed in the capacity of the employee’s salary and duties meet
541.106 Concurrent duties. academic administrative personnel or the requirements of the regulations in
Subpart C—Administrative Employees
teacher in elementary or secondary this part.
schools), or in the capacity of an outside
541.200 General rule for administrative sales employee, as such terms are § 541.3 Scope of the section 13(a)(1)
employees. exemptions.
541.201 Directly related to management or
defined and delimited from time to time
general business operations. by regulations of the Secretary, subject (a) The section 13(a)(1) exemptions
541.202 Discretion and independent to the provisions of the Administrative and the regulations in this part do not
judgment. Procedure Act. Section 13(a)(17) of the apply to manual laborers or other ‘‘blue
541.203 Administrative exemption Act provides an exemption from the collar’’ workers who perform work
examples. minimum wage and overtime involving repetitive operations with
541.204 Educational establishments. requirements for computer systems their hands, physical skill and energy.
Subpart D—Professional Employees analysts, computer programmers, Such nonexempt ‘‘blue collar’’
541.300 General rule for professional software engineers, and other similarly employees gain the skills and
employees. skilled computer employees. knowledge required for performance of
541.301 Learned professionals. (b) The requirements for these their routine manual and physical work
541.302 Creative professionals. exemptions are contained in this part as through apprenticeships and on-the-job
541.303 Teachers. follows: executive employees, subpart training, not through the prolonged
Federal Register / Vol. 69, No. 79 / Friday, April 23, 2004 / Rules and Regulations 22261
course of specialized intellectual primary duty is not the performance of suggestions and recommendations as to
instruction required for exempt learned work requiring knowledge of an the hiring, firing, advancement,
professional employees such as medical advanced type in a field of science or promotion or any other change of status
doctors, architects and archeologists. learning customarily acquired by a of other employees are given particular
Thus, for example, non-management prolonged course of specialized weight.
production-line employees and non- intellectual instruction or the (b) The phrase ‘‘salary basis’’ is
management employees in maintenance, performance of work requiring defined at § 541.602; ‘‘board, lodging or
construction and similar occupations invention, imagination, originality or other facilities’’ is defined at § 541.606;
such as carpenters, electricians, talent in a recognized field of artistic or ‘‘primary duty’’ is defined at § 541.700;
mechanics, plumbers, iron workers, creative endeavor as required under and ‘‘customarily and regularly’’ is
craftsmen, operating engineers, § 541.300. Although some police defined at § 541.701.
longshoremen, construction workers officers, fire fighters, paramedics,
and laborers are entitled to minimum emergency medical technicians and § 541.101 Business owner.
wage and overtime premium pay under similar employees have college degrees, The term ‘‘employee employed in a
the Fair Labor Standards Act, and are a specialized academic degree is not a bona fide executive capacity’’ in section
not exempt under the regulations in this standard prerequisite for employment in 13(a)(1) of the Act also includes any
part no matter how highly paid they such occupations. employee who owns at least a bona fide
might be. 20-percent equity interest in the
(b)(1) The section 13(a)(1) exemptions § 541.4 Other laws and collective enterprise in which the employee is
bargaining agreements. employed, regardless of whether the
and the regulations in this part also do
not apply to police officers, detectives, The Fair Labor Standards Act business is a corporate or other type of
deputy sheriffs, state troopers, highway provides minimum standards that may organization, and who is actively
patrol officers, investigators, inspectors, be exceeded, but cannot be waived or engaged in its management. The term
correctional officers, parole or probation reduced. Employers must comply, for ‘‘management’’ is defined in § 541.102.
officers, park rangers, fire fighters, example, with any Federal, State or The requirements of Subpart G (salary
paramedics, emergency medical municipal laws, regulations or requirements) of this part do not apply
technicians, ambulance personnel, ordinances establishing a higher to the business owners described in this
rescue workers, hazardous materials minimum wage or lower maximum section.
workers and similar employees, workweek than those established under
regardless of rank or pay level, who the Act. Similarly, employers, on their § 541.102 Management.
perform work such as preventing, own initiative or under a collective Generally, ‘‘management’’ includes,
controlling or extinguishing fires of any bargaining agreement with a labor but is not limited to, activities such as
type; rescuing fire, crime or accident union, are not precluded by the Act interviewing, selecting, and training of
victims; preventing or detecting crimes; from providing a wage higher than the employees; setting and adjusting their
conducting investigations or inspections statutory minimum, a shorter workweek rates of pay and hours of work; directing
for violations of law; performing than the statutory maximum, or a higher the work of employees; maintaining
surveillance; pursuing, restraining and overtime premium (double time, for production or sales records for use in
apprehending suspects; detaining or example) than provided by the Act. supervision or control; appraising
supervising suspected and convicted While collective bargaining agreements employees’ productivity and efficiency
criminals, including those on probation cannot waive or reduce the Act’s for the purpose of recommending
or parole; interviewing witnesses; protections, nothing in the Act or the promotions or other changes in status;
interrogating and fingerprinting regulations in this part relieves handling employee complaints and
suspects; preparing investigative employers from their contractual grievances; disciplining employees;
reports; or other similar work. obligations under collective bargaining planning the work; determining the
(2) Such employees do not qualify as agreements. techniques to be used; apportioning the
exempt executive employees because work among the employees;
their primary duty is not management of Subpart B—Executive Employees
determining the type of materials,
the enterprise in which the employee is § 541.100 General rule for executive supplies, machinery, equipment or tools
employed or a customarily recognized employees. to be used or merchandise to be bought,
department or subdivision thereof as (a) The term ‘‘employee employed in stocked and sold; controlling the flow
required under § 541.100. Thus, for a bona fide executive capacity’’ in and distribution of materials or
example, a police officer or fire fighter section 13(a)(1) of the Act shall mean merchandise and supplies; providing for
whose primary duty is to investigate any employee: the safety and security of the employees
crimes or fight fires is not exempt under (1) Compensated on a salary basis at or the property; planning and
section 13(a)(1) of the Act merely a rate of not less than $455 per week (or controlling the budget; and monitoring
because the police officer or fire fighter $380 per week, if employed in or implementing legal compliance
also directs the work of other employees American Samoa by employers other measures.
in the conduct of an investigation or than the Federal Government), exclusive
fighting a fire. of board, lodging or other facilities; § 541.103 Department or subdivision.
(3) Such employees do not qualify as (2) Whose primary duty is (a) The phrase ‘‘a customarily
exempt administrative employees management of the enterprise in which recognized department or subdivision’’
because their primary duty is not the the employee is employed or of a is intended to distinguish between a
performance of work directly related to customarily recognized department or mere collection of employees assigned
the management or general business subdivision thereof; from time to time to a specific job or
operations of the employer or the (3) Who customarily and regularly series of jobs and a unit with permanent
employer’s customers as required under directs the work of two or more other status and function. A customarily
§ 541.200. employees; and recognized department or subdivision
(4) Such employees do not qualify as (4) Who has the authority to hire or must have a permanent status and a
exempt professionals because their fire other employees or whose continuing function. For example, a
large employer’s human resources same two employees in the same does not preclude the exemption if the
department might have subdivisions for department does not satisfy this assistant manager’s primary duty is
labor relations, pensions and other requirement. However, a full-time management. An assistant manager can
benefits, equal employment employee who works four hours for one supervise employees and serve
opportunity, and personnel supervisor and four hours for a different customers at the same time without
management, each of which has a supervisor, for example, can be credited losing the exemption. An exempt
permanent status and function. as a half-time employee for both employee can also simultaneously
(b) When an enterprise has more than supervisors. direct the work of other employees and
one establishment, the employee in stock shelves.
charge of each establishment may be § 541.105 Particular weight.
(c) In contrast, a relief supervisor or
considered in charge of a recognized To determine whether an employee’s working supervisor whose primary duty
subdivision of the enterprise. suggestions and recommendations are is performing nonexempt work on the
(c) A recognized department or given ‘‘particular weight,’’ factors to be production line in a manufacturing
subdivision need not be physically considered include, but are not limited plant does not become exempt merely
within the employer’s establishment to, whether it is part of the employee’s because the nonexempt production line
and may move from place to place. The job duties to make such suggestions and employee occasionally has some
mere fact that the employee works in recommendations; the frequency with responsibility for directing the work of
more than one location does not which such suggestions and other nonexempt production line
invalidate the exemption if other factors recommendations are made or employees when, for example, the
show that the employee is actually in requested; and the frequency with exempt supervisor is unavailable.
charge of a recognized unit with a which the employee’s suggestions and Similarly, an employee whose primary
continuing function in the organization. recommendations are relied upon. duty is to work as an electrician is not
(d) Continuity of the same Generally, an executive’s suggestions an exempt executive even if the
subordinate personnel is not essential to and recommendations must pertain to employee also directs the work of other
the existence of a recognized unit with employees whom the executive employees on the job site, orders parts
a continuing function. An otherwise customarily and regularly directs. It and materials for the job, and handles
exempt employee will not lose the does not include an occasional requests from the prime contractor.
exemption merely because the employee suggestion with regard to the change in
draws and supervises workers from a status of a co-worker. An employee’s Subpart C—Administrative Employees
pool or supervises a team of workers suggestions and recommendations may
drawn from other recognized units, if still be deemed to have ‘‘particular § 541.200 General rule for administrative
weight’’ even if a higher level manager’s employees.
other factors are present that indicate
that the employee is in charge of a recommendation has more importance (a) The term ‘‘employee employed in
recognized unit with a continuing and even if the employee does not have a bona fide administrative capacity’’ in
function. authority to make the ultimate decision section 13(a)(1) of the Act shall mean
as to the employee’s change in status. any employee:
§ 541.104 Two or more other employees. (1) Compensated on a salary or fee
(a) To qualify as an exempt executive § 541.106 Concurrent duties. basis at a rate of not less than $455 per
under § 541.100, the employee must (a) Concurrent performance of exempt week (or $380 per week, if employed in
customarily and regularly direct the and nonexempt work does not American Samoa by employers other
work of two or more other employees. disqualify an employee from the than the Federal Government), exclusive
The phrase ‘‘two or more other executive exemption if the requirements of board, lodging or other facilities;
employees’’ means two full-time of § 541.100 are otherwise met. Whether (2) Whose primary duty is the
employees or their equivalent. One full- an employee meets the requirements of performance of office or non-manual
time and two half-time employees, for § 541.100 when the employee performs work directly related to the management
example, are equivalent to two full-time concurrent duties is determined on a or general business operations of the
employees. Four half-time employees case-by-case basis and based on the employer or the employer’s customers;
are also equivalent. factors set forth in § 541.700. Generally, and
(b) The supervision can be distributed exempt executives make the decision (3) Whose primary duty includes the
among two, three or more employees, regarding when to perform nonexempt exercise of discretion and independent
but each such employee must duties and remain responsible for the judgment with respect to matters of
customarily and regularly direct the success or failure of business operations significance.
work of two or more other full-time under their management while (b) The term ‘‘salary basis’’ is defined
employees or the equivalent. Thus, for performing the nonexempt work. In at § 541.602; ‘‘fee basis’’ is defined at
example, a department with five full- contrast, the nonexempt employee § 541.605; ‘‘board, lodging or other
time nonexempt workers may have up generally is directed by a supervisor to facilities’’ is defined at § 541.606; and
to two exempt supervisors if each such perform the exempt work or performs ‘‘primary duty’’ is defined at § 541.700.
supervisor customarily and regularly the exempt work for defined time
directs the work of two of those periods. An employee whose primary § 541.201 Directly related to management
workers. duty is ordinary production work or or general business operations.
(c) An employee who merely assists routine, recurrent or repetitive tasks (a) To qualify for the administrative
the manager of a particular department cannot qualify for exemption as an exemption, an employee’s primary duty
and supervises two or more employees executive. must be the performance of work
only in the actual manager’s absence (b) For example, an assistant manager directly related to the management or
does not meet this requirement. in a retail establishment may perform general business operations of the
(d) Hours worked by an employee work such as serving customers, employer or the employer’s customers.
cannot be credited more than once for cooking food, stocking shelves and The phrase ‘‘directly related to the
different executives. Thus, a shared cleaning the establishment, but management or general business
responsibility for the supervision of the performance of such nonexempt work operations’’ refers to the type of work
performed by the employee. To meet operations of the business; whether the such employee does not involve the
this requirement, an employee must employee performs work that affects exercise of discretion and independent
perform work directly related to business operations to a substantial judgment with respect to matters of
assisting with the running or servicing degree, even if the employee’s significance.
of the business, as distinguished, for assignments are related to operation of (e) The exercise of discretion and
example, from working on a a particular segment of the business; independent judgment must be more
manufacturing production line or whether the employee has authority to than the use of skill in applying well-
selling a product in a retail or service commit the employer in matters that established techniques, procedures or
establishment. have significant financial impact; specific standards described in manuals
(b) Work directly related to whether the employee has authority to or other sources. See also § 541.704
management or general business waive or deviate from established regarding use of manuals. The exercise
operations includes, but is not limited policies and procedures without prior of discretion and independent judgment
to, work in functional areas such as tax; approval; whether the employee has also does not include clerical or
finance; accounting; budgeting; authority to negotiate and bind the secretarial work, recording or tabulating
auditing; insurance; quality control; company on significant matters; data, or performing other mechanical,
purchasing; procurement; advertising; whether the employee provides repetitive, recurrent or routine work. An
marketing; research; safety and health; consultation or expert advice to employee who simply tabulates data is
personnel management; human management; whether the employee is not exempt, even if labeled as a
resources; employee benefits; labor involved in planning long- or short-term ‘‘statistician.’’
relations; public relations, government business objectives; whether the (f) An employee does not exercise
relations; computer network, internet employee investigates and resolves discretion and independent judgment
and database administration; legal and matters of significance on behalf of with respect to matters of significance
regulatory compliance; and similar management; and whether the employee merely because the employer will
activities. Some of these activities may represents the company in handling experience financial losses if the
be performed by employees who also complaints, arbitrating disputes or employee fails to perform the job
would qualify for another exemption. resolving grievances. properly. For example, a messenger who
(c) An employee may qualify for the (c) The exercise of discretion and is entrusted with carrying large sums of
administrative exemption if the independent judgment implies that the money does not exercise discretion and
employee’s primary duty is the employee has authority to make an independent judgment with respect to
performance of work directly related to independent choice, free from matters of significance even though
the management or general business immediate direction or supervision. serious consequences may flow from the
operations of the employer’s customers. However, employees can exercise employee’s neglect. Similarly, an
Thus, for example, employees acting as discretion and independent judgment employee who operates very expensive
advisers or consultants to their even if their decisions or equipment does not exercise discretion
employer’s clients or customers (as tax recommendations are reviewed at a and independent judgment with respect
experts or financial consultants, for higher level. Thus, the term ‘‘discretion to matters of significance merely
example) may be exempt. and independent judgment’’ does not because improper performance of the
require that the decisions made by an employee’s duties may cause serious
§ 541.202 Discretion and independent employee have a finality that goes with financial loss to the employer.
judgment. unlimited authority and a complete
(a) To qualify for the administrative absence of review. The decisions made § 541.203 Administrative exemption
exemption, an employee’s primary duty as a result of the exercise of discretion examples.
must include the exercise of discretion and independent judgment may consist (a) Insurance claims adjusters
and independent judgment with respect of recommendations for action rather generally meet the duties requirements
to matters of significance. In general, the than the actual taking of action. The fact for the administrative exemption,
exercise of discretion and independent that an employee’s decision may be whether they work for an insurance
judgment involves the comparison and subject to review and that upon company or other type of company, if
the evaluation of possible courses of occasion the decisions are revised or their duties include activities such as
conduct, and acting or making a reversed after review does not mean that interviewing insureds, witnesses and
decision after the various possibilities the employee is not exercising physicians; inspecting property damage;
have been considered. The term discretion and independent judgment. reviewing factual information to prepare
‘‘matters of significance’’ refers to the For example, the policies formulated by damage estimates; evaluating and
level of importance or consequence of the credit manager of a large corporation making recommendations regarding
the work performed. may be subject to review by higher coverage of claims; determining liability
(b) The phrase ‘‘discretion and company officials who may approve or and total value of a claim; negotiating
independent judgment’’ must be applied disapprove these policies. The settlements; and making
in the light of all the facts involved in management consultant who has made recommendations regarding litigation.
the particular employment situation in a study of the operations of a business (b) Employees in the financial
which the question arises. Factors to and who has drawn a proposed change services industry generally meet the
consider when determining whether an in organization may have the plan duties requirements for the
employee exercises discretion and reviewed or revised by superiors before administrative exemption if their duties
independent judgment with respect to it is submitted to the client. include work such as collecting and
matters of significance include, but are (d) An employer’s volume of business analyzing information regarding the
not limited to: whether the employee may make it necessary to employ a customer’s income, assets, investments
has authority to formulate, affect, number of employees to perform the or debts; determining which financial
interpret, or implement management same or similar work. The fact that products best meet the customer’s needs
policies or operating practices; whether many employees perform identical work and financial circumstances; advising
the employee carries out major or work of the same relative importance the customer regarding the advantages
assignments in conducting the does not mean that the work of each and disadvantages of different financial
products; and marketing, servicing or requirements for the administrative § 541.204 Educational establishments.
promoting the employer’s financial exemption even if they must consult (a) The term ‘‘employee employed in
products. However, an employee whose with top management officials when a bona fide administrative capacity’’ in
primary duty is selling financial making a purchase commitment for raw section 13(a)(1) of the Act also includes
products does not qualify for the materials in excess of the contemplated employees:
administrative exemption. plant needs. (1) Compensated for services on a
(c) An employee who leads a team of (g) Ordinary inspection work salary or fee basis at a rate of not less
other employees assigned to complete generally does not meet the duties than $455 per week (or $380 per week,
major projects for the employer (such as requirements for the administrative if employed in American Samoa by
purchasing, selling or closing all or part exemption. Inspectors normally perform employers other than the Federal
of the business, negotiating a real estate specialized work along standardized Government) exclusive of board, lodging
transaction or a collective bargaining lines involving well-established or other facilities, or on a salary basis
agreement, or designing and techniques and procedures which may which is at least equal to the entrance
implementing productivity have been catalogued and described in salary for teachers in the educational
improvements) generally meets the manuals or other sources. Such establishment by which employed; and
duties requirements for the inspectors rely on techniques and skills (2) Whose primary duty is performing
administrative exemption, even if the acquired by special training or administrative functions directly related
employee does not have direct experience. They have some leeway in to academic instruction or training in an
supervisory responsibility over the other the performance of their work but only educational establishment or
employees on the team. within closely prescribed limits. department or subdivision thereof.
(d) An executive assistant or (h) Employees usually called
(b) The term ‘‘educational
administrative assistant to a business examiners or graders, such as employees
establishment’’ means an elementary or
owner or senior executive of a large that grade lumber, generally do not meet
secondary school system, an institution
business generally meets the duties the duties requirements for the
requirements for the administrative administrative exemption. Such of higher education or other educational
exemption if such employee, without employees usually perform work institution. Sections 3(v) and 3(w) of the
specific instructions or prescribed involving the comparison of products Act define elementary and secondary
procedures, has been delegated with established standards which are schools as those day or residential
authority regarding matters of frequently catalogued. Often, after schools that provide elementary or
significance. continued reference to the written secondary education, as determined
(e) Human resources managers who standards, or through experience, the under State law. Under the laws of most
formulate, interpret or implement employee acquires sufficient knowledge States, such education includes the
employment policies and management so that reference to written standards is curriculums in grades 1 through 12;
consultants who study the operations of unnecessary. The substitution of the under many it includes also the
a business and propose changes in employee’s memory for a manual of introductory programs in kindergarten.
organization generally meet the duties standards does not convert the character Such education in some States may also
requirements for the administrative of the work performed to exempt work include nursery school programs in
exemption. However, personnel clerks requiring the exercise of discretion and elementary education and junior college
who ‘‘screen’’ applicants to obtain data independent judgment. curriculums in secondary education.
regarding their minimum qualifications (i) Comparison shopping performed The term ‘‘other educational
and fitness for employment generally do by an employee of a retail store who establishment’’ includes special schools
not meet the duties requirements for the merely reports to the buyer the prices at for mentally or physically disabled or
administrative exemption. Such a competitor’s store does not qualify for gifted children, regardless of any
personnel clerks typically will reject all the administrative exemption. However, classification of such schools as
applicants who do not meet minimum the buyer who evaluates such reports on elementary, secondary or higher. Factors
standards for the particular job or for competitor prices to set the employer’s relevant in determining whether post
employment by the company. The prices generally meets the duties secondary career programs are
minimum standards are usually set by requirements for the administrative educational institutions include
the exempt human resources manager or exemption. whether the school is licensed by a state
other company officials, and the (j) Public sector inspectors or agency responsible for the state’s
decision to hire from the group of investigators of various types, such as educational system or accredited by a
qualified applicants who do meet the fire prevention or safety, building or nationally recognized accrediting
minimum standards is similarly made construction, health or sanitation, organization for career schools. Also, for
by the exempt human resources environmental or soils specialists and purposes of the exemption, no
manager or other company officials. similar employees, generally do not distinction is drawn between public and
Thus, when the interviewing and meet the duties requirements for the private schools, or between those
screening functions are performed by administrative exemption because their operated for profit and those that are not
the human resources manager or work typically does not involve work for profit.
personnel manager who makes the directly related to the management or (c) The phrase ‘‘performing
hiring decision or makes general business operations of the administrative functions directly related
recommendations for hiring from the employer. Such employees also do not to academic instruction or training’’
pool of qualified applicants, such duties qualify for the administrative exemption means work related to the academic
constitute exempt work, even though because their work involves the use of operations and functions in a school
routine, because this work is directly skills and technical abilities in gathering rather than to administration along the
and closely related to the employee’s factual information, applying known lines of general business operations.
exempt functions. standards or prescribed procedures, Such academic administrative functions
(f) Purchasing agents with authority to determining which procedure to follow, include operations directly in the field
bind the company on significant or determining whether prescribed of education. Jobs relating to areas
purchases generally meet the duties standards or criteria are met. outside the educational field are not
within the definition of academic § 541.605; ‘‘board, lodging or other through a combination of work
administration. facilities’’ is defined at § 541.606; and experience and intellectual instruction.
(1) Employees engaged in academic ‘‘primary duty’’ is defined at § 541.700. Thus, for example, the learned
administrative functions include: the professional exemption is available to
superintendent or other head of an § 541.301 Learned professionals. the occasional lawyer who has not gone
elementary or secondary school system, (a) To qualify for the learned to law school, or the occasional chemist
and any assistants, responsible for professional exemption, an employee’s who is not the possessor of a degree in
administration of such matters as primary duty must be the performance chemistry. However, the learned
curriculum, quality and methods of of work requiring advanced knowledge professional exemption is not available
instructing, measuring and testing the in a field of science or learning for occupations that customarily may be
learning potential and achievement of customarily acquired by a prolonged performed with only the general
students, establishing and maintaining course of specialized intellectual knowledge acquired by an academic
academic and grading standards, and instruction. This primary duty test degree in any field, with knowledge
other aspects of the teaching program; includes three elements: acquired through an apprenticeship, or
the principal and any vice-principals (1) The employee must perform work with training in the performance of
responsible for the operation of an requiring advanced knowledge; routine mental, manual, mechanical or
elementary or secondary school; (2) The advanced knowledge must be physical processes. The learned
department heads in institutions of in a field of science or learning; and professional exemption also does not
(3) The advanced knowledge must be apply to occupations in which most
higher education responsible for the
customarily acquired by a prolonged employees have acquired their skill by
administration of the mathematics
course of specialized intellectual experience rather than by advanced
department, the English department, the
instruction. specialized intellectual instruction.
foreign language department, etc.; (b) The phrase ‘‘work requiring
academic counselors who perform work (e) (1) Registered or certified medical
advanced knowledge’’ means work technologists. Registered or certified
such as administering school testing which is predominantly intellectual in
programs, assisting students with medical technologists who have
character, and which includes work successfully completed three academic
academic problems and advising requiring the consistent exercise of
students concerning degree years of pre-professional study in an
discretion and judgment, as accredited college or university plus a
requirements; and other employees with distinguished from performance of
similar responsibilities. fourth year of professional course work
routine mental, manual, mechanical or in a school of medical technology
(2) Jobs relating to building physical work. An employee who
management and maintenance, jobs approved by the Council of Medical
performs work requiring advanced Education of the American Medical
relating to the health of the students, knowledge generally uses the advanced
and academic staff such as social Association generally meet the duties
knowledge to analyze, interpret or make requirements for the learned
workers, psychologists, lunch room deductions from varying facts or
managers or dietitians do not perform professional exemption.
circumstances. Advanced knowledge (2) Nurses. Registered nurses who are
academic administrative functions. cannot be attained at the high school
Although such work is not considered registered by the appropriate State
level. examining board generally meet the
academic administration, such (c) The phrase ‘‘field of science or
employees may qualify for exemption duties requirements for the learned
learning’’ includes the traditional professional exemption. Licensed
under § 541.200 or under other sections professions of law, medicine, theology, practical nurses and other similar health
of this part, provided the requirements accounting, actuarial computation, care employees, however, generally do
for such exemptions are met. engineering, architecture, teaching, not qualify as exempt learned
Subpart D—Professional Employees various types of physical, chemical and professionals because possession of a
biological sciences, pharmacy and other specialized advanced academic degree
§ 541.300 General rule for professional similar occupations that have a is not a standard prerequisite for entry
employees. recognized professional status as into such occupations.
(a) The term ‘‘employee employed in distinguished from the mechanical arts (3) Dental hygienists. Dental
a bona fide professional capacity’’ in or skilled trades where in some hygienists who have successfully
section 13(a)(1) of the Act shall mean instances the knowledge is of a fairly completed four academic years of pre
any employee: advanced type, but is not in a field of professional and professional study in
(1) Compensated on a salary or fee science or learning. an accredited college or university
basis at a rate of not less than $455 per (d) The phrase ‘‘customarily acquired approved by the Commission on
week (or $380 per week, if employed in by a prolonged course of specialized Accreditation of Dental and Dental
American Samoa by employers other intellectual instruction’’ restricts the Auxiliary Educational Programs of the
than the Federal Government), exclusive exemption to professions where American Dental Association generally
of board, lodging, or other facilities; and specialized academic training is a meet the duties requirements for the
(2) Whose primary duty is the standard prerequisite for entrance into learned professional exemption.
performance of work: the profession. The best prima facie (4) Physician assistants. Physician
(i) Requiring knowledge of an evidence that an employee meets this assistants who have successfully
advanced type in a field of science or requirement is possession of the completed four academic years of pre
learning customarily acquired by a appropriate academic degree. However, professional and professional study,
prolonged course of specialized the word ‘‘customarily’’ means that the including graduation from a physician
intellectual instruction; or exemption is also available to assistant program accredited by the
(ii) Requiring invention, imagination, employees in such professions who Accreditation Review Commission on
originality or talent in a recognized field have substantially the same knowledge Education for the Physician Assistant,
of artistic or creative endeavor. level and perform substantially the same and who are certified by the National
(b) The term ‘‘salary basis’’ is defined work as the degreed employees, but who Commission on Certification of
at § 541.602; ‘‘fee basis’’ is defined at attained the advanced knowledge Physician Assistants generally meet the
duties requirements for the learned meet the duties requirements for the work to their employers (the majority of
professional exemption. learned professional exemption. such persons are, of course, not
(5) Accountants. Certified public (f) The areas in which the professional employees but self-employed); and
accountants generally meet the duties exemption may be available are persons holding the more responsible
requirements for the learned expanding. As knowledge is developed, writing positions in advertising
professional exemption. In addition, academic training is broadened and agencies. This requirement generally is
many other accountants who are not specialized degrees are offered in new not met by a person who is employed
certified public accountants but perform and diverse fields, thus creating new as a copyist, as an ‘‘animator’’ of motion-
similar job duties may qualify as exempt specialists in particular fields of science picture cartoons, or as a retoucher of
learned professionals. However, or learning. When an advanced photographs, since such work is not
accounting clerks, bookkeepers and specialized degree has become a properly described as creative in
other employees who normally perform standard requirement for a particular character.
a great deal of routine work generally occupation, that occupation may have (d) Journalists may satisfy the duties
will not qualify as exempt professionals. acquired the characteristics of a learned requirements for the creative
(6) Chefs. Chefs, such as executive profession. Accrediting and certifying professional exemption if their primary
chefs and sous chefs, who have attained organizations similar to those listed in duty is work requiring invention,
a four-year specialized academic degree paragraphs (e)(1), (e)(3), (e)(4), (e)(8) and imagination, originality or talent, as
in a culinary arts program, generally (e)(9) of this section also may be created opposed to work which depends
meet the duties requirements for the in the future. Such organizations may primarily on intelligence, diligence and
learned professional exemption. The develop similar specialized curriculums accuracy. Employees of newspapers,
learned professional exemption is not and certification programs which, if a magazines, television and other media
available to cooks who perform standard requirement for a particular are not exempt creative professionals if
predominantly routine mental, manual, occupation, may indicate that the they only collect, organize and record
mechanical or physical work. occupation has acquired the information that is routine or already
(7) Paralegals. Paralegals and legal characteristics of a learned profession. public, or if they do not contribute a
assistants generally do not qualify as unique interpretation or analysis to a
§ 541.302 Creative professionals. news product. Thus, for example,
exempt learned professionals because (a) To qualify for the creative newspaper reporters who merely rewrite
an advanced specialized academic professional exemption, an employee’s press releases or who write standard
degree is not a standard prerequisite for primary duty must be the performance recounts of public information by
entry into the field. Although many of work requiring invention, gathering facts on routine community
paralegals possess general four-year imagination, originality or talent in a events are not exempt creative
advanced degrees, most specialized recognized field of artistic or creative professionals. Reporters also do not
paralegal programs are two-year endeavor as opposed to routine mental, qualify as exempt creative professionals
associate degree programs from a manual, mechanical or physical work. if their work product is subject to
community college or equivalent The exemption does not apply to work substantial control by the employer.
institution. However, the learned which can be produced by a person However, journalists may qualify as
professional exemption is available for with general manual or intellectual exempt creative professionals if their
paralegals who possess advanced ability and training. primary duty is performing on the air in
specialized degrees in other professional (b) To qualify for exemption as a radio, television or other electronic
fields and apply advanced knowledge in creative professional, the work media; conducting investigative
that field in the performance of their performed must be ‘‘in a recognized interviews; analyzing or interpreting
duties. For example, if a law firm hires field of artistic or creative endeavor.’’ public events; writing editorials,
an engineer as a paralegal to provide This includes such fields as music, opinion columns or other commentary;
expert advice on product liability cases writing, acting and the graphic arts. or acting as a narrator or commentator.
or to assist on patent matters, that (c) The requirement of ‘‘invention,
engineer would qualify for exemption. imagination, originality or talent’’ § 541.303 Teachers.
(8) Athletic trainers. Athletic trainers distinguishes the creative professions (a) The term ‘‘employee employed in
who have successfully completed four from work that primarily depends on a bona fide professional capacity’’ in
academic years of pre-professional and intelligence, diligence and accuracy. section 13(a)(1) of the Act also means
professional study in a specialized The duties of employees vary widely, any employee with a primary duty of
curriculum accredited by the and exemption as a creative professional teaching, tutoring, instructing or
Commission on Accreditation of Allied depends on the extent of the invention, lecturing in the activity of imparting
Health Education Programs and who are imagination, originality or talent knowledge and who is employed and
certified by the Board of Certification of exercised by the employee. engaged in this activity as a teacher in
the National Athletic Trainers Determination of exempt creative an educational establishment by which
Association Board of Certification professional status, therefore, must be the employee is employed. The term
generally meet the duties requirements made on a case-by-case basis. This ‘‘educational establishment’’ is defined
for the learned professional exemption. requirement generally is met by actors, in § 541.204(b).
(9) Funeral directors or embalmers. musicians, composers, conductors, and (b) Exempt teachers include, but are
Licensed funeral directors and soloists; painters who at most are given not limited to: Regular academic
embalmers who are licensed by and the subject matter of their painting; teachers; teachers of kindergarten or
working in a state that requires cartoonists who are merely told the title nursery school pupils; teachers of gifted
successful completion of four academic or underlying concept of a cartoon and or disabled children; teachers of skilled
years of pre-professional and must rely on their own creative ability and semi-skilled trades and
professional study, including graduation to express the concept; essayists, occupations; teachers engaged in
from a college of mortuary science novelists, short-story writers and screen automobile driving instruction; aircraft
accredited by the American Board of play writers who choose their own flight instructors; home economics
Funeral Service Education, generally subjects and hand in a finished piece of teachers; and vocal or instrumental
music instructors. Those faculty specialists, osteopathic physicians (c) The term ‘‘salary basis’’ is defined
members who are engaged as teachers (doctors of osteopathy), podiatrists, at § 541.602; ‘‘fee basis’’ is defined at
but also spend a considerable amount of dentists (doctors of dental medicine), § 541.605; ‘‘board, lodging or other
their time in extracurricular activities and optometrists (doctors of optometry facilities’’ is defined at § 541.606; and
such as coaching athletic teams or or bachelors of science in optometry). ‘‘primary duty’’ is defined at § 541.700.
acting as moderators or advisors in such (c) Employees engaged in internship
areas as drama, speech, debate or or resident programs, whether or not § 541.401 Computer manufacture and
repair.
journalism are engaged in teaching. licensed to practice prior to
Such activities are a recognized part of commencement of the program, qualify The exemption for employees in
the schools’ responsibility in as exempt professionals if they enter computer occupations does not include
contributing to the educational such internship or resident programs employees engaged in the manufacture
development of the student. after the earning of the appropriate or repair of computer hardware and
(c) The possession of an elementary or degree required for the general practice related equipment. Employees whose
secondary teacher’s certificate provides of their profession. work is highly dependent upon, or
a clear means of identifying the (d) The requirements of § 541.300 and facilitated by, the use of computers and
individuals contemplated as being subpart G (salary requirements) of this computer software programs (e.g.,
within the scope of the exemption for part do not apply to the employees engineers, drafters and others skilled in
teaching professionals. Teachers who described in this section. computer-aided design software), but
possess a teaching certificate qualify for who are not primarily engaged in
the exemption regardless of the Subpart E—Computer Employees computer systems analysis and
terminology (e.g., permanent, programming or other similarly skilled
§ 541.400 General rule for computer
conditional, standard, provisional, computer-related occupations identified
employees.
temporary, emergency, or unlimited) in § 541.400(b), are also not exempt
used by the State to refer to different (a) Computer systems analysts, computer professionals.
kinds of certificates. However, private computer programmers, software
schools and public schools are not engineers or other similarly skilled § 541.402 Executive and administrative
workers in the computer field are computer employees.
uniform in requiring a certificate for
employment as an elementary or eligible for exemption as professionals Computer employees within the scope
secondary school teacher, and a under section 13(a)(1) of the Act and of this exemption, as well as those
teacher’s certificate is not generally under section 13(a)(17) of the Act. employees not within its scope, may
necessary for employment in Because job titles vary widely and also have executive and administrative
institutions of higher education or other change quickly in the computer duties which qualify the employees for
educational establishments. Therefore, a industry, job titles are not determinative exemption under subpart B or subpart C
teacher who is not certified may be of the applicability of this exemption. of this part. For example, systems
(b) The section 13(a)(1) exemption analysts and computer programmers
considered for exemption, provided that
applies to any computer employee generally meet the duties requirements
such individual is employed as a
compensated on a salary or fee basis at for the administrative exemption if their
teacher by the employing school or
a rate of not less than $455 per week (or primary duty includes work such as
school system.
(d) The requirements of § 541.300 and $380 per week, if employed in planning, scheduling, and coordinating
Subpart G (salary requirements) of this American Samoa by employers other activities required to develop systems to
part do not apply to the teaching than the Federal Government), exclusive solve complex business, scientific or
professionals described in this section. of board, lodging or other facilities, and engineering problems of the employer or
the section 13(a)(17) exemption applies the employer’s customers. Similarly, a
§ 541.304 Practice of law or medicine. to any computer employee compensated senior or lead computer programmer
(a) The term ‘‘employee employed in on an hourly basis at a rate not less than who manages the work of two or more
a bona fide professional capacity’’ in $27.63 an hour. In addition, under other programmers in a customarily
section 13(a)(1) of the Act also shall either section 13(a)(1) or section recognized department or subdivision of
mean: 13(a)(17) of the Act, the exemptions the employer, and whose
(1) Any employee who is the holder apply only to computer employees recommendations as to the hiring,
of a valid license or certificate whose primary duty consists of: firing, advancement, promotion or other
permitting the practice of law or (1) The application of systems change of status of the other
medicine or any of their branches and analysis techniques and procedures, programmers are given particular
is actually engaged in the practice including consulting with users, to weight, generally meets the duties
thereof; and determine hardware, software or system requirements for the executive
(2) Any employee who is the holder functional specifications; exemption.
of the requisite academic degree for the (2) The design, development,
general practice of medicine and is documentation, analysis, creation, Subpart F—Outside Sales Employees
engaged in an internship or resident testing or modification of computer
program pursuant to the practice of the systems or programs, including § 541.500 General rule for outside sales
employees.
profession. prototypes, based on and related to user
(b) In the case of medicine, the or system design specifications; (a) The term ‘‘employee employed in
exemption applies to physicians and (3) The design, documentation, the capacity of outside salesman’’ in
other practitioners licensed and testing, creation or modification of section 13(a)(1) of the Act shall mean
practicing in the field of medical computer programs related to machine any employee:
science and healing or any of the operating systems; or (1) Whose primary duty is:
medical specialties practiced by (4) A combination of the (i) making sales within the meaning of
physicians or practitioners. The term aforementioned duties, the performance section 3(k) of the Act, or
‘‘physicians’’ includes medical doctors of which requires the same level of (ii) obtaining orders or contracts for
including general practitioners and skills. services or for the use of facilities for
which a consideration will be paid by places of business.’’ The outside sales consults with the store manager when
the client or customer; and employee is an employee who makes inventory runs low, but does not obtain
(2) Who is customarily and regularly sales at the customer’s place of business a commitment for additional purchases.
engaged away from the employer’s place or, if selling door-to-door, at the The arrangement of merchandise on the
or places of business in performing such customer’s home. Outside sales does not shelves or the replenishing of stock is
primary duty. include sales made by mail, telephone not exempt work unless it is incidental
(b) The term ‘‘primary duty’’ is or the Internet unless such contact is to and in conjunction with the
defined at § 541.700. In determining the used merely as an adjunct to personal employee’s own outside sales. Because
primary duty of an outside sales calls. Thus, any fixed site, whether the employee in this instance does not
employee, work performed incidental to home or office, used by a salesperson as consummate the sale nor direct efforts
and in conjunction with the employee’s a headquarters or for telephonic toward the consummation of a sale, the
own outside sales or solicitations, solicitation of sales is considered one of work is not exempt outside sales work.
including incidental deliveries and the employer’s places of business, even
collections, shall be regarded as exempt though the employer is not in any § 541.504 Drivers who sell.
outside sales work. Other work that formal sense the owner or tenant of the (a) Drivers who deliver products and
furthers the employee’s sales efforts also property. However, an outside sales also sell such products may qualify as
shall be regarded as exempt work employee does not lose the exemption exempt outside sales employees only if
including, for example, writing sales by displaying samples in hotel sample the employee has a primary duty of
reports, updating or revising the rooms during trips from city to city; making sales. In determining the
employee’s sales or display catalogue, these sample rooms should not be primary duty of drivers who sell, work
planning itineraries and attending sales considered as the employer’s places of performed incidental to and in
conferences. business. Similarly, an outside sales conjunction with the employee’s own
(c) The requirements of subpart G employee does not lose the exemption outside sales or solicitations, including
(salary requirements) of this part do not by displaying the employer’s products loading, driving or delivering products,
apply to the outside sales employees at a trade show. If selling actually shall be regarded as exempt outside
described in this section. occurs, rather than just sales promotion, sales work.
trade shows of short duration (i.e., one (b) Several factors should be
§ 541.501 Making sales or obtaining or two weeks) should not be considered considered in determining if a driver
orders. as the employer’s place of business. has a primary duty of making sales,
(a) Section 541.500 requires that the including, but not limited to: a
employee be engaged in: § 541.503 Promotion work. comparison of the driver’s duties with
(1) Making sales within the meaning (a) Promotion work is one type of those of other employees engaged as
of section 3(k) of the Act, or activity often performed by persons who truck drivers and as salespersons;
(2) Obtaining orders or contracts for make sales, which may or may not be possession of a selling or solicitor’s
services or for the use of facilities. exempt outside sales work, depending license when such license is required by
(b) Sales within the meaning of upon the circumstances under which it law or ordinances; presence or absence
section 3(k) of the Act include the is performed. Promotional work that is of customary or contractual
transfer of title to tangible property, and actually performed incidental to and in arrangements concerning amounts of
in certain cases, of tangible and valuable conjunction with an employee’s own products to be delivered; description of
evidences of intangible property. outside sales or solicitations is exempt the employee’s occupation in collective
Section 3(k) of the Act states that ‘‘sale’’ work. On the other hand, promotional bargaining agreements; the employer’s
or ‘‘sell’’ includes any sale, exchange, work that is incidental to sales made, or specifications as to qualifications for
contract to sell, consignment for sale, to be made, by someone else is not hiring; sales training; attendance at sales
shipment for sale, or other disposition. exempt outside sales work. An conferences; method of payment; and
(c) Exempt outside sales work employee who does not satisfy the proportion of earnings directly
includes not only the sales of requirements of this subpart may still attributable to sales.
commodities, but also ‘‘obtaining orders qualify as an exempt employee under (c) Drivers who may qualify as exempt
or contracts for services or for the use other subparts of this rule. outside sales employees include:
of facilities for which a consideration (b) A manufacturer’s representative, (1) A driver who provides the only
will be paid by the client or customer.’’ for example, may perform various types sales contact between the employer and
Obtaining orders for ‘‘the use of of promotional activities such as putting the customers visited, who calls on
facilities’’ includes the selling of time up displays and posters, removing customers and takes orders for products,
on radio or television, the solicitation of damaged or spoiled stock from the who delivers products from stock in the
advertising for newspapers and other merchant’s shelves or rearranging the employee’s vehicle or procures and
periodicals, and the solicitation of merchandise. Such an employee can be delivers the product to the customer on
freight for railroads and other considered an exempt outside sales a later trip, and who receives
transportation agencies. employee if the employee’s primary compensation commensurate with the
(d) The word ‘‘services’’ extends the duty is making sales or contracts. volume of products sold.
outside sales exemption to employees Promotion activities directed toward (2) A driver who obtains or solicits
who sell or take orders for a service, consummation of the employee’s own orders for the employer’s products from
which may be performed for the sales are exempt. Promotional activities persons who have authority to commit
customer by someone other than the designed to stimulate sales that will be the customer for purchases.
person taking the order. made by someone else are not exempt (3) A driver who calls on new
outside sales work. prospects for customers along the
§ 541.502 Away from employer’s place of (c) Another example is a company employee’s route and attempts to
business. representative who visits chain stores, convince them of the desirability of
An outside sales employee must be arranges the merchandise on shelves, accepting regular delivery of goods.
customarily and regularly engaged replenishes stock by replacing old with (4) A driver who calls on established
‘‘away from the employer’s place or new merchandise, sets up displays and customers along the route and
persuades regular customers to accept salary for teachers in the educational based upon past sales that the employee
delivery of increased amounts of goods establishment by which the employee is also will earn $20,000 in commissions.
or of new products, even though the employed, as provided in However, due to poor sales in the final
initial sale or agreement for delivery § 541.204(a)(1). quarter of the year, the employee
was made by someone else. (d) In the case of computer actually only earns $10,000 in
(d) Drivers who generally would not employees, the compensation commissions. In this situation, the
qualify as exempt outside sales requirement also may be met by employer may within one month after
employees include: compensation on an hourly basis at a the end of the year make a payment of
(1) A route driver whose primary duty rate not less than $27.63 an hour, as at least $10,000 to the employee. Any
is to transport products sold by the provided in § 541.400(b). such final payment made after the end
employer through vending machines (e) In the case of professional of the 52-week period may count only
and to keep such machines stocked, in employees, the compensation toward the prior year’s total annual
good operating condition, and in good requirements in this section shall not compensation and not toward the total
locations. apply to employees engaged as teachers annual compensation in the year it was
(2) A driver who often calls on (see § 541.303); employees who hold a paid. If the employer fails to make such
established customers day after day or valid license or certificate permitting a payment, the employee does not
week after week, delivering a quantity of the practice of law or medicine or any qualify as a highly compensated
the employer’s products at each call of their branches and are actually employee, but may still qualify as
when the sale was not significantly engaged in the practice thereof (see exempt under subparts B, C or D of this
affected by solicitations of the customer § 541.304); or to employees who hold part.
by the delivering driver or the amount the requisite academic degree for the (3) An employee who does not work
of the sale is determined by the volume general practice of medicine and are a full year for the employer, either
of the customer’s sales since the engaged in an internship or resident because the employee is newly hired
previous delivery. program pursuant to the practice of the after the beginning of the year or ends
(3) A driver primarily engaged in profession (see § 541.304). In the case of the employment before the end of the
making deliveries to customers and medical occupations, the exception year, may qualify for exemption under
performing activities intended to from the salary or fee requirement does this section if the employee receives a
promote sales by customers (including not apply to pharmacists, nurses, pro rata portion of the minimum
placing point-of-sale and other therapists, technologists, sanitarians, amount established in paragraph (a) of
advertising materials, price stamping dietitians, social workers, psychologists, this section, based upon the number of
commodities, arranging merchandise on psychometrists, or other professions weeks that the employee will be or has
shelves, in coolers or in cabinets, which service the medical profession. been employed. An employer may make
rotating stock according to date, and one final payment as under paragraph
§ 541.601 Highly compensated employees. (b)(2) of this section within one month
cleaning and otherwise servicing
display cases), unless such work is in (a) An employee with total annual after the end of employment.
furtherance of the driver’s own sales compensation of at least $100,000 is (4) The employer may utilize any 52-
efforts. deemed exempt under section 13(a)(1) week period as the year, such as a
of the Act if the employee customarily calendar year, a fiscal year, or an
Subpart G—Salary Requirements and regularly performs any one or more anniversary of hire year. If the employer
of the exempt duties or responsibilities does not identify some other year period
§ 541.600 Amount of salary required. of an executive, administrative or in advance, the calendar year will
(a) To qualify as an exempt executive, professional employee identified in apply.
administrative or professional employee subparts B, C or D of this part. (c) A high level of compensation is a
under section 13(a)(1) of the Act, an (b) (1) ‘‘Total annual compensation’’ strong indicator of an employee’s
employee must be compensated on a must include at least $455 per week exempt status, thus eliminating the need
salary basis at a rate of not less than paid on a salary or fee basis. Total for a detailed analysis of the employee’s
$455 per week (or $380 per week, if annual compensation may also include job duties. Thus, a highly compensated
employed in American Samoa by commissions, nondiscretionary bonuses employee will qualify for exemption if
employers other than the Federal and other nondiscretionary the employee customarily and regularly
Government), exclusive of board, compensation earned during a 52-week performs any one or more of the exempt
lodging or other facilities. period. Total annual compensation does duties or responsibilities of an
Administrative and professional not include board, lodging and other executive, administrative or
employees may also be paid on a fee facilities as defined in § 541.606, and professional employee identified in
basis, as defined in § 541.605. does not include payments for medical subparts B, C or D of this part. An
(b) The $455 a week may be translated insurance, payments for life insurance, employee may qualify as a highly
into equivalent amounts for periods contributions to retirement plans and compensated executive employee, for
longer than one week. The requirement the cost of other fringe benefits. example, if the employee customarily
will be met if the employee is (2) If an employee’s total annual and regularly directs the work of two or
compensated biweekly on a salary basis compensation does not total at least the more other employees, even though the
of $910, semimonthly on a salary basis minimum amount established in employee does not meet all of the other
of $985.83, or monthly on a salary basis paragraph (a) of this section by the last requirements for the executive
of $1,971.66. However, the shortest pay period of the 52-week period, the exemption under § 541.100.
period of payment that will meet this employer may, during the last pay (d) This section applies only to
compensation requirement is one week. period or within one month after the employees whose primary duty includes
(c) In the case of academic end of the 52-week period, make one performing office or non-manual work.
administrative employees, the final payment sufficient to achieve the Thus, for example, non-management
compensation requirement also may be required level. For example, an production-line workers and non-
met by compensation on a salary basis employee may earn $80,000 in base management employees in maintenance,
at a rate at least equal to the entrance salary, and the employer may anticipate construction and similar occupations
such as carpenters, electricians, the employee receives compensation actually worked in the first and last
mechanics, plumbers, iron workers, under the plan, policy or practice. week of employment. In such weeks, the
craftsmen, operating engineers, Deductions for such full-day absences payment of an hourly or daily
longshoremen, construction workers, also may be made before the employee equivalent of the employee’s full salary
laborers and other employees who has qualified under the plan, policy or for the time actually worked will meet
perform work involving repetitive practice, and after the employee has the requirement. However, employees
operations with their hands, physical exhausted the leave allowance are not paid on a salary basis within the
skill and energy are not exempt under thereunder. Thus, for example, if an meaning of these regulations if they are
this section no matter how highly paid employer maintains a short-term employed occasionally for a few days,
they might be. disability insurance plan providing and the employer pays them a
salary replacement for 12 weeks starting proportionate part of the weekly salary
§ 541.602 Salary basis. on the fourth day of absence, the when so employed.
(a) General rule. An employee will be employer may make deductions from (7) An employer is not required to pay
considered to be paid on a ‘‘salary basis’’ pay for the three days of absence before the full salary for weeks in which an
within the meaning of these regulations the employee qualifies for benefits exempt employee takes unpaid leave
if the employee regularly receives each under the plan; for the twelve weeks in under the Family and Medical Leave
pay period on a weekly, or less frequent which the employee receives salary Act. Rather, when an exempt employee
basis, a predetermined amount replacement benefits under the plan; takes unpaid leave under the Family
constituting all or part of the employee’s and for absences after the employee has and Medical Leave Act, an employer
compensation, which amount is not exhausted the 12 weeks of salary may pay a proportionate part of the full
subject to reduction because of replacement benefits. Similarly, an salary for time actually worked. For
variations in the quality or quantity of employer may make deductions from example, if an employee who normally
the work performed. Subject to the pay for absences of one or more full works 40 hours per week uses four
exceptions provided in paragraph (b) of days if salary replacement benefits are hours of unpaid leave under the Family
this section, an exempt employee must provided under a State disability and Medical Leave Act, the employer
receive the full salary for any week in insurance law or under a State workers’ could deduct 10 percent of the
which the employee performs any work compensation law. employee’s normal salary that week.
without regard to the number of days or (3) While an employer cannot make (c) When calculating the amount of a
hours worked. Exempt employees need deductions from pay for absences of an deduction from pay allowed under
not be paid for any workweek in which exempt employee occasioned by jury paragraph (b) of this section, the
they perform no work. An employee is duty, attendance as a witness or employer may use the hourly or daily
not paid on a salary basis if deductions temporary military leave, the employer equivalent of the employee’s full weekly
from the employee’s predetermined can offset any amounts received by an salary or any other amount proportional
compensation are made for absences employee as jury fees, witness fees or to the time actually missed by the
occasioned by the employer or by the military pay for a particular week employee. A deduction from pay as a
operating requirements of the business. against the salary due for that particular penalty for violations of major safety
If the employee is ready, willing and week without loss of the exemption. rules under paragraph (b)(4) of this
able to work, deductions may not be (4) Deductions from pay of exempt section may be made in any amount.
made for time when work is not employees may be made for penalties
available. imposed in good faith for infractions of § 541.603 Effect of improper deductions
(b) Exceptions. The prohibition safety rules of major significance. Safety from salary.
against deductions from pay in the rules of major significance include those (a) An employer who makes improper
salary basis requirement is subject to the relating to the prevention of serious deductions from salary shall lose the
following exceptions: danger in the workplace or to other exemption if the facts demonstrate that
(1) Deductions from pay may be made employees, such as rules prohibiting the employer did not intend to pay
when an exempt employee is absent smoking in explosive plants, oil employees on a salary basis. An actual
from work for one or more full days for refineries and coal mines. practice of making improper deductions
personal reasons, other than sickness or (5) Deductions from pay of exempt demonstrates that the employer did not
disability. Thus, if an employee is employees may be made for unpaid intend to pay employees on a salary
absent for two full days to handle disciplinary suspensions of one or more basis. The factors to consider when
personal affairs, the employee’s salaried full days imposed in good faith for determining whether an employer has
status will not be affected if deductions infractions of workplace conduct rules. an actual practice of making improper
are made from the salary for two full- Such suspensions must be imposed deductions include, but are not limited
day absences. However, if an exempt pursuant to a written policy applicable to: the number of improper deductions,
employee is absent for one and a half to all employees. Thus, for example, an particularly as compared to the number
days for personal reasons, the employer employer may suspend an exempt of employee infractions warranting
can deduct only for the one full-day employee without pay for three days for discipline; the time period during
absence. violating a generally applicable written which the employer made improper
(2) Deductions from pay may be made policy prohibiting sexual harassment. deductions; the number and geographic
for absences of one or more full days Similarly, an employer may suspend an location of employees whose salary was
occasioned by sickness or disability exempt employee without pay for improperly reduced; the number and
(including work-related accidents) if the twelve days for violating a generally geographic location of managers
deduction is made in accordance with a applicable written policy prohibiting responsible for taking the improper
bona fide plan, policy or practice of workplace violence. deductions; and whether the employer
providing compensation for loss of (6) An employer is not required to pay has a clearly communicated policy
salary occasioned by such sickness or the full salary in the initial or terminal permitting or prohibiting improper
disability. The employer is not required week of employment. Rather, an deductions.
to pay any portion of the employee’s employer may pay a proportionate part (b) If the facts demonstrate that the
salary for full-day absences for which of an employee’s full salary for the time employer has an actual practice of
making improper deductions, the of at least the minimum weekly- of the time required for its completion.
exemption is lost during the time period required amount paid on a salary basis. These payments resemble piecework
in which the improper deductions were Thus, for example, an exempt employee payments with the important distinction
made for employees in the same job guaranteed at least $455 each week paid that generally a ‘‘fee’’ is paid for the kind
classification working for the same on a salary basis may also receive of job that is unique rather than for a
managers responsible for the actual additional compensation of a one series of jobs repeated an indefinite
improper deductions. Employees in percent commission on sales. An number of times and for which payment
different job classifications or who work exempt employee also may receive a on an identical basis is made over and
for different managers do not lose their percentage of the sales or profits of the over again. Payments based on the
status as exempt employees. Thus, for employer if the employment number of hours or days worked and
example, if a manager at a company arrangement also includes a guarantee not on the accomplishment of a given
facility routinely docks the pay of of at least $455 each week paid on a single task are not considered payments
engineers at that facility for partial-day salary basis. Similarly, the exemption is on a fee basis.
personal absences, then all engineers at not lost if an exempt employee who is (b) To determine whether the fee
that facility whose pay could have been guaranteed at least $455 each week paid payment meets the minimum amount of
improperly docked by the manager on a salary basis also receives additional salary required for exemption under
would lose the exemption; engineers at compensation based on hours worked these regulations, the amount paid to
other facilities or working for other for work beyond the normal workweek. the employee will be tested by
managers, however, would remain Such additional compensation may be determining the time worked on the job
exempt. paid on any basis (e.g., flat sum, bonus and whether the fee payment is at a rate
(c) Improper deductions that are payment, straight-time hourly amount, that would amount to at least $455 per
either isolated or inadvertent will not time and one-half or any other basis), week if the employee worked 40 hours.
result in loss of the exemption for any and may include paid time off. Thus, an artist paid $250 for a picture
employees subject to such improper (b) An exempt employee’s earnings that took 20 hours to complete meets the
deductions, if the employer reimburses may be computed on an hourly, a daily minimum salary requirement for
the employees for such improper or a shift basis, without losing the exemption since earnings at this rate
deductions. exemption or violating the salary basis would yield the artist $500 if 40 hours
(d) If an employer has a clearly requirement, if the employment were worked.
communicated policy that prohibits the arrangement also includes a guarantee
improper pay deductions specified in § 541.606 Board, lodging or other facilities.
of at least the minimum weekly required
§ 541.602(a) and includes a complaint amount paid on a salary basis regardless (a) To qualify for exemption under
mechanism, reimburses employees for of the number of hours, days or shifts section 13(a)(1) of the Act, an employee
any improper deductions and makes a worked, and a reasonable relationship must earn the minimum salary amount
good faith commitment to comply in the exists between the guaranteed amount set forth in § 541.600, ‘‘exclusive of
future, such employer will not lose the and the amount actually earned. The board, lodging or other facilities.’’ The
exemption for any employees unless the reasonable relationship test will be met phrase ‘‘exclusive of board, lodging or
employer willfully violates the policy if the weekly guarantee is roughly other facilities’’ means ‘‘free and clear’’
by continuing to make improper equivalent to the employee’s usual or independent of any claimed credit for
deductions after receiving employee earnings at the assigned hourly, daily or non-cash items of value that an
complaints. If an employer fails to shift rate for the employee’s normal employer may provide to an employee.
reimburse employees for any improper scheduled workweek. Thus, for Thus, the costs incurred by an employer
deductions or continues to make example, an exempt employee to provide an employee with board,
improper deductions after receiving guaranteed compensation of at least lodging or other facilities may not count
employee complaints, the exemption is $500 for any week in which the towards the minimum salary amount
lost during the time period in which the employee performs any work, and who required for exemption under this part
improper deductions were made for normally works four or five shifts each 541. Such separate transactions are not
employees in the same job classification week, may be paid $150 per shift prohibited between employers and their
working for the same managers without violating the salary basis exempt employees, but the costs to
responsible for the actual improper requirement. The reasonable employers associated with such
deductions. The best evidence of a relationship requirement applies only if transactions may not be considered
clearly communicated policy is a the employee’s pay is computed on an when determining if an employee has
written policy that was distributed to hourly, daily or shift basis. It does not received the full required minimum
employees prior to the improper pay apply, for example, to an exempt store salary payment.
deductions by, for example, providing a manager paid a guaranteed salary of (b) Regulations defining what
copy of the policy to employees at the $650 per week who also receives a constitutes ‘‘board, lodging, or other
time of hire, publishing the policy in an commission of one-half percent of all facilities’’ are contained in 29 CFR part
employee handbook or publishing the sales in the store or five percent of the 531. As described in 29 CFR 531.32, the
policy on the employer’s Intranet. store’s profits, which in some weeks term ‘‘other facilities’’ refers to items
(e) This section shall not be construed may total as much as, or even more similar to board and lodging, such as
in an unduly technical manner so as to than, the guaranteed salary. meals furnished at company restaurants
defeat the exemption. or cafeterias or by hospitals, hotels, or
§ 541.605 Fee basis. restaurants to their employees; meals,
§ 541.604 Minimum guarantee plus extras. (a) Administrative and professional dormitory rooms, and tuition furnished
(a) An employer may provide an employees may be paid on a fee basis, by a college to its student employees;
exempt employee with additional rather than on a salary basis. An merchandise furnished at company
compensation without losing the employee will be considered to be paid stores or commissaries, including
exemption or violating the salary basis on a ‘‘fee basis’’ within the meaning of articles of food, clothing, and household
requirement, if the employment these regulations if the employee is paid effects; housing furnished for dwelling
arrangement also includes a guarantee an agreed sum for a single job regardless purposes; and transportation furnished
to employees for ordinary commuting be greater than occasional but which, of (4) A supervisor who sets up a
between their homes and work. course, may be less than constant. Tasks machine may be engaged in exempt
or work performed ‘‘customarily and work, depending upon the nature of the
Subpart H—Definitions and regularly’’ includes work normally and industry and the operation. In some
Miscellaneous Provisions recurrently performed every workweek; cases the setup work, or adjustment of
it does not include isolated or one-time the machine for a particular job, is
§ 541.700 Primary duty.
tasks. typically performed by the same
(a) To qualify for exemption under employees who operate the machine.
this part, an employee’s ‘‘primary duty’’ § 541.702 Exempt and nonexempt work. Such setup work is part of the
must be the performance of exempt The term ‘‘exempt work’’ means all production operation and is not exempt.
work. The term ‘‘primary duty’’ means work described in §§ 541.100, 541.101, In other cases, the setting up of the work
the principal, main, major or most 541.200, 541.300, 541.301, 541.302, is a highly skilled operation which the
important duty that the employee 541.303, 541.304, 541.400 and 541.500, ordinary production worker or machine
performs. Determination of an and the activities directly and closely tender typically does not perform. In
employee’s primary duty must be based related to such work. All other work is large plants, non-supervisors may
on all the facts in a particular case, with considered ‘‘nonexempt.’’ perform such work. However,
the major emphasis on the character of particularly in small plants, such work
the employee’s job as a whole. Factors § 541.703 Directly and closely related.
may be a regular duty of the executive
to consider when determining the (a) Work that is ‘‘directly and closely and is directly and closely related to the
primary duty of an employee include, related’’ to the performance of exempt executive’s responsibility for the work
but are not limited to, the relative work is also considered exempt work. performance of subordinates and for the
importance of the exempt duties as The phrase ‘‘directly and closely adequacy of the final product. Under
compared with other types of duties; the related’’ means tasks that are related to such circumstances, it is exempt work.
amount of time spent performing exempt duties and that contribute to or (5) A department manager in a retail
exempt work; the employee’s relative facilitate performance of exempt work. or service establishment who walks
freedom from direct supervision; and Thus, ‘‘directly and closely related’’ about the sales floor observing the work
the relationship between the employee’s work may include physical tasks and of sales personnel under the employee’s
salary and the wages paid to other menial tasks that arise out of exempt supervision to determine the
employees for the kind of nonexempt duties, and the routine work without effectiveness of their sales techniques,
work performed by the employee. which the exempt employee’s exempt checks on the quality of customer
(b) The amount of time spent work cannot be performed properly. service being given, or observes
performing exempt work can be a useful Work ‘‘directly and closely related’’ to customer preferences is performing
guide in determining whether exempt the performance of exempt duties may work which is directly and closely
work is the primary duty of an also include recordkeeping; monitoring related to managerial and supervisory
employee. Thus, employees who spend and adjusting machinery; taking notes; functions.
more than 50 percent of their time using the computer to create documents (6) A business consultant may take
performing exempt work will generally or presentations; opening the mail for extensive notes recording the flow of
satisfy the primary duty requirement. the purpose of reading it and making work and materials through the office or
Time alone, however, is not the sole decisions; and using a photocopier or plant of the client; after returning to the
test, and nothing in this section requires fax machine. Work is not ‘‘directly and office of the employer, the consultant
that exempt employees spend more than closely related’’ if the work is remotely may personally use the computer to
50 percent of their time performing related or completely unrelated to type a report and create a proposed table
exempt work. Employees who do not exempt duties. of organization. Standing alone, or
spend more than 50 percent of their (b) The following examples further separated from the primary duty, such
time performing exempt duties may illustrate the type of work that is and is note-taking and typing would be routine
nonetheless meet the primary duty not normally considered as directly and in nature. However, because this work
requirement if the other factors support closely related to exempt work: is necessary for analyzing the data and
such a conclusion. (1) Keeping time, production or sales making recommendations, the work is
(c) Thus, for example, assistant records for subordinates is work directly directly and closely related to exempt
managers in a retail establishment who and closely related to an exempt work. While it is possible to assign note-
perform exempt executive work such as executive’s function of managing a taking and typing to nonexempt
supervising and directing the work of department and supervising employees. employees, and in fact it is frequently
other employees, ordering merchandise, (2) The distribution of materials, the practice to do so, delegating such
managing the budget and authorizing merchandise or supplies to maintain routine tasks is not required as a
payment of bills may have management control of the flow of and expenditures condition of exemption.
as their primary duty even if the for such items is directly and closely (7) A credit manager who makes and
assistant managers spend more than 50 related to the performance of exempt administers the credit policy of the
percent of the time performing duties. employer, establishes credit limits for
nonexempt work such as running the (3) A supervisor who spot checks and customers, authorizes the shipment of
cash register. However, if such assistant examines the work of subordinates to orders on credit, and makes decisions
managers are closely supervised and determine whether they are performing on whether to exceed credit limits
earn little more than the nonexempt their duties properly, and whether the would be performing work exempt
employees, the assistant managers product is satisfactory, is performing under § 541.200. Work that is directly
generally would not satisfy the primary work which is directly and closely and closely related to these exempt
duty requirement. related to managerial and supervisory duties may include checking the status
functions, so long as the checking is of accounts to determine whether the
§ 541.701 Customarily and regularly. distinguishable from the work credit limit would be exceeded by the
The phrase ‘‘customarily and ordinarily performed by a nonexempt shipment of a new order, removing
regularly’’ means a frequency that must inspector. credit reports from the files for analysis,
and writing letters giving credit data professional, outside sales or computer employee; whether the exempt
and experience to other employers or employee. employee performs the task frequently
credit agencies. or occasionally; and existence of an
(8) A traffic manager in charge of § 541.706 Emergencies. industry practice for the exempt
planning a company’s transportation, (a) An exempt employee will not lose employee to perform the task.
including the most economical and the exemption by performing work of a
quickest routes for shipping normally nonexempt nature because of § 541.708 Combination exemptions.
merchandise to and from the plant, the existence of an emergency. Thus, Employees who perform a
contracting for common-carrier and when emergencies arise that threaten combination of exempt duties as set
other transportation facilities, the safety of employees, a cessation of forth in the regulations in this part for
negotiating with carriers for adjustments operations or serious damage to the executive, administrative, professional,
for damages to merchandise, and employer’s property, any work outside sales and computer employees
making the necessary rearrangements performed in an effort to prevent such may qualify for exemption. Thus, for
resulting from delays, damages or results is considered exempt work. example, an employee whose primary
irregularities in transit, is performing (b) An ‘‘emergency’’ does not include duty involves a combination of exempt
exempt work. If the employee also occurrences that are not beyond control administrative and exempt executive
spends part of the day taking telephone or for which the employer can work may qualify for exemption. In
orders for local deliveries, such order- reasonably provide in the normal course other words, work that is exempt under
taking is a routine function and is not of business. Emergencies generally one section of this part will not defeat
directly and closely related to the occur only rarely, and are events that the exemption under any other section.
exempt work. the employer cannot reasonably
anticipate. § 541.709 Motion picture producing
(9) An example of work directly and industry.
closely related to exempt professional (c) The following examples illustrate
duties is a chemist performing menial the distinction between emergency work The requirement that the employee be
tasks such as cleaning a test tube in the considered exempt work and routine paid ‘‘on a salary basis’’ does not apply
middle of an original experiment, even work that is not exempt work: to an employee in the motion picture
though such menial tasks can be (1) A mine superintendent who producing industry who is compensated
assigned to laboratory assistants. pitches in after an explosion and digs at a base rate of at least $695 a week
(10) A teacher performs work directly out workers who are trapped in the (exclusive of board, lodging, or other
and closely related to exempt duties mine is still a bona fide executive. facilities). Thus, an employee in this
when, while taking students on a field (2) Assisting nonexempt employees industry who is otherwise exempt under
trip, the teacher drives a school van or with their work during periods of heavy subparts B, C or D of this part, and who
monitors the students’ behavior in a workload or to handle rush orders is not is employed at a base rate of at least
restaurant. exempt work. $695 a week is exempt if paid a
(3) Replacing a nonexempt employee proportionate amount (based on a week
§ 541.704 Use of manuals. during the first day or partial day of an of not more than 6 days) for any week
The use of manuals, guidelines or illness may be considered exempt in which the employee does not work a
other established procedures containing emergency work depending on factors full workweek for any reason. Moreover,
or relating to highly technical, scientific, such as the size of the establishment an otherwise exempt employee in this
legal, financial or other similarly and of the executive’s department, the industry qualifies for exemption if the
complex matters that can be understood nature of the industry, the consequences employee is employed at a daily rate
or interpreted only by those with that would flow from the failure to under the following circumstances:
advanced or specialized knowledge or replace the ailing employee (a) The employee is in a job category
skills does not preclude exemption immediately, and the feasibility of for which a weekly base rate is not
under section 13(a)(1) of the Act or the filling the employee’s place promptly. provided and the daily base rate would
regulations in this part. Such manuals (4) Regular repair and cleaning of yield at least $695 if 6 days were
and procedures provide guidance in equipment is not emergency work, even worked; or
addressing difficult or novel when necessary to prevent fire or (b) The employee is in a job category
circumstances and thus use of such explosion; however, repairing having a weekly base rate of at least
reference material would not affect an equipment may be emergency work if $695 and the daily base rate is at least
employee’s exempt status. The section the breakdown of or damage to the one-sixth of such weekly base rate.
13(a)(1) exemptions are not available, equipment was caused by accident or
§ 541.710 Employees of public agencies.
however, for employees who simply carelessness that the employer could not
apply well-established techniques or reasonably anticipate. (a) An employee of a public agency
procedures described in manuals or who otherwise meets the salary basis
§ 541.707 Occasional tasks. requirements of § 541.602 shall not be
other sources within closely prescribed
limits to determine the correct response Occasional, infrequently recurring disqualified from exemption under
to an inquiry or set of circumstances. tasks that cannot practicably be §§ 541.100, 541.200, 541.300 or 541.400
performed by nonexempt employees, on the basis that such employee is paid
§ 541.705 Trainees. but are the means for an exempt according to a pay system established by
The executive, administrative, employee to properly carry out exempt statute, ordinance or regulation, or by a
professional, outside sales and functions and responsibilities, are policy or practice established pursuant
computer employee exemptions do not considered exempt work. The following to principles of public accountability,
apply to employees training for factors should be considered in under which the employee accrues
employment in an executive, determining whether such work is personal leave and sick leave and which
administrative, professional, outside exempt work: Whether the same work is requires the public agency employee’s
sales or computer employee capacity performed by any of the exempt pay to be reduced or such employee to
who are not actually performing the employee’s subordinates; practicability be placed on leave without pay for
duties of an executive, administrative, of delegating the work to a nonexempt absences for personal reasons or because
of illness or injury of less than one (3) The employee chooses to use leave employee from being paid on a salary
work-day when accrued leave is not without pay. basis except in the workweek in which
used by an employee because: (b) Deductions from the pay of an the furlough occurs and for which the
(1) Permission for its use has not been employee’s pay is accordingly reduced.
employee of a public agency for
sought or has been sought and denied;
(2) Accrued leave has been exhausted; absences due to a budget-required [FR Doc. 04–9016 Filed 4–20–04; 10:40 am]
or furlough shall not disqualify the BILLING CODE 4510–27–P

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Friday,

April 23, 2004

Wage and Hour Division

29 CFR Part 541

541.304 Practice of law or medicine. B; administrative employees, subpart C;

include within the protection of the

the United States Equal Employment

§ 541.1 Terms used in regulations.

OUTSIDE SALES EMPLOYEES 541.709 Motion picture producing industry.

541.0 Introductory statement.

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