In eight hundred words or fewer, provide a thorough legal analysis (preferably using the suggested “IRAC” format) of the legal issue presented related to the case with format attached.
THE FORMAT AND GRADING WEIGHT ARE MENTION IN THE ATTACHED FILES.
Don't use plagiarized sources. Get Your Custom Essay on
MANAGEMENT EMPLOYMENT LAW
Just from $13/Page
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MANA 4320.001
2020 Spring – Exam #2
Issue
The issue is whether any of the FLSA exemptions apply to any/all of the four new jobs at FFE, respectively.
Rule(s)
The most pertinent law governing the issue is 29 C.F.R. §§ 541.0-541.710.
General Manager
Analysis/Application:
Conclusion:
Assistant Manager
Analysis/Application:
Conclusion:
Shift Supervisor
Analysis/Application:
Conclusion:
Outside Retail Sales
Analysis/Application:
Conclusion:
MANA 4320.001 (2020 Spring)
Exam #2 (Page 1 of 3)
Welcome to the second examination for Employment Law (MANA 4320.001)!
The exam is due at https://uta.instructure.com/courses/45489/assignments/556650 no
later than 11:59pm on Friday, March 20, 2020. A student’s grade on this examination
will be reduced by 5% for every twelve hours that the exam is late (e.g., minus 5% if
submitted by noon on 3/21, minus 10% [total] if submitted by 11:59pm on 3/21, minus
15% [total] if submitted by noon on 3/22, etc.).
Please submit the examination in a x file using the template provided at
https://uta.instructure.com/courses/45489/assignments/556650.
This examination is setup in Canvas for anonymous grading. Please do not put your name
or any other identifying information in your exam submissions. There is a place in the
header of the response template for you to put your UTA ID number.
Your analyses of the case and the creation of your written submission should be your
own independent work. However, this is a take-home exam. So, a little more clarity
might be needed…
I think these types of behaviors are perfectly acceptable:
• The use of any and all non-human resources (e.g., printed materials, hypertext and
hypermedia materials, audio recordings, video records, works of art, etc.) –
assuming that direct quotations are identified and cited and assuming that any big
ideas from sources other than your own original analysis are cited. You may use
any of the standard citation systems that you like, as long as it’s one of these: APA,
MLA, Chicago, Turabian, Bluebook, Harvard, McGill, ALWD, Tanbook,
Greenbook, Maroonbook, OSCOLA, AAA, or APSA – either in-text or in
footnotes.
• Using the services of the UTA Writing Center – provided that you disclose that
you are working on an examination and you provide the tutor with a complete copy
of this exam document.
• Receiving assistance in finding sources from a university librarian – provided that
you disclose that you are working on an examination and you provide the librarian
with a complete copy of this exam document.
https://uta.instructure.com/courses/45489/assignments/556650
https://uta.instructure.com/courses/45489/assignments/556650
http://www.uta.edu/owl/
MANA 4320.001 (2020 Spring)
Exam #2 (Page 2 of 3)
• Receiving technical assistance from the UTA OIT Help Desk, Canvas Support,
or/and Nexis Uni Support.
• Sharing non-human resources (e.g., printed materials, hypertext and hypermedia
materials, audio recordings, video records, works of art, etc.) with other students in
the class.
• Receiving non-human resources (e.g., printed materials, hypertext and hypermedia
materials, audio recordings, video records, works of art, etc.) from other students in
the class.
• Discussing the exam’s content with other students in the class.
Here are the relative weights of the exam components:
Component Percent
(You’re welcome.) Issue 10 % Rule 10 %
General Manager Analysis/Application 15 % Conclusion 5 %
Assistant Manager Analysis/Application 15 % Conclusion 5 %
Shift Supervisor Analysis/Application 15 % Conclusion 5 %
Outside Retail Salesperson Analysis/Application 15 % Conclusion 5 %
See the University’s statements on Academic Integrity, Acknowledging Sources, and the
UTA Library’s Tutorial on Plagiarism.
Once class adjourns on March 5, 2020, Graca will not communicate with anyone with
respect to any aspect of the exam until 8:00am on March 24, 2020.
Good luck!
https://oit.uta.edu/support/
https://cases.canvaslms.com/liveagentchat?chattype=student
https://www.lexisnexis.com/en-us/support/nexis-uni/default.page
https://www.uta.edu/conduct/academic-integrity/index.php
https://library.uta.edu/plagiarism/
https://libguides.uta.edu/researchprocess/plagiarism
MANA 4320.001 (2020 Spring)
Exam #2 (Page 3 of 3)
Fun at Flowering Fern
Flowering Fern Enterprises has been in the landscaping wholesale business for some
time. Given their success as wholesalers, they are now trying their hand at retail
landscaping sales (think: Calloway’s or the Lawn & Garden department at Lowe’s or the
Garden Center at Home Depot).
Your colleague Ellen Kassman has prepared job descriptions and specifications for four
new positions that Flowering Fern needed to create: 1) Retail Store General Manager, 2)
Assistant Manager, 3) Shift Supervisor, and 4) Outside Salesperson. They are attached.
Unfortunately, Ellen forgot to include the FLSA Wage Category on all four positions.
And she is now quarantined on a COVID-19-infested cruise ship at the Port of Tunis. She
doesn’t have access to the Internet or any communication technologies. But you heard
about the quarantine on the news and you actually saw her on the deck of the cruise ship
in some B-roll from a CNN helicopter.
So, the task has been left to you to analyze the position descriptions and specifications in
light of 29 C.F.R. §§ 541.0-541.710 (also attached) and determine the correct FLSA
Wage Category (i.e., whether any exemption applies). Your company’s chief human
resource officer asked that your analysis and conclusion for each position not exceed 200
words (200 words per job * 4 jobs = 800 words total).
(The attached template contains the “legal issue” and the “rule(s)” since the Flowering
Fern has done this type of analysis before, albeit with wholesale, rather than retail,
positions. The stuff already in the template totals 51 words, so I guess the document
should contain no more than 851 words (i.e., [200 words per job * 4 jobs] + 51 words in
the template = 851 words total maximum). The CHRO is a stickler for word limits!)
Since the CHRO was delayed in getting this assignment to you, he has extended the
deadline to 11:59pm on Friday, March 20, 2020.
Good luck!
Home
https://www.lowes.com/l/lawn-garden.html
https://www.homedepot.com/b/Outdoors-Garden-Center/N-5yc1vZbx6k
Position RS-000101 (Page 1 of 7)
2020 March 2 – EK
Flowering Fern Enterprises
Integrated Job Description and Job Specification
1) Job Title:
a. (Retail Store) “General Manager”
2) Position Number:
a. RS-000101
3) FLSA Wage Category:
a. ???
4) Wage or salary:
a. $1,500.00 weekly plus non-discretionary bonuses and profit-sharing based upon
retail store performance.
5) Position Last Analyzed:
a. Date:
• 2020 March 2
b. Analyst:
• Ellen Kassman
6) Reports to:
a. President and CEO.
7) Direct Reports:
a. All retail store employees at Flowering Fern Enterprises report directly to the
Retail Store General Manager. Typically, 30-50 employees.
8) Job Description
a. Summary
• Plan, direct, or coordinate the operations of a Flowering Fern retail
store. Duties and responsibilities include formulating policies, managing
daily operations, and planning the use of material and human resources.
b. Principal Work Activities
• Making Decisions and Solving Problems — Analyzing information and
evaluating results to choose the best solution and solve problems.
• Communicating with Supervisors, Peers, or Subordinates — Providing
information to supervisors, co-workers, and subordinates by telephone, in
written form, e-mail, or in person.
Position RS-000101 (Page 2 of 7)
2020 March 2 – EK
• Getting Information — Observing, receiving, and otherwise obtaining
information from all relevant sources.
• Coordinating the Work and Activities of Others — Getting members of a
group to work together to accomplish tasks.
• Guiding, Directing, and Motivating Subordinates — Providing guidance
and direction to subordinates, including setting performance standards
and monitoring performance.
• Identifying Objects, Actions, and Events — Identifying information by
categorizing, estimating, recognizing differences or similarities, and
detecting changes in circumstances or events.
• Interacting with Computers — Using computers and computer systems
(including hardware and software) to program, write software, set up
functions, enter data, or process information.
• Judging the Qualities of Things, Services, or People — Assessing the
value, importance, or quality of things or people.
• Monitor Processes, Materials, or Surroundings — Monitoring and
reviewing information from materials, events, or the environment, to
detect or assess problems.
• Organizing, Planning, and Prioritizing Work — Developing specific
goals and plans to prioritize, organize, and accomplish your work.
• Developing and Building Teams — Encouraging and building mutual
trust, respect, and cooperation among team members.
• Evaluating Information to Determine Compliance with Standards —
Using relevant information and individual judgment to determine
whether events or processes comply with laws, regulations, or standards.
• Establishing and Maintaining Interpersonal Relationships — Developing
constructive and cooperative working relationships with others and
maintaining them over time.
• Scheduling Work and Activities — Scheduling events, programs, and
activities, as well as the work of others.
• Training and Teaching Others — Identifying the educational needs of
others, developing formal educational or training programs or classes,
and teaching or instructing others.
• Coaching and Developing Others — Identifying the developmental needs
of others and coaching, mentoring, or otherwise helping others to
improve their knowledge or skills.
• Communicating with Persons Outside Organization — Communicating
with people outside the organization, representing the organization to
customers, the public, government, and other external sources. This
information can be exchanged in person, in writing, or by telephone or e-
mail.
• Resolving Conflicts and Negotiating with Others — Handling
complaints, settling disputes, and resolving grievances and conflicts, or
otherwise negotiating with others.
Position RS-000101 (Page 3 of 7)
2020 March 2 – EK
• Working Directly with the Public — Dealing directly with the public.
This includes serving customers in restaurants and stores and receiving
clients or guests.
• Monitoring and Controlling Resources — Monitoring and controlling
resources and overseeing the spending of money.
• Analyzing Data or Information — Identifying the underlying principles,
reasons, or facts of information by breaking down information or data
into separate parts.
• Developing Objectives and Strategies — Establishing long-range
objectives and specifying the strategies and actions to achieve them.
• Documenting/Recording Information — Entering, transcribing,
recording, storing, or maintaining information in written or
electronic/magnetic form.
• Estimating the Quantifiable Characteristics of Products, Events, or
Information — Estimating sizes, distances, and quantities; or
determining time, costs, resources, or materials needed to perform a work
activity.
• Selling or Influencing Others — Convincing others to buy
merchandise/goods or to otherwise change their minds or actions.
• Interpreting the Meaning of Information for Others — Translating or
explaining what information means and how it can be used.
• Performing Administrative Activities — Performing day-to-day
administrative tasks such as maintaining information files and processing
paperwork.
• Staffing Organizational Units — Recruiting, interviewing, selecting,
hiring, and promoting employees in an organization.
• Inspecting Equipment, Structures, or Material — Inspecting equipment,
structures, or materials to identify the cause of errors or other problems
or defects.
• Thinking Creatively — Developing, designing, or creating new
applications, ideas, relationships, systems, or products, including artistic
contributions.
• Provide Consultation and Advice to Others — Providing guidance and
expert advice to management or other groups on technical, systems-, or
process-related topics.
c. Principal Tasks
• Review financial statements, sales or activity reports, or other
performance data to measure productivity or goal achievement or to
identify areas needing cost reduction or program improvement.
• Direct administrative activities directly related to making products or
providing services.
• Prepare staff work schedules and assign specific duties.
• Monitor suppliers to ensure that they efficiently and effectively provide
needed goods or services within budgetary limits.
Position RS-000101 (Page 4 of 7)
2020 March 2 – EK
• Direct or coordinate financial or budget activities to fund operations,
maximize investments, or increase efficiency.
• Establish or implement departmental policies, goals, objectives, or
procedures in conjunction with board members, organization officials, or
staff members.
• Perform personnel functions such as selection, training, or evaluation.
• Plan or direct activities such as sales promotions that require
coordination with other department managers.
• Perform sales floor work, such as greeting or assisting customers,
stocking shelves, or taking inventory.
• Develop or implement product-marketing strategies, including
advertising campaigns or sales promotions.
9) Job Specifications
a. Technology Skills
• Business intelligence and data analysis software
• Calendar and scheduling software
• Data base management system software
• Data base reporting software
• Data base user interface and query software
• Document management software
• Electronic mail software
• Facilities management software
• Financial analysis software
• Human resources software
• Internet browser software
• Inventory management software
• Office suite software
• Operating system software
• Point of sale POS software
• Presentation software
• Time accounting software
b. Tools Used
• Desktop computers
• Magnetic stripe readers and encoders
• Mobile phones
• Personal computers
• Photocopiers
• Point of sale POS terminal
• Security cameras
Position RS-000101 (Page 5 of 7)
2020 March 2 – EK
c. Knowledge
• Administration and Management — Knowledge of business and
management principles involved in strategic planning, resource
allocation, human resources modeling, leadership technique, production
methods, and coordination of people and resources.
• Customer and Personal Service — Knowledge of principles and
processes for providing customer and personal services. This includes
customer needs assessment, meeting quality standards for services, and
evaluation of customer satisfaction.
• Personnel and Human Resources — Knowledge of principles and
procedures for personnel recruitment, selection, training, compensation
and benefits, labor relations and negotiation, and personnel information
systems.
• English Language — Knowledge of the structure and content of the
English language including the meaning and spelling of words, rules of
composition, and grammar.
• Clerical — Knowledge of administrative and clerical procedures and
systems such as word processing, managing files and records,
stenography and transcription, designing forms, and other office
procedures and terminology.
• Sales and Marketing — Knowledge of principles and methods for
showing, promoting, and selling products or services. This includes
marketing strategy and tactics, product demonstration, sales techniques,
and sales control systems.
• Public Safety and Security — Knowledge of relevant equipment,
policies, procedures, and strategies for the protection of people, data,
property, and institutions.
d. Skills
• Coordination — Adjusting actions in relation to others’ actions.
• Monitoring — Monitoring/Assessing performance of yourself, other
individuals, or organizations to make improvements or take corrective
action.
• Social Perceptiveness — Being aware of others’ reactions and
understanding why they react as they do.
• Speaking — Talking to others to convey information effectively.
• Critical Thinking — Using logic and reasoning to identify the strengths
and weaknesses of alternative solutions, conclusions or approaches to
problems.
• Reading Comprehension — Understanding written sentences and
paragraphs in work related documents.
• Time Management — Managing one’s own time and the time of others.
• Negotiation — Bringing others together and trying to reconcile
differences.
Position RS-000101 (Page 6 of 7)
2020 March 2 – EK
• Complex Problem Solving — Identifying complex problems and
reviewing related information to develop and evaluate options and
implement solutions.
• Judgment and Decision Making — Considering the relative costs and
benefits of potential actions to choose the most appropriate one.
• Management of Personnel Resources — Motivating, developing, and
directing people as they work, identifying the best people for the job.
• Persuasion — Persuading others to change their minds or behavior.
• Management of Material Resources — Obtaining and seeing to the
appropriate use of equipment, facilities, and materials needed to do
certain work.
• Service Orientation — Actively looking for ways to help people.
• Writing — Communicating effectively in writing as appropriate for the
needs of the audience.
• Instructing — Teaching others how to do something.
• Management of Financial Resources — Determining how money will be
spent to get the work done, and accounting for these expenditures.
• Abilities
• Oral Comprehension — The ability to listen to and understand
information and ideas presented through spoken words and sentences.
• Oral Expression — The ability to communicate information and ideas in
speaking so others will understand.
• Problem Sensitivity — The ability to tell when something is wrong or is
likely to go wrong. It does not involve solving the problem, only
recognizing there is a problem.
• Speech Clarity — The ability to speak clearly so others can understand
you.
• Written Comprehension — The ability to read and understand
information and ideas presented in writing.
• Written Expression — The ability to communicate information and ideas
in writing so others will understand.
• Speech Recognition — The ability to identify and understand the speech
of another person.
• Deductive Reasoning — The ability to apply general rules to specific
problems to produce answers that make sense.
• Information Ordering — The ability to arrange things or actions in a
certain order or pattern according to a specific rule or set of rules (e.g.,
patterns of numbers, letters, words, pictures, mathematical operations).
• Inductive Reasoning — The ability to combine pieces of information to
form general rules or conclusions (includes finding a relationship among
seemingly unrelated events).
• Category Flexibility — The ability to generate or use different sets of
rules for combining or grouping things in different ways.
Position RS-000101 (Page 7 of 7)
2020 March 2 – EK
• Fluency of Ideas — The ability to come up with a number of ideas about
a topic (the number of ideas is important, not their quality, correctness, or
creativity).
e. Required Education:
• Baccalaureate degree in business from a regionally accredited college or
university.
f. Required Experience:
• Retail management experience 3-5 years.
Position RS-000301 (Page 1 of 6)
2020 March 2 – EK
Flowering Fern Enterprises
Integrated Job Description and Job Specification
1) Job Title:
(Retail Store) “Assistant Manager”
2) Position Number:
RS-000301
3) FLSA Wage Category:
???
4) Wage or salary:
$620.00 weekly plus non-discretionary bonuses and profit-sharing based upon
retail store performance.
5) Position Last Analyzed:
Date:
• 2020 March 2
Analyst:
• Ellen Kassman
6) Reports to:
Retail Store General Manager
7) Direct Reports:
None. (All retail store employees at Flowering Fern Enterprises report directly to
the Retail Store General Manager.)
8) Job Description
a. Summary
• Assist the Retail Store General Manager in the planning, directing, and
coordinating the operations of a Flowering Fern retail store. Duties and
responsibilities include assisting in formulating policies, managing daily
operations, and planning the use of material and human resources.
b. Principal Work Activities
• Making Decisions and Solving Problems
• Communicating with Supervisors, Peers, or Subordinates
• Getting Information
Position RS-000301 (Page 2 of 6)
2020 March 2 – EK
• Coordinating the Work and Activities of Others
• Guiding, Directing, and Motivating Subordinates
• Identifying Objects, Actions, and Events
• Interacting with Computers
• Judging the Qualities of Things, Services, or People
• Monitor Processes, Materials, or Surroundings
• Organizing, Planning, and Prioritizing Work
• Developing and Building Teams
• Evaluating Information to Determine Compliance with Standards
• Establishing and Maintaining Interpersonal Relationships
• Scheduling Work and Activities
• Training and Teaching Others
• Coaching and Developing Others
• Communicating with Persons Outside Organization
• Resolving Conflicts and Negotiating with Others
• Working Directly with the Public
• Monitoring and Controlling Resources
• Analyzing Data or Information
• Developing Objectives and Strategies
• Documenting/Recording Information
• Estimating the Quantifiable Characteristics of Products, Events, or
Information
• Selling or Influencing Others
• Interpreting the Meaning of Information for Others
• Performing Administrative Activities
• Staffing Organizational Units
• Inspecting Equipment, Structures, or Material
• Thinking Creatively
• Provide Consultation and Advice to Others
c. Principal Tasks
• Review financial statements, sales or activity reports, or other
performance data to measure productivity or goal achievement or to
identify areas needing cost reduction or program improvement.
• Direct administrative activities directly related to making products or
providing services.
• Prepare staff work schedules and assign specific duties.
• Monitor suppliers to ensure that they efficiently and effectively provide
needed goods or services within budgetary limits.
• Direct or coordinate financial or budget activities to fund operations,
maximize investments, or increase efficiency.
• Establish or implement departmental policies, goals, objectives, or
procedures in conjunction with board members, organization officials, or
staff members.
Position RS-000301 (Page 3 of 6)
2020 March 2 – EK
• Perform personnel functions such as selection, training, or evaluation.
• Plan or direct activities such as sales promotions that require
coordination with other department managers.
• Perform sales floor work, such as greeting or assisting customers,
stocking shelves, or taking inventory.
• Develop or implement product-marketing strategies, including
advertising campaigns or sales promotions.
9) Job Specifications
a. Technology Skills
• Calendar and scheduling software
• Data base reporting software
• Data base user interface and query software
• Document management software
• Electronic mail software
• Facilities management software
• Financial analysis software
• Human resources software
• Internet browser software
• Inventory management software
• Office suite software
• Operating system software
• Point of sale POS software
• Time accounting software
b. Tools Used
• Desktop computers
• Magnetic stripe readers and encoders
• Mobile phones
• Personal computers
• Photocopiers
• Point of sale POS terminal
• Security cameras
Position RS-000301 (Page 4 of 6)
2020 March 2 – EK
c. Knowledge
• Administration and Management — Knowledge of business and
management principles involved in strategic planning, resource
allocation, human resources modeling, leadership technique, production
methods, and coordination of people and resources.
• Customer and Personal Service — Knowledge of principles and
processes for providing customer and personal services. This includes
customer needs assessment, meeting quality standards for services, and
evaluation of customer satisfaction.
• Personnel and Human Resources — Knowledge of principles and
procedures for personnel recruitment, selection, training, compensation
and benefits, labor relations and negotiation, and personnel information
systems.
• English Language — Knowledge of the structure and content of the
English language including the meaning and spelling of words, rules of
composition, and grammar.
• Clerical — Knowledge of administrative and clerical procedures and
systems such as word processing, managing files and records,
stenography and transcription, designing forms, and other office
procedures and terminology.
• Sales and Marketing — Knowledge of principles and methods for
showing, promoting, and selling products or services. This includes
marketing strategy and tactics, product demonstration, sales techniques,
and sales control systems.
• Public Safety and Security — Knowledge of relevant equipment,
policies, procedures, and strategies for the protection of people, data,
property, and institutions.
d. Skills
• Coordination — Adjusting actions in relation to others’ actions.
• Monitoring — Monitoring/Assessing performance of yourself, other
individuals, or organizations to make improvements or take corrective
action.
• Social Perceptiveness — Being aware of others’ reactions and
understanding why they react as they do.
• Speaking — Talking to others to convey information effectively.
• Critical Thinking — Using logic and reasoning to identify the strengths
and weaknesses of alternative solutions, conclusions or approaches to
problems.
• Reading Comprehension — Understanding written sentences and
paragraphs in work related documents.
• Time Management — Managing one’s own time and the time of others.
• Negotiation — Bringing others together and trying to reconcile
differences.
Position RS-000301 (Page 5 of 6)
2020 March 2 – EK
• Complex Problem Solving — Identifying complex problems and
reviewing related information to develop and evaluate options and
implement solutions.
• Judgment and Decision Making — Considering the relative costs and
benefits of potential actions to choose the most appropriate one.
• Management of Personnel Resources — Motivating, developing, and
directing people as they work, identifying the best people for the job.
• Persuasion — Persuading others to change their minds or behavior.
• Management of Material Resources — Obtaining and seeing to the
appropriate use of equipment, facilities, and materials needed to do
certain work.
• Service Orientation — Actively looking for ways to help people.
• Writing — Communicating effectively in writing as appropriate for the
needs of the audience.
• Instructing — Teaching others how to do something.
• Management of Financial Resources — Determining how money will be
spent to get the work done, and accounting for these expenditures.
• Abilities
• Oral Comprehension — The ability to listen to and understand
information and ideas presented through spoken words and sentences.
• Oral Expression — The ability to communicate information and ideas in
speaking so others will understand.
• Problem Sensitivity — The ability to tell when something is wrong or is
likely to go wrong. It does not involve solving the problem, only
recognizing there is a problem.
• Speech Clarity — The ability to speak clearly so others can understand
you.
• Written Comprehension — The ability to read and understand
information and ideas presented in writing.
• Written Expression — The ability to communicate information and ideas
in writing so others will understand.
• Speech Recognition — The ability to identify and understand the speech
of another person.
• Deductive Reasoning — The ability to apply general rules to specific
problems to produce answers that make sense.
• Information Ordering — The ability to arrange things or actions in a
certain order or pattern according to a specific rule or set of rules (e.g.,
patterns of numbers, letters, words, pictures, mathematical operations).
• Inductive Reasoning — The ability to combine pieces of information to
form general rules or conclusions (includes finding a relationship among
seemingly unrelated events).
• Category Flexibility — The ability to generate or use different sets of
rules for combining or grouping things in different ways.
Position RS-000301 (Page 6 of 6)
2020 March 2 – EK
• Fluency of Ideas — The ability to come up with a number of ideas about
a topic (the number of ideas is important, not their quality, correctness, or
creativity).
e. Required Education:
• Baccalaureate degree in business from a regionally accredited college or
university.
f. Required Experience:
• Retail sales experience at least 3 years.
Position RS-000501 (Page 1 of 5)
2020 March 2 – EK
Flowering Fern Enterprises
Integrated Job Description and Job Specification
1) Job Title:
(Retail Store) “Shift Supervisor”
2) Position Number:
RS-000501
3) FLSA Wage Category:
???
4) Wage or salary:
$500.00 weekly plus non-discretionary bonuses and profit-sharing based upon
retail store performance.
5) Position Last Analyzed:
Date:
• 2020 March 2
Analyst:
• Ellen Kassman
6) Reports to:
Retail Store General Manager
7) Direct Reports:
None. (All retail store employees at Flowering Fern Enterprises report directly to
the Retail Store General Manager.)
8) Job Description
a. Summary
• Perform the work of a retail sales associate, occasionally supervising
over employees as needed.
b. Principal Work Activities
• Communicating with Supervisors, Peers, or Subordinates
• Coordinating the Work and Activities of Others
• Developing and Building Teams
• Documenting/Recording Information
• Establishing and Maintaining Interpersonal Relationships
• Evaluating Information to Determine Compliance with Standards
Position RS-000501 (Page 2 of 5)
2020 March 2 – EK
• Getting Information
• Guiding, Directing, and Motivating Subordinates
• Handling and Moving Objects
• Identifying Objects, Actions, and Events
• Interacting with Computers
• Interpreting the Meaning of Information for Others
• Judging the Qualities of Things, Services, or People
• Making Decisions and Solving Problems
• Monitor Processes, Materials, or Surroundings
• Organizing, Planning, and Prioritizing Work
• Performing General Physical Activities
• Provide Consultation and Advice to Others
• Resolving Conflicts and Negotiating with Others
• Selling or Influencing Others
• Working Directly with the Public
c. Principal Tasks
• Greet customers and ascertain what each customer wants or needs.
• Recommend, select, and help locate or obtain merchandise based on
customer needs and desires.
• Compute sales prices, total purchases, and receive and process cash or
credit payment.
• Prepare merchandise for purchase or rental.
• Answer questions regarding the store and its merchandise.
• Maintain knowledge of current sales and promotions, policies regarding
payment and exchanges, and security practices.
• Demonstrate use or operation of merchandise.
• Describe merchandise and explain use, operation, and care of
merchandise to customers.
• Ticket, arrange, and display merchandise to promote sales.
• Inventory stock and requisition new stock.
• Exchange merchandise for customers and accept returns.
• Watch for and recognize security risks and thefts and know how to
prevent or handle these situations.
• Place special orders or call other stores to find desired items.
• Clean shelves, counters, and tables.
• Maintain records related to sales.
• Open and close cash registers, performing tasks such as counting money,
separating charge slips, coupons, and vouchers, balancing cash drawers,
and making deposits.
• Periodically supervise other employees as necessary.
Position RS-000501 (Page 3 of 5)
2020 March 2 – EK
9) Job Specifications
a. Required Technology Skills
• Data base user interface and query software
• Desktop publishing software
• Electronic mail software
• Human resources software
• Internet browser software
• Office suite software
• Operating system software
• Point of sale POS software
b. Tools Frequently Used
• Bar code reader equipment
• Cash registers
• Desktop computers
• Electronic funds transfer point of sale equipment
• Ladders
• Magnetic stripe readers and encoders
• Pallet jack
• Point of sale payment terminal
• Point of sale POS terminal
• Shovel
• Wheel barrow
c. Required Knowledge
• Sales and Marketing — Knowledge of principles and methods for
showing, promoting, and selling products or services. This includes
marketing strategy and tactics, product demonstration, sales techniques,
and sales control systems.
• Customer and Personal Service — Knowledge of principles and
processes for providing customer and personal services. This includes
customer needs assessment, meeting quality standards for services, and
evaluation of customer satisfaction.
• English Language — Knowledge of the structure and content of the
English language including the meaning and spelling of words, rules of
composition, and grammar.
• Clerical — Knowledge of administrative and clerical procedures and
systems such as word processing, managing files and records,
stenography and transcription, designing forms, and other office
procedures and terminology.
• Public Safety and Security — Knowledge of relevant equipment,
policies, procedures, and strategies for the protection of people, data,
property, and institutions.
Position RS-000501 (Page 4 of 5)
2020 March 2 – EK
• Foreign Language — Knowledge of the structure and content of a
foreign (non-English) language including the meaning and spelling of
words, rules of composition and grammar, and pronunciation (preferred).
d. Required Skills
• Persuasion — Persuading others to change their minds or behavior.
• Active Listening — Giving full attention to what other people are saying,
taking time to understand the points being made, asking questions as
appropriate, and not interrupting at inappropriate times.
• Service Orientation — Actively looking for ways to help people.
• Speaking — Talking to others to convey information effectively.
• Social Perceptiveness — Being aware of others’ reactions and
understanding why they react as they do.
• Critical Thinking — Using logic and reasoning to identify the strengths
and weaknesses of alternative solutions, conclusions or approaches to
problems.
• Time Management — Managing one’s own time and the time of others.
e. Required Abilities
• Oral Expression — The ability to communicate information and ideas in
speaking so others will understand.
• Oral Comprehension — The ability to listen to and understand
information and ideas presented through spoken words and sentences.
• Speech Clarity — The ability to speak clearly so others can understand
you.
• Speech Recognition — The ability to identify and understand the speech
of another person.
• Problem Sensitivity — The ability to tell when something is wrong or is
likely to go wrong. It does not involve solving the problem, only
recognizing there is a problem.
• Information Ordering — The ability to arrange things or actions in a
certain order or pattern according to a specific rule or set of rules (e.g.,
patterns of numbers, letters, words, pictures, mathematical operations).
• Near Vision — The ability to see details at close range (within a few feet
of the observer).
• Written Comprehension — The ability to read and understand
information and ideas presented in writing.
• Perceptual Speed — The ability to quickly and accurately compare
similarities and differences among sets of letters, numbers, objects,
pictures, or patterns. The things to be compared may be presented at the
same time or one after the other. This ability also includes comparing a
presented object with a remembered object.
• Visualization — The ability to imagine how something will look after it
is moved around or when its parts are moved or rearranged.
Position RS-000501 (Page 5 of 5)
2020 March 2 – EK
• Manual Dexterity — The ability to quickly move your hand, your hand
together with your arm, or your two hands to grasp, manipulate, or
assemble objects.
• Stamina — The ability to exert yourself physically over long periods of
time without getting winded or out of breath.
f. Required Education:
• High school diploma or equivalent.
g. Required Experience:
• Retail sales experience 1-3 years.
PositionRS-000701 (Page 1 of 4)
2020 March 2 – EK
Flowering Fern Enterprises
Integrated Job Description and Job Specification
1) Job Title:
a. “Outside Retail Salesperson”
2) Position Number:
a. RS-000701
3) FLSA Wage Category:
a. ???
4) Wage or salary:
a. $11.63-19.77 hourly.
5) Position Last Analyzed:
a. Date:
• 2020 March 2
b. Analyst:
• Ellen Kassman
6) Reports to:
a. Retail Store General Manager
7) Direct Reports:
a. None. (All retail store employees at Flowering Fern Enterprises report directly to
the Retail Store General Manager.)
8) Job Description
a. Summary
• Perform the work of a retail sales associate working in the retail store’s
outside garden area.
b. Principal Work Activities
• Working Directly with the Public
• Selling or Influencing Others
• Getting Information
• Establishing and Maintaining Interpersonal Relationships
• Making Decisions and Solving Problems
• Communicating with Supervisors, Peers, or Subordinates
• Identifying Objects, Actions, and Events
Position RS-000701 (Page 2 of 4)
2020 March 2 – EK
• Handling and Moving Objects
• Resolving Conflicts and Negotiating with Others
• Judging the Qualities of Things, Services, or People
• Organizing, Planning, and Prioritizing Work
• Interpreting the Meaning of Information for Others
• Performing General Physical Activities
c. Principal Tasks
• Greet customers and ascertain what each customer wants or needs.
• Recommend, select, and help locate or obtain merchandise based on
customer needs and desires.
• Compute sales prices, total purchases, and receive and process cash or
credit payment.
• Prepare merchandise for purchase or rental.
• Answer questions regarding the store and its merchandise.
• Maintain knowledge of current sales and promotions, policies regarding
payment and exchanges, and security practices.
• Demonstrate use or operation of merchandise.
• Describe merchandise and explain use, operation, and care of
merchandise to customers.
• Ticket, arrange, and display merchandise to promote sales.
• Inventory stock and requisition new stock.
• Exchange merchandise for customers and accept returns.
• Watch for and recognize security risks and thefts and know how to
prevent or handle these situations.
• Place special orders or call other stores to find desired items.
• Clean shelves, counters, and tables.
• Maintain records related to sales.
• Open and close cash registers, performing tasks such as counting money,
separating charge slips, coupons, and vouchers, balancing cash drawers,
and making deposits.
9) Job Specifications
a. Required Technology Skills
• Data base user interface and query software
• Desktop publishing software
• Electronic mail software
• Human resources software
• Internet browser software
• Office suite software
• Operating system software
• Point of sale POS software
Position RS-000701 (Page 3 of 4)
2020 March 2 – EK
b. Tools Frequently Used
• Bar code reader equipment
• Cash registers
• Desktop computers
• Electronic funds transfer point of sale equipment
• Ladders
• Magnetic stripe readers and encoders
• Pallet jack
• Point of sale payment terminal
• Point of sale POS terminal
• Shovel
• Wheel barrow
c. Required Knowledge
• Sales and Marketing — Knowledge of principles and methods for
showing, promoting, and selling products or services. This includes
marketing strategy and tactics, product demonstration, sales techniques,
and sales control systems.
• Customer and Personal Service — Knowledge of principles and
processes for providing customer and personal services. This includes
customer needs assessment, meeting quality standards for services, and
evaluation of customer satisfaction.
• English Language — Knowledge of the structure and content of the
English language including the meaning and spelling of words, rules of
composition, and grammar.
• Clerical — Knowledge of administrative and clerical procedures and
systems such as word processing, managing files and records,
stenography and transcription, designing forms, and other office
procedures and terminology.
• Public Safety and Security — Knowledge of relevant equipment,
policies, procedures, and strategies for the protection of people, data,
property, and institutions.
• Foreign Language — Knowledge of the structure and content of a
foreign (non-English) language including the meaning and spelling of
words, rules of composition and grammar, and pronunciation (preferred).
d. Required Skills
• Persuasion — Persuading others to change their minds or behavior.
• Active Listening — Giving full attention to what other people are saying,
taking time to understand the points being made, asking questions as
appropriate, and not interrupting at inappropriate times.
• Service Orientation — Actively looking for ways to help people.
• Speaking — Talking to others to convey information effectively.
• Social Perceptiveness — Being aware of others’ reactions and
understanding why they react as they do.
Position RS-000701 (Page 4 of 4)
2020 March 2 – EK
• Critical Thinking — Using logic and reasoning to identify the strengths
and weaknesses of alternative solutions, conclusions or approaches to
problems.
• Time Management — Managing one’s own time and the time of others.
e. Required Abilities
• Oral Expression — The ability to communicate information and ideas in
speaking so others will understand.
• Oral Comprehension — The ability to listen to and understand
information and ideas presented through spoken words and sentences.
• Speech Clarity — The ability to speak clearly so others can understand
you.
• Speech Recognition — The ability to identify and understand the speech
of another person.
• Problem Sensitivity — The ability to tell when something is wrong or is
likely to go wrong. It does not involve solving the problem, only
recognizing there is a problem.
• Information Ordering — The ability to arrange things or actions in a
certain order or pattern according to a specific rule or set of rules (e.g.,
patterns of numbers, letters, words, pictures, mathematical operations).
• Near Vision — The ability to see details at close range (within a few feet
of the observer).
• Written Comprehension — The ability to read and understand
information and ideas presented in writing.
• Perceptual Speed — The ability to quickly and accurately compare
similarities and differences among sets of letters, numbers, objects,
pictures, or patterns. The things to be compared may be presented at the
same time or one after the other. This ability also includes comparing a
presented object with a remembered object.
• Visualization — The ability to imagine how something will look after it
is moved around or when its parts are moved or rearranged.
• Manual Dexterity — The ability to quickly move your hand, your hand
together with your arm, or your two hands to grasp, manipulate, or
assemble objects.
• Stamina — The ability to exert yourself physically over long periods of
time without getting winded or out of breath.
f. Required Education:
• High school diploma, equivalent, or completion of tenth grade and
current enrollment in high school or equivalent.
g. Required Experience:
• Some related work experience is preferred.
29C.F.R. §§ 541.0-541.710 (Page 1 of 47)
2020 March 5 (TJG)
Code of Federal Regulations
Title 29: Labor
PART 541—DEFINING AND DELIMITING THE EXEMPTIONS FOR EXECUTIVE,
ADMINISTRATIVE, PROFESSIONAL, COMPUTER AND OUTSIDE SALES
EMPLOYEES
Contents
Subpart A—General Regulations
§541.0
Introductory statement.
§541.1 Terms used in regulations.
§541.2 Job titles insufficient.
§541.3 Scope of the section 13(a)(1) exemptions.
§541.4 Other laws and collective bargaining agreements.
Subpart B—Executive Employees
§541.100 General rule for executive employees.
§541.101 Business owner.
§541.102 Management.
§541.103 Department or subdivision.
§541.104 Two or more other employees.
§541.105 Particular weight.
§541.106 Concurrent duties.
Subpart C—Administrative Employees
§541.200 General rule for administrative employees.
§541.201 Directly related to management or general business operations.
§541.202 Discretion and independent judgment.
§541.203 Administrative exemption examples.
§541.204 Educational establishments.
Subpart D—Professional Employees
§541.300 General rule for professional employees.
§541.301 Learned professionals.
§541.302 Creative professionals.
§541.303 Teachers.
§541.304 Practice of law or medicine.
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2020 March 5 (TJG)
Subpart E—Computer Employees
§541.400 General rule for computer employees.
§541.401 Computer manufacture and repair.
§541.402 Executive and administrative computer employees.
Subpart F—Outside Sales Employees
§541.500 General rule for outside sales employees.
§541.501 Making sales or obtaining orders.
§541.502 Away from employer’s place of business.
§541.503 Promotion work.
§541.504 Drivers who sell.
Subpart G—Salary Requirements
§541.600 Amount of salary required.
§541.601 Highly compensated employees.
§541.602 Salary basis.
§541.603 Effect of improper deductions from salary.
§541.604 Minimum guarantee plus extras.
§541.605 Fee basis.
§541.606 Board, lodging or other facilities.
§541.607 Automatic updates to amounts of salary and compensation required.
Subpart H—Definitions and Miscellaneous Provisions
§541.700 Primary duty.
§541.701 Customarily and regularly.
§541.702 Exempt and nonexempt work.
§541.703 Directly and closely related.
§541.704 Use of manuals.
§541.705 Trainees.
§541.706 Emergencies.
§541.707 Occasional tasks.
§541.708 Combination exemptions.
§541.709 Motion picture producing industry.
§541.710 Employees of public agencies.
29 C.F.R. §§ 541.0-541.710 (Page 3 of 47)
2020 March 5 (TJG)
Subpart A—General Regulations
§541.0 Introductory statement.
(a) Section 13(a)(1) of the Fair Labor Standards Act, as amended, provides an exemption
from the Act’s minimum wage and overtime requirements for any employee employed in
a bona fide executive, administrative, or professional capacity (including any employee
employed in the capacity of academic administrative personnel or teacher in elementary
or secondary schools), or in the capacity of an outside sales employee, as such terms are
defined and delimited from time to time by regulations of the Secretary, subject to the
provisions of the Administrative Procedure Act. Section 13(a)(17) of the Act provides an
exemption from the minimum wage and overtime requirements for computer systems
analysts, computer programmers, software engineers, and other similarly skilled
computer employees.
(b) The requirements for these exemptions are contained in this part as follows: executive
employees, subpart B; administrative employees, subpart C; professional employees,
subpart D; computer employees, subpart E; outside sales employees, subpart F. Subpart
G contains regulations regarding salary requirements applicable to most of the
exemptions, including salary levels and the salary basis test. Subpart G also contains a
provision for exempting certain highly compensated employees. Subpart H contains
definitions and other miscellaneous provisions applicable to all or several of the
exemptions.
(c) Effective July 1, 1972, the Fair Labor Standards Act was amended to include within the
protection of the equal pay provisions those employees exempt from the minimum wage
and overtime pay provisions as bona fide executive, administrative, and professional
employees (including any employee employed in the capacity of academic administrative
personnel or teacher in elementary or secondary schools), or in the capacity of an outside
sales employee under section 13(a)(1) of the Act. The equal pay provisions in section
6(d) of the Fair Labor Standards Act are administered and enforced by the United States
Equal Employment Opportunity Commission.
§541.1 Terms used in regulations.
Act means the Fair Labor Standards Act of 1938, as amended.
Administrator means the Administrator of the Wage and Hour Division, United States
Department of Labor. The Secretary of Labor has delegated to the Administrator the functions
vested in the Secretary under sections 13(a)(1) and 13(a)(17) of the Fair Labor Standards Act.
29 C.F.R. §§ 541.0-541.710 (Page 4 of 47)
2020 March 5 (TJG)
§541.2 Job titles insufficient.
A job title alone is insufficient to establish the exempt status of an employee. The exempt or
nonexempt status of any particular employee must be determined on the basis of whether the
employee’s salary and duties meet the requirements of the regulations in this part.
§541.3 Scope of the section 13(a)(1) exemptions.
(a) The section 13(a)(1) exemptions and the regulations in this part do not apply to manual
laborers or other “blue collar” workers who perform work involving repetitive operations
with their hands, physical skill and energy. Such nonexempt “blue collar” employees gain
the skills and knowledge required for performance of their routine manual and physical
work through apprenticeships and on-the-job training, not through the prolonged course
of specialized intellectual instruction required for exempt learned professional employees
such as medical doctors, architects and archeologists. Thus, for example, non-
management production-line employees and non-management employees in
maintenance, construction and similar occupations such as carpenters, electricians,
mechanics, plumbers, iron workers, craftsmen, operating engineers, longshoremen,
construction workers and laborers are entitled to minimum wage and overtime premium
pay under the Fair Labor Standards Act, and are not exempt under the regulations in this
part no matter how highly paid they might be.
(b)
(1) The section 13(a)(1) exemptions and the regulations in this part also do not apply
to police officers, detectives, deputy sheriffs, state troopers, highway patrol
officers, investigators, inspectors, correctional officers, parole or probation
officers, park rangers, fire fighters, paramedics, emergency medical technicians,
ambulance personnel, rescue workers, hazardous materials workers and similar
employees, regardless of rank or pay level, who perform work such as
preventing, controlling or extinguishing fires of any type; rescuing fire, crime or
accident victims; preventing or detecting crimes; conducting investigations or
inspections for violations of law; performing surveillance; pursuing, restraining
and apprehending suspects; detaining or supervising suspected and convicted
criminals, including those on probation or parole; interviewing witnesses;
interrogating and fingerprinting suspects; preparing investigative reports; or
other similar work.
(2) Such employees do not qualify as exempt executive employees because their
primary duty is not management of the enterprise in which the employee is
employed or a customarily recognized department or subdivision thereof as
required under §541.100. Thus, for example, a police officer or fire fighter
whose primary duty is to investigate crimes or fight fires is not exempt under
section 13(a)(1) of the Act merely because the police officer or fire fighter also
29 C.F.R. §§ 541.0-541.710 (Page 5 of 47)
2020 March 5 (TJG)
directs the work of other employees in the conduct of an investigation or fighting
a fire.
(3) Such employees do not qualify as exempt administrative employees because
their primary duty is not the performance of work directly related to the
management or general business operations of the employer or the employer’s
customers as required under §541.200.
(4) Such employees do not qualify as exempt professionals because their primary
duty is not the performance of work requiring knowledge of an advanced type in
a field of science or learning customarily acquired by a prolonged course of
specialized intellectual instruction or the performance of work requiring
invention, imagination, originality or talent in a recognized field of artistic or
creative endeavor as required under §541.300. Although some police officers,
fire fighters, paramedics, emergency medical technicians and similar employees
have college degrees, a specialized academic degree is not a standard
prerequisite for employment in such occupations.
§541.4 Other laws and collective bargaining agreements.
The Fair Labor Standards Act provides minimum standards that may be exceeded, but cannot be
waived or reduced. Employers must comply, for example, with any Federal, State or municipal
laws, regulations or ordinances establishing a higher minimum wage or lower maximum
workweek than those established under the Act. Similarly, employers, on their own initiative or
under a collective bargaining agreement with a labor union, are not precluded by the Act from
providing a wage higher than the statutory minimum, a shorter workweek than the statutory
maximum, or a higher overtime premium (double time, for example) than provided by the Act.
While collective bargaining agreements cannot waive or reduce the Act’s protections, nothing in
the Act or the regulations in this part relieves employers from their contractual obligations under
collective bargaining agreements.
29 C.F.R. §§ 541.0-541.710 (Page 6 of 47)
2020 March 5 (TJG)
Subpart B—Executive Employees
§541.100 General rule for executive employees.
(a) The term “employee employed in a bona fide executive capacity” in section 13(a)(1) of
the Act shall mean any employee:
(1) Compensated on a salary basis pursuant to §541.600 at a rate of not less than $684
per week (or $455 per week if employed in the Commonwealth of the Northern
Mariana Islands, Guam, Puerto Rico, or the U.S. Virgin Islands by employers
other than the Federal government, or $380 per week if employed in American
Samoa by employers other than the Federal government), exclusive of board,
lodging or other facilities;
(2) Whose primary duty is management of the enterprise in which the employee is
employed or of a customarily recognized department or subdivision thereof;
(3) Who customarily and regularly directs the work of two or more other employees;
and
(4) Who has the authority to hire or fire other employees or whose suggestions and
recommendations as to the hiring, firing, advancement, promotion or any other
change of status of other employees are given particular weight.
(b) The phrase “salary basis” is defined at §541.602; “board, lodging or other facilities” is
defined at §541.606; “primary duty” is defined at §541.700; and “customarily and
regularly” is defined at §541.701.
§541.101 Business owner.
The term “employee employed in a bona fide executive capacity” in section 13(a)(1) of the Act
also includes any employee who owns at least a bona fide 20-percent equity interest in the
enterprise in which the employee is employed, regardless of whether the business is a corporate
or other type of organization, and who is actively engaged in its management. The term
“management” is defined in §541.102. The requirements of Subpart G (salary requirements) of
this part do not apply to the business owners described in this section.
29 C.F.R. §§ 541.0-541.710 (Page 7 of 47)
2020 March 5 (TJG)
§541.102 Management.
Generally, “management” includes, but is not limited to, activities such as interviewing,
selecting, and training of employees; setting and adjusting their rates of pay and hours of work;
directing the work of employees; maintaining production or sales records for use in supervision
or control; appraising employees’ productivity and efficiency for the purpose of recommending
promotions or other changes in status; handling employee complaints and grievances;
disciplining employees; planning the work; determining the techniques to be used; apportioning
the work among the employees; determining the type of materials, supplies, machinery,
equipment or tools to be used or merchandise to be bought, stocked and sold; controlling the
flow and distribution of materials or merchandise and supplies; providing for the safety and
security of the employees or the property; planning and controlling the budget; and monitoring or
implementing legal compliance measures.
§541.103 Department or subdivision.
(a) The phrase “a customarily recognized department or subdivision” is intended to
distinguish between a mere collection of employees assigned from time to time to a
specific job or series of jobs and a unit with permanent status and function. A customarily
recognized department or subdivision must have a permanent status and a continuing
function. For example, a large employer’s human resources department might have
subdivisions for labor relations, pensions and other benefits, equal employment
opportunity, and personnel management, each of which has a permanent status and
function.
(b) When an enterprise has more than one establishment, the employee in charge of each
establishment may be considered in charge of a recognized subdivision of the enterprise.
(c) A recognized department or subdivision need not be physically within the employer’s
establishment and may move from place to place. The mere fact that the employee works
in more than one location does not invalidate the exemption if other factors show that the
employee is actually in charge of a recognized unit with a continuing function in the
organization.
(d) Continuity of the same subordinate personnel is not essential to the existence of a
recognized unit with a continuing function. An otherwise exempt employee will not lose
the exemption merely because the employee draws and supervises workers from a pool or
supervises a team of workers drawn from other recognized units, if other factors are
present that indicate that the employee is in charge of a recognized unit with a continuing
function.
29 C.F.R. §§ 541.0-541.710 (Page 8 of 47)
2020 March 5 (TJG)
§541.104 Two or more other employees.
(a) To qualify as an exempt executive under §541.100, the employee must customarily and
regularly direct the work of two or more other employees. The phrase “two or more other
employees” means two full-time employees or their equivalent. One full-time and two
half-time employees, for example, are equivalent to two full-time employees. Four half-
time employees are also equivalent.
(b) The supervision can be distributed among two, three or more employees, but each such
employee must customarily and regularly direct the work of two or more other full-time
employees or the equivalent. Thus, for example, a department with five full-time
nonexempt workers may have up to two exempt supervisors if each such supervisor
customarily and regularly directs the work of two of those workers.
(c) An employee who merely assists the manager of a particular department and supervises
two or more employees only in the actual manager’s absence does not meet this
requirement.
(d) Hours worked by an employee cannot be credited more than once for different
executives. Thus, a shared responsibility for the supervision of the same two employees
in the same department does not satisfy this requirement. However, a full-time employee
who works four hours for one supervisor and four hours for a different supervisor, for
example, can be credited as a half-time employee for both supervisors.
§541.105 Particular weight.
To determine whether an employee’s suggestions and recommendations are given “particular
weight,” factors to be considered include, but are not limited to, whether it is part of the
employee’s job duties to make such suggestions and recommendations; the frequency with which
such suggestions and recommendations are made or requested; and the frequency with which the
employee’s suggestions and recommendations are relied upon. Generally, an executive’s
suggestions and recommendations must pertain to employees whom the executive customarily
and regularly directs. It does not include an occasional suggestion with regard to the change in
status of a co-worker. An employee’s suggestions and recommendations may still be deemed to
have “particular weight” even if a higher level manager’s recommendation has more importance
and even if the employee does not have authority to make the ultimate decision as to the
employee’s change in status.
29 C.F.R. §§ 541.0-541.710 (Page 9 of 47)
2020 March 5 (TJG)
§541.106 Concurrent duties.
(a) Concurrent performance of exempt and nonexempt work does not disqualify an employee
from the executive exemption if the requirements of §541.100 are otherwise met.
Whether an employee meets the requirements of §541.100 when the employee performs
concurrent duties is determined on a case-by-case basis and based on the factors set forth
in §541.700. Generally, exempt executives make the decision regarding when to perform
nonexempt duties and remain responsible for the success or failure of business operations
under their management while performing the nonexempt work. In contrast, the
nonexempt employee generally is directed by a supervisor to perform the exempt work or
performs the exempt work for defined time periods. An employee whose primary duty is
ordinary production work or routine, recurrent or repetitive tasks cannot qualify for
exemption as an executive.
(b) For example, an assistant manager in a retail establishment may perform work such as
serving customers, cooking food, stocking shelves and cleaning the establishment, but
performance of such nonexempt work does not preclude the exemption if the assistant
manager’s primary duty is management. An assistant manager can supervise employees
and serve customers at the same time without losing the exemption. An exempt employee
can also simultaneously direct the work of other employees and stock shelves.
(c) In contrast, a relief supervisor or working supervisor whose primary duty is performing
nonexempt work on the production line in a manufacturing plant does not become
exempt merely because the nonexempt production line employee occasionally has some
responsibility for directing the work of other nonexempt production line employees
when, for example, the exempt supervisor is unavailable. Similarly, an employee whose
primary duty is to work as an electrician is not an exempt executive even if the employee
also directs the work of other employees on the job site, orders parts and materials for the
job, and handles requests from the prime contractor.
29 C.F.R. §§ 541.0-541.710 (Page 10 of 47)
2020 March 5 (TJG)
Subpart C—Administrative Employees
§541.200 General rule for administrative employees.
(a) The term “employee employed in a bona fide administrative capacity” in section 13(a)(1)
of the Act shall mean any employee:
(1) Compensated on a salary or fee basis pursuant to §541.600 at a rate of not less
than $684 per week (or $455 per week if employed in the Commonwealth of the
Northern Mariana Islands, Guam, Puerto Rico, or the U.S. Virgin Islands by
employers other than the Federal government, or $380 per week if employed in
American Samoa by employers other than the Federal government), exclusive of
board, lodging or other facilities;
(2) Whose primary duty is the performance of office or non-manual work directly
related to the management or general business operations of the employer or the
employer’s customers; and
(3) Whose primary duty includes the exercise of discretion and independent judgment
with respect to matters of significance.
(b) The term “salary basis” is defined at §541.602; “fee basis” is defined at §541.605;
“board, lodging or other facilities” is defined at §541.606; and “primary duty” is defined
at §541.700.
§541.201 Directly related to management or general business operations.
(a) To qualify for the administrative exemption, an employee’s primary duty must be the
performance of work directly related to the management or general business operations of
the employer or the employer’s customers. The phrase “directly related to the
management or general business operations” refers to the type of work performed by the
employee. To meet this requirement, an employee must perform work directly related to
assisting with the running or servicing of the business, as distinguished, for example,
from working on a manufacturing production line or selling a product in a retail or
service establishment.
(b) Work directly related to management or general business operations includes, but is not
limited to, work in functional areas such as tax; finance; accounting; budgeting; auditing;
insurance; quality control; purchasing; procurement; advertising; marketing; research;
safety and health; personnel management; human resources; employee benefits; labor
relations; public relations, government relations; computer network, internet and database
administration; legal and regulatory compliance; and similar activities. Some of these
activities may be performed by employees who also would qualify for another
exemption.
29 C.F.R. §§ 541.0-541.710 (Page 11 of 47)
2020 March 5 (TJG)
(c) An employee may qualify for the administrative exemption if the employee’s primary
duty is the performance of work directly related to the management or general business
operations of the employer’s customers. Thus, for example, employees acting as advisers
or consultants to their employer’s clients or customers (as tax experts or financial
consultants, for example) may be exempt.
§541.202 Discretion and independent judgment.
(a) To qualify for the administrative exemption, an employee’s primary duty must include the
exercise of discretion and independent judgment with respect to matters of significance.
In general, the exercise of discretion and independent judgment involves the comparison
and the evaluation of possible courses of conduct, and acting or making a decision after
the various possibilities have been considered. The term “matters of significance” refers
to the level of importance or consequence of the work performed.
(b) The phrase “discretion and independent judgment” must be applied in the light of all the
facts involved in the particular employment situation in which the question arises. Factors
to consider when determining whether an employee exercises discretion and independent
judgment with respect to matters of significance include, but are not limited to: whether
the employee has authority to formulate, affect, interpret, or implement management
policies or operating practices; whether the employee carries out major assignments in
conducting the operations of the business; whether the employee performs work that
affects business operations to a substantial degree, even if the employee’s assignments are
related to operation of a particular segment of the business; whether the employee has
authority to commit the employer in matters that have significant financial impact;
whether the employee has authority to waive or deviate from established policies and
procedures without prior approval; whether the employee has authority to negotiate and
bind the company on significant matters; whether the employee provides consultation or
expert advice to management; whether the employee is involved in planning long- or
short-term business objectives; whether the employee investigates and resolves matters of
significance on behalf of management; and whether the employee represents the
company in handling complaints, arbitrating disputes or resolving grievances.
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(c) The exercise of discretion and independent judgment implies that the employee has
authority to make an independent choice, free from immediate direction or supervision.
However, employees can exercise discretion and independent judgment even if their
decisions or recommendations are reviewed at a higher level. Thus, the term “discretion
and independent judgment” does not require that the decisions made by an employee
have a finality that goes with unlimited authority and a complete absence of review. The
decisions made as a result of the exercise of discretion and independent judgment may
consist of recommendations for action rather than the actual taking of action. The fact
that an employee’s decision may be subject to review and that upon occasion the
decisions are revised or reversed after review does not mean that the employee is not
exercising discretion and independent judgment. For example, the policies formulated by
the credit manager of a large corporation may be subject to review by higher company
officials who may approve or disapprove these policies. The management consultant who
has made a study of the operations of a business and who has drawn a proposed change in
organization may have the plan reviewed or revised by superiors before it is submitted to
the client.
(d) An employer’s volume of business may make it necessary to employ a number of
employees to perform the same or similar work. The fact that many employees perform
identical work or work of the same relative importance does not mean that the work of
each such employee does not involve the exercise of discretion and independent
judgment with respect to matters of significance.
(e) The exercise of discretion and independent judgment must be more than the use of skill
in applying well-established techniques, procedures or specific standards described in
manuals or other sources. See also §541.704 regarding use of manuals. The exercise of
discretion and independent judgment also does not include clerical or secretarial work,
recording or tabulating data, or performing other mechanical, repetitive, recurrent or
routine work. An employee who simply tabulates data is not exempt, even if labeled as a
“statistician.”
(f) An employee does not exercise discretion and independent judgment with respect to
matters of significance merely because the employer will experience financial losses if
the employee fails to perform the job properly. For example, a messenger who is
entrusted with carrying large sums of money does not exercise discretion and
independent judgment with respect to matters of significance even though serious
consequences may flow from the employee’s neglect. Similarly, an employee who
operates very expensive equipment does not exercise discretion and independent
judgment with respect to matters of significance merely because improper performance
of the employee’s duties may cause serious financial loss to the employer.
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§541.203 Administrative exemption examples.
(a) Insurance claims adjusters generally meet the duties requirements for the administrative
exemption, whether they work for an insurance company or other type of company, if
their duties include activities such as interviewing insureds, witnesses and physicians;
inspecting property damage; reviewing factual information to prepare damage estimates;
evaluating and making recommendations regarding coverage of claims; determining
liability and total value of a claim; negotiating settlements; and making recommendations
regarding litigation.
(b) Employees in the financial services industry generally meet the duties requirements for
the administrative exemption if their duties include work such as collecting and analyzing
information regarding the customer’s income, assets, investments or debts; determining
which financial products best meet the customer’s needs and financial circumstances;
advising the customer regarding the advantages and disadvantages of different financial
products; and marketing, servicing or promoting the employer’s financial products.
However, an employee whose primary duty is selling financial products does not qualify
for the administrative exemption.
(c) An employee who leads a team of other employees assigned to complete major projects
for the employer (such as purchasing, selling or closing all or part of the business,
negotiating a real estate transaction or a collective bargaining agreement, or designing
and implementing productivity improvements) generally meets the duties requirements
for the administrative exemption, even if the employee does not have direct supervisory
responsibility over the other employees on the team.
(d) An executive assistant or administrative assistant to a business owner or senior executive
of a large business generally meets the duties requirements for the administrative
exemption if such employee, without specific instructions or prescribed procedures, has
been delegated authority regarding matters of significance.
(e) Human resources managers who formulate, interpret or implement employment policies
and management consultants who study the operations of a business and propose changes
in organization generally meet the duties requirements for the administrative exemption.
However, personnel clerks who “screen” applicants to obtain data regarding their
minimum qualifications and fitness for employment generally do not meet the duties
requirements for the administrative exemption. Such personnel clerks typically will reject
all applicants who do not meet minimum standards for the particular job or for
employment by the company. The minimum standards are usually set by the exempt
human resources manager or other company officials, and the decision to hire from the
group of qualified applicants who do meet the minimum standards is similarly made by
the exempt human resources manager or other company officials. Thus, when the
interviewing and screening functions are performed by the human resources manager or
personnel manager who makes the hiring decision or makes recommendations for hiring
from the pool of qualified applicants, such duties constitute exempt work, even though
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routine, because this work is directly and closely related to the employee’s exempt
functions.
(f) Purchasing agents with authority to bind the company on significant purchases generally
meet the duties requirements for the administrative exemption even if they must consult
with top management officials when making a purchase commitment for raw materials in
excess of the contemplated plant needs.
(g) Ordinary inspection work generally does not meet the duties requirements for the
administrative exemption. Inspectors normally perform specialized work along
standardized lines involving well-established techniques and procedures which may have
been catalogued and described in manuals or other sources. Such inspectors rely on
techniques and skills acquired by special training or experience. They have some leeway
in the performance of their work but only within closely prescribed limits.
(h) Employees usually called examiners or graders, such as employees that grade lumber,
generally do not meet the duties requirements for the administrative exemption. Such
employees usually perform work involving the comparison of products with established
standards which are frequently catalogued. Often, after continued reference to the written
standards, or through experience, the employee acquires sufficient knowledge so that
reference to written standards is unnecessary. The substitution of the employee’s memory
for a manual of standards does not convert the character of the work performed to exempt
work requiring the exercise of discretion and independent judgment.
(i) Comparison shopping performed by an employee of a retail store who merely reports to
the buyer the prices at a competitor’s store does not qualify for the administrative
exemption. However, the buyer who evaluates such reports on competitor prices to set
the employer’s prices generally meets the duties requirements for the administrative
exemption.
(j) Public sector inspectors or investigators of various types, such as fire prevention or
safety, building or construction, health or sanitation, environmental or soils specialists
and similar employees, generally do not meet the duties requirements for the
administrative exemption because their work typically does not involve work directly
related to the management or general business operations of the employer. Such
employees also do not qualify for the administrative exemption because their work
involves the use of skills and technical abilities in gathering factual information, applying
known standards or prescribed procedures, determining which procedure to follow, or
determining whether prescribed standards or criteria are met.
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§541.204 Educational establishments.
(a) The term “employee employed in a bona fide administrative capacity” in section 13(a)(1)
of the Act also includes employees:
(1) Compensated on a salary or fee basis at a rate of not less than $684 per week (or
$455 per week if employed in the Commonwealth of the Northern Mariana
Islands, Guam, Puerto Rico, or the U.S. Virgin Islands by employers other than
the Federal government, or $380 per week if employed in American Samoa by
employers other than the Federal government), exclusive of board, lodging, or
other facilities; or on a salary basis which is at least equal to the entrance salary
for teachers in the educational establishment by which employed; and
(2) Whose primary duty is performing administrative functions directly related to
academic instruction or training in an educational establishment or department or
subdivision thereof.
(b) The term “educational establishment” means an elementary or secondary school system,
an institution of higher education or other educational institution. Sections 3(v) and 3(w)
of the Act define elementary and secondary schools as those day or residential schools
that provide elementary or secondary education, as determined under State law. Under
the laws of most States, such education includes the curriculums in grades 1 through 12;
under many it includes also the introductory programs in kindergarten. Such education in
some States may also include nursery school programs in elementary education and
junior college curriculums in secondary education. The term “other educational
establishment” includes special schools for mentally or physically disabled or gifted
children, regardless of any classification of such schools as elementary, secondary or
higher. Factors relevant in determining whether post-secondary career programs are
educational institutions include whether the school is licensed by a state agency
responsible for the state’s educational system or accredited by a nationally recognized
accrediting organization for career schools. Also, for purposes of the exemption, no
distinction is drawn between public and private schools, or between those operated for
profit and those that are not for profit.
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(c) The phrase “performing administrative functions directly related to academic instruction
or training” means work related to the academic operations and functions in a school
rather than to administration along the lines of general business operations. Such
academic administrative functions include operations directly in the field of education.
Jobs relating to areas outside the educational field are not within the definition of
academic administration.
(1) Employees engaged in academic administrative functions include: the
superintendent or other head of an elementary or secondary school system, and
any assistants, responsible for administration of such matters as curriculum,
quality and methods of instructing, measuring and testing the learning potential
and achievement of students, establishing and maintaining academic and grading
standards, and other aspects of the teaching program; the principal and any vice-
principals responsible for the operation of an elementary or secondary school;
department heads in institutions of higher education responsible for the
administration of the mathematics department, the English department, the
foreign language department, etc.; academic counselors who perform work such
as administering school testing programs, assisting students with academic
problems and advising students concerning degree requirements; and other
employees with similar responsibilities.
(2) Jobs relating to building management and maintenance, jobs relating to the health
of the students, and academic staff such as social workers, psychologists, lunch
room managers or dietitians do not perform academic administrative functions.
Although such work is not considered academic administration, such employees
may qualify for exemption under §541.200 or under other sections of this part,
provided the requirements for such exemptions are met.
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Subpart D—Professional Employees
§541.300 General rule for professional employees.
(a) The term “employee employed in a bona fide professional capacity” in section 13(a)(1)
of the Act shall mean any employee:
(1) Compensated on a salary or fee basis pursuant to §541.600 at a rate of not less
than $684 per week (or $455 per week if employed in the Commonwealth of the
Northern Mariana Islands, Guam, Puerto Rico, or the U.S. Virgin Islands by
employers other than the Federal government, or $380 per week if employed in
American Samoa by employers other than the Federal government), exclusive of
board, lodging or other facilities; and
(2) Whose primary duty is the performance of work:
(i) Requiring knowledge of an advanced type in a field of science or learning
customarily acquired by a prolonged course of specialized intellectual
instruction; or
(ii) Requiring invention, imagination, originality or talent in a recognized field
of artistic or creative endeavor.
(b) The term “salary basis” is defined at §541.602; “fee basis” is defined at §541.605;
“board, lodging or other facilities” is defined at §541.606; and “primary duty” is defined
at §541.700.
§541.301 Learned professionals.
(a) To qualify for the learned professional exemption, an employee’s primary duty must be
the performance of work requiring advanced knowledge in a field of science or learning
customarily acquired by a prolonged course of specialized intellectual instruction. This
primary duty test includes three elements:
(1) The employee must perform work requiring advanced knowledge;
(2) The advanced knowledge must be in a field of science or learning; and
(3) The advanced knowledge must be customarily acquired by a prolonged course of
specialized intellectual instruction.
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(b) The phrase “work requiring advanced knowledge” means work which is predominantly
intellectual in character, and which includes work requiring the consistent exercise of
discretion and judgment, as distinguished from performance of routine mental, manual,
mechanical or physical work. An employee who performs work requiring advanced
knowledge generally uses the advanced knowledge to analyze, interpret or make
deductions from varying facts or circumstances. Advanced knowledge cannot be attained
at the high school level.
(c) The phrase “field of science or learning” includes the traditional professions of law,
medicine, theology, accounting, actuarial computation, engineering, architecture,
teaching, various types of physical, chemical and biological sciences, pharmacy and other
similar occupations that have a recognized professional status as distinguished from the
mechanical arts or skilled trades where in some instances the knowledge is of a fairly
advanced type, but is not in a field of science or learning.
(d) The phrase “customarily acquired by a prolonged course of specialized intellectual
instruction” restricts the exemption to professions where specialized academic training is
a standard prerequisite for entrance into the profession. The best prima facie evidence
that an employee meets this requirement is possession of the appropriate academic
degree. However, the word “customarily” means that the exemption is also available to
employees in such professions who have substantially the same knowledge level and
perform substantially the same work as the degreed employees, but who attained the
advanced knowledge through a combination of work experience and intellectual
instruction. Thus, for example, the learned professional exemption is available to the
occasional lawyer who has not gone to law school, or the occasional chemist who is not
the possessor of a degree in chemistry. However, the learned professional exemption is
not available for occupations that customarily may be performed with only the general
knowledge acquired by an academic degree in any field, with knowledge acquired
through an apprenticeship, or with training in the performance of routine mental, manual,
mechanical or physical processes. The learned professional exemption also does not
apply to occupations in which most employees have acquired their skill by experience
rather than by advanced specialized intellectual instruction.
(e)
(1) Registered or certified medical technologists. Registered or certified medical
technologists who have successfully completed three academic years of pre-
professional study in an accredited college or university plus a fourth year of
professional course work in a school of medical technology approved by the
Council of Medical Education of the American Medical Association generally
meet the duties requirements for the learned professional exemption.
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(2) Nurses. Registered nurses who are registered by the appropriate State examining
board generally meet the duties requirements for the learned professional
exemption. Licensed practical nurses and other similar health care employees,
however, generally do not qualify as exempt learned professionals because
possession of a specialized advanced academic degree is not a standard
prerequisite for entry into such occupations.
(3) Dental hygienists. Dental hygienists who have successfully completed four
academic years of pre-professional and professional study in an accredited college
or university approved by the Commission on Accreditation of Dental and Dental
Auxiliary Educational Programs of the American Dental Association generally
meet the duties requirements for the learned professional exemption.
(4) Physician assistants. Physician assistants who have successfully completed four
academic years of pre-professional and professional study, including graduation
from a physician assistant program accredited by the Accreditation Review
Commission on Education for the Physician Assistant, and who are certified by
the National Commission on Certification of Physician Assistants generally meet
the duties requirements for the learned professional exemption.
(5) Accountants. Certified public accountants generally meet the duties requirements
for the learned professional exemption. In addition, many other accountants who
are not certified public accountants but perform similar job duties may qualify as
exempt learned professionals. However, accounting clerks, bookkeepers and other
employees who normally perform a great deal of routine work generally will not
qualify as exempt professionals.
(6) Chefs. Chefs, such as executive chefs and sous chefs, who have attained a four-
year specialized academic degree in a culinary arts program, generally meet the
duties requirements for the learned professional exemption. The learned
professional exemption is not available to cooks who perform predominantly
routine mental, manual, mechanical or physical work.
(7) Paralegals. Paralegals and legal assistants generally do not qualify as exempt
learned professionals because an advanced specialized academic degree is not a
standard prerequisite for entry into the field. Although many paralegals possess
general four-year advanced degrees, most specialized paralegal programs are two-
year associate degree programs from a community college or equivalent
institution. However, the learned professional exemption is available for
paralegals who possess advanced specialized degrees in other professional fields
and apply advanced knowledge in that field in the performance of their duties. For
example, if a law firm hires an engineer as a paralegal to provide expert advice on
product liability cases or to assist on patent matters, that engineer would qualify
for exemption.
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(8) Athletic trainers. Athletic trainers who have successfully completed four
academic years of pre-professional and professional study in a specialized
curriculum accredited by the Commission on Accreditation of Allied Health
Education Programs and who are certified by the Board of Certification of the
National Athletic Trainers Association Board of Certification generally meet the
duties requirements for the learned professional exemption.
(9) Funeral directors or embalmers. Licensed funeral directors and embalmers who
are licensed by and working in a state that requires successful completion of four
academic years of pre-professional and professional study, including graduation
from a college of mortuary science accredited by the American Board of Funeral
Service Education, generally meet the duties requirements for the learned
professional exemption.
(f) The areas in which the professional exemption may be available are expanding. As
knowledge is developed, academic training is broadened and specialized degrees are
offered in new and diverse fields, thus creating new specialists in particular fields of
science or learning. When an advanced specialized degree has become a standard
requirement for a particular occupation, that occupation may have acquired the
characteristics of a learned profession. Accrediting and certifying organizations similar to
those listed in paragraphs (e)(1), (e)(3), (e)(4), (e)(8) and (e)(9) of this section also may
be created in the future. Such organizations may develop similar specialized curriculums
and certification programs which, if a standard requirement for a particular occupation,
may indicate that the occupation has acquired the characteristics of a learned profession.
§541.302 Creative professionals.
(a) To qualify for the creative professional exemption, an employee’s primary duty must be
the performance of work requiring invention, imagination, originality or talent in a
recognized field of artistic or creative endeavor as opposed to routine mental, manual,
mechanical or physical work. The exemption does not apply to work which can be
produced by a person with general manual or intellectual ability and training.
(b) To qualify for exemption as a creative professional, the work performed must be “in a
recognized field of artistic or creative endeavor.” This includes such fields as music,
writing, acting and the graphic arts.
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(c) The requirement of “invention, imagination, originality or talent” distinguishes the
creative professions from work that primarily depends on intelligence, diligence and
accuracy. The duties of employees vary widely, and exemption as a creative professional
depends on the extent of the invention, imagination, originality or talent exercised by the
employee. Determination of exempt creative professional status, therefore, must be made
on a case-by-case basis. This requirement generally is met by actors, musicians,
composers, conductors, and soloists; painters who at most are given the subject matter of
their painting; cartoonists who are merely told the title or underlying concept of a cartoon
and must rely on their own creative ability to express the concept; essayists, novelists,
short-story writers and screen-play writers who choose their own subjects and hand in a
finished piece of work to their employers (the majority of such persons are, of course, not
employees but self-employed); and persons holding the more responsible writing
positions in advertising agencies. This requirement generally is not met by a person who
is employed as a copyist, as an “animator” of motion-picture cartoons, or as a retoucher
of photographs, since such work is not properly described as creative in character.
(d) Journalists may satisfy the duties requirements for the creative professional exemption if
their primary duty is work requiring invention, imagination, originality or talent, as
opposed to work which depends primarily on intelligence, diligence and accuracy.
Employees of newspapers, magazines, television and other media are not exempt creative
professionals if they only collect, organize and record information that is routine or
already public, or if they do not contribute a unique interpretation or analysis to a news
product. Thus, for example, newspaper reporters who merely rewrite press releases or
who write standard recounts of public information by gathering facts on routine
community events are not exempt creative professionals. Reporters also do not qualify as
exempt creative professionals if their work product is subject to substantial control by the
employer. However, journalists may qualify as exempt creative professionals if their
primary duty is performing on the air in radio, television or other electronic media;
conducting investigative interviews; analyzing or interpreting public events; writing
editorials, opinion columns or other commentary; or acting as a narrator or commentator.
§541.303 Teachers.
(a) The term “employee employed in a bona fide professional capacity” in section 13(a)(1)
of the Act also means any employee with a primary duty of teaching, tutoring, instructing
or lecturing in the activity of imparting knowledge and who is employed and engaged in
this activity as a teacher in an educational establishment by which the employee is
employed. The term “educational establishment” is defined in §541.204(b).
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(b) Exempt teachers include, but are not limited to: Regular academic teachers; teachers of
kindergarten or nursery school pupils; teachers of gifted or disabled children; teachers of
skilled and semi-skilled trades and occupations; teachers engaged in automobile driving
instruction; aircraft flight instructors; home economics teachers; and vocal or
instrumental music instructors. Those faculty members who are engaged as teachers but
also spend a considerable amount of their time in extracurricular activities such as
coaching athletic teams or acting as moderators or advisors in such areas as drama,
speech, debate or journalism are engaged in teaching. Such activities are a recognized
part of the schools’ responsibility in contributing to the educational development of the
student.
(c) The possession of an elementary or secondary teacher’s certificate provides a clear means
of identifying the individuals contemplated as being within the scope of the exemption
for teaching professionals. Teachers who possess a teaching certificate qualify for the
exemption regardless of the terminology (e.g., permanent, conditional, standard,
provisional, temporary, emergency, or unlimited) used by the State to refer to different
kinds of certificates. However, private schools and public schools are not uniform in
requiring a certificate for employment as an elementary or secondary school teacher, and
a teacher’s certificate is not generally necessary for employment in institutions of higher
education or other educational establishments. Therefore, a teacher who is not certified
may be considered for exemption, provided that such individual is employed as a teacher
by the employing school or school system.
(d) The requirements of §541.300 and Subpart G (salary requirements) of this part do not
apply to the teaching professionals described in this section.
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§541.304 Practice of law or medicine.
(a) The term “employee employed in a bona fide professional capacity” in section 13(a)(1)
of the Act also shall mean:
(1) Any employee who is the holder of a valid license or certificate permitting the
practice of law or medicine or any of their branches and is actually engaged in the
practice thereof; and
(2) Any employee who is the holder of the requisite academic degree for the general
practice of medicine and is engaged in an internship or resident program pursuant
to the practice of the profession.
(b) In the case of medicine, the exemption applies to physicians and other practitioners
licensed and practicing in the field of medical science and healing or any of the medical
specialties practiced by physicians or practitioners. The term “physicians” includes
medical doctors including general practitioners and specialists, osteopathic physicians
(doctors of osteopathy), podiatrists, dentists (doctors of dental medicine), and
optometrists (doctors of optometry or bachelors of science in optometry).
(c) Employees engaged in internship or resident programs, whether or not licensed to
practice prior to commencement of the program, qualify as exempt professionals if they
enter such internship or resident programs after the earning of the appropriate degree
required for the general practice of their profession.
(d) The requirements of §541.300 and subpart G (salary requirements) of this part do not
apply to the employees described in this section.
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Subpart E—Computer Employees
§541.400 General rule for computer employees.
(a) Computer systems analysts, computer programmers, software engineers or other similarly
skilled workers in the computer field are eligible for exemption as professionals under
section 13(a)(1) of the Act and under section 13(a)(17) of the Act. Because job titles vary
widely and change quickly in the computer industry, job titles are not determinative of
the applicability of this exemption.
(b) The section 13(a)(1) exemption applies to any computer employee who is compensated
on a salary or fee basis at a rate of not less than $684 per week (or $455 per week if
employed in the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, or
the U.S. Virgin Islands by employers other than the Federal government, or $380 per
week if employed in American Samoa by employers other than the Federal government),
exclusive of board, lodging, or other facilities. The section 13(a)(17) exemption applies
to any computer employee compensated on an hourly basis at a rate of not less than
$27.63 an hour. In addition, under either section 13(a)(1) or section 13(a)(17) of the Act,
the exemptions apply only to computer employees whose primary duty consists of:
(1) The application of systems analysis techniques and procedures, including
consulting with users, to determine hardware, software or system functional
specifications;
(2) The design, development, documentation, analysis, creation, testing or
modification of computer systems or programs, including prototypes, based on
and related to user or system design specifications;
(3) The design, documentation, testing, creation or modification of computer
programs related to machine operating systems; or
(4) A combination of the aforementioned duties, the performance of which requires
the same level of skills.
(c) The term “salary basis” is defined at §541.602; “fee basis” is defined at §541.605;
“board, lodging or other facilities” is defined at §541.606; and “primary duty” is defined
at §541.700.
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§541.401 Computer manufacture and repair.
The exemption for employees in computer occupations does not include employees engaged in
the manufacture or repair of computer hardware and related equipment. Employees whose work
is highly dependent upon, or facilitated by, the use of computers and computer software
programs (e.g., engineers, drafters and others skilled in computer-aided design software), but
who are not primarily engaged in computer systems analysis and programming or other similarly
skilled computer-related occupations identified in §541.400(b), are also not exempt computer
professionals.
§541.402 Executive and administrative computer employees.
Computer employees within the scope of this exemption, as well as those employees not within
its scope, may also have executive and administrative duties which qualify the employees for
exemption under subpart B or subpart C of this part. For example, systems analysts and
computer programmers generally meet the duties requirements for the administrative exemption
if their primary duty includes work such as planning, scheduling, and coordinating activities
required to develop systems to solve complex business, scientific or engineering problems of the
employer or the employer’s customers. Similarly, a senior or lead computer programmer who
manages the work of two or more other programmers in a customarily recognized department or
subdivision of the employer, and whose recommendations as to the hiring, firing, advancement,
promotion or other change of status of the other programmers are given particular weight,
generally meets the duties requirements for the executive
exemption.
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Subpart F—Outside Sales Employees
§541.500 General rule for outside sales employees.
(a) The term “employee employed in the capacity of outside salesman” in section 13(a)(1) of
the Act shall mean any employee:
(1) Whose primary duty is:
(i) making sales within the meaning of section 3(k) of the Act, or
(ii) obtaining orders or contracts for services or for the use of facilities for
which a consideration will be paid by the client or customer; and
(2) Who is customarily and regularly engaged away from the employer’s place or
places of business in performing such primary duty.
(b) The term “primary duty” is defined at §541.700. In determining the primary duty of an
outside sales employee, work performed incidental to and in conjunction with the
employee’s own outside sales or solicitations, including incidental deliveries and
collections, shall be regarded as exempt outside sales work. Other work that furthers the
employee’s sales efforts also shall be regarded as exempt work including, for example,
writing sales reports, updating or revising the employee’s sales or display catalogue,
planning itineraries and attending sales conferences.
(c) The requirements of subpart G (salary requirements) of this part do not apply to the
outside sales employees described in this section.
§541.501 Making sales or obtaining orders.
(a) Section 541.500 requires that the employee be engaged in:
(1) Making sales within the meaning of section 3(k) of the Act, or
(2) Obtaining orders or contracts for services or for the use of facilities.
(b) Sales within the meaning of section 3(k) of the Act include the transfer of title to tangible
property, and in certain cases, of tangible and valuable evidences of intangible property.
Section 3(k) of the Act states that “sale” or “sell” includes any sale, exchange, contract to
sell, consignment for sale, shipment for sale, or other disposition.
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(c) Exempt outside sales work includes not only the sales of commodities, but also
“obtaining orders or contracts for services or for the use of facilities for which a
consideration will be paid by the client or customer.” Obtaining orders for “the use of
facilities” includes the selling of time on radio or television, the solicitation of advertising
for newspapers and other periodicals, and the solicitation of freight for railroads and other
transportation agencies.
(d) The word “services” extends the outside sales exemption to employees who sell or take
orders for a service, which may be performed for the customer by someone other than the
person taking the order.
§541.502 Away from employer’s place of business.
An outside sales employee must be customarily and regularly engaged “away from the
employer’s place or places of business.” The outside sales employee is an employee who makes
sales at the customer’s place of business or, if selling door-to-door, at the customer’s home.
Outside sales does not include sales made by mail, telephone or the Internet unless such contact
is used merely as an adjunct to personal calls. Thus, any fixed site, whether home or office, used
by a salesperson as a headquarters or for telephonic solicitation of sales is considered one of the
employer’s places of business, even though the employer is not in any formal sense the owner or
tenant of the property. However, an outside sales employee does not lose the exemption by
displaying samples in hotel sample rooms during trips from city to city; these sample rooms
should not be considered as the employer’s places of business. Similarly, an outside sales
employee does not lose the exemption by displaying the employer’s products at a trade show. If
selling actually occurs, rather than just sales promotion, trade shows of short duration (i.e., one
or two weeks) should not be considered as the employer’s place of business.
§541.503 Promotion work.
(a) Promotion work is one type of activity often performed by persons who make sales,
which may or may not be exempt outside sales work, depending upon the circumstances
under which it is performed. Promotional work that is actually performed incidental to
and in conjunction with an employee’s own outside sales or solicitations is exempt work.
On the other hand, promotional work that is incidental to sales made, or to be made, by
someone else is not exempt outside sales work. An employee who does not satisfy the
requirements of this subpart may still qualify as an exempt employee under other
subparts of this rule.
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(b) A manufacturer’s representative, for example, may perform various types of promotional
activities such as putting up displays and posters, removing damaged or spoiled stock
from the merchant’s shelves or rearranging the merchandise. Such an employee can be
considered an exempt outside sales employee if the employee’s primary duty is making
sales or contracts. Promotion activities directed toward consummation of the employee’s
own sales are exempt. Promotional activities designed to stimulate sales that will be made
by someone else are not exempt outside sales work.
(c) Another example is a company representative who visits chain stores, arranges the
merchandise on shelves, replenishes stock by replacing old with new merchandise, sets
up displays and consults with the store manager when inventory runs low, but does not
obtain a commitment for additional purchases. The arrangement of merchandise on the
shelves or the replenishing of stock is not exempt work unless it is incidental to and in
conjunction with the employee’s own outside sales. Because the employee in this instance
does not consummate the sale nor direct efforts toward the consummation of a sale, the
work is not exempt outside sales work.
§541.504 Drivers who sell.
(a) Drivers who deliver products and also sell such products may qualify as exempt outside
sales employees only if the employee has a primary duty of making sales. In determining
the primary duty of drivers who sell, work performed incidental to and in conjunction
with the employee’s own outside sales or solicitations, including loading, driving or
delivering products, shall be regarded as exempt outside sales work.
(b) Several factors should be considered in determining if a driver has a primary duty of
making sales, including, but not limited to: a comparison of the driver’s duties with those
of other employees engaged as truck drivers and as salespersons; possession of a selling
or solicitor’s license when such license is required by law or ordinances; presence or
absence of customary or contractual arrangements concerning amounts of products to be
delivered; description of the employee’s occupation in collective bargaining agreements;
the employer’s specifications as to qualifications for hiring; sales training; attendance at
sales conferences; method of payment; and proportion of earnings directly attributable to
sales.
(c) Drivers who may qualify as exempt outside sales employees include:
(1) A driver who provides the only sales contact between the employer and the
customers visited, who calls on customers and takes orders for products, who
delivers products from stock in the employee’s vehicle or procures and delivers
the product to the customer on a later trip, and who receives compensation
commensurate with the volume of products sold.
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(2) A driver who obtains or solicits orders for the employer’s products from persons
who have authority to commit the customer for purchases.
(3) A driver who calls on new prospects for customers along the employee’s route and
attempts to convince them of the desirability of accepting regular delivery of
goods.
(4) A driver who calls on established customers along the route and persuades regular
customers to accept delivery of increased amounts of goods or of new products,
even though the initial sale or agreement for delivery was made by someone else.
(d) Drivers who generally would not qualify as exempt outside sales employees include:
(1) A route driver whose primary duty is to transport products sold by the employer
through vending machines and to keep such machines stocked, in good operating
condition, and in good locations.
(2) A driver who often calls on established customers day after day or week after
week, delivering a quantity of the employer’s products at each call when the sale
was not significantly affected by solicitations of the customer by the delivering
driver or the amount of the sale is determined by the volume of the customer’s
sales since the previous delivery.
(3) A driver primarily engaged in making deliveries to customers and performing
activities intended to promote sales by customers (including placing point-of-sale
and other advertising materials, price stamping commodities, arranging
merchandise on shelves, in coolers or in cabinets, rotating stock according to date,
and cleaning and otherwise servicing display cases), unless such work is in
furtherance of the driver’s own sales efforts.
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Subpart G—Salary Requirements
§541.600 Amount of salary required.
(a) To qualify as an exempt executive, administrative or professional employee under section
13(a)(1) of the Act, an employee must be compensated on a salary basis at a rate of not
less than $684 per week (or $455 per week if employed in the Commonwealth of the
Northern Mariana Islands, Guam, Puerto Rico, or the U.S. Virgin Islands by employers
other than the Federal Government, or $380 per week if employed in American Samoa by
employers other than the Federal Government), exclusive of board, lodging or other
facilities. Administrative and professional employees may also be paid on a fee basis, as
defined in §541.605.
(b) The required amount of compensation per week may be translated into equivalent
amounts for periods longer than one week. For example, the $684-per-week requirement
will be met if the employee is compensated biweekly on a salary basis of not less than
$1,368, semimonthly on a salary basis of not less than $1,482, or monthly on a salary
basis of not less than $2,964. However, the shortest period of payment that will meet this
compensation requirement is one week.
(c) In the case of academic administrative employees, the compensation requirement also
may be met by compensation on a salary basis at a rate at least equal to the entrance
salary for teachers in the educational establishment by which the employee is employed,
as provided in §541.204(a)(1).
(d) In the case of computer employees, the compensation requirement also may be met by
compensation on an hourly basis at a rate not less than $27.63 an hour, as provided in
§541.400(b).
(e) In the case of professional employees, the compensation requirements in this section shall
not apply to employees engaged as teachers (see §541.303); employees who hold a valid
license or certificate permitting the practice of law or medicine or any of their branches
and are actually engaged in the practice thereof (see §541.304); or to employees who
hold the requisite academic degree for the general practice of medicine and are engaged
in an internship or resident program pursuant to the practice of the profession (see
§541.304). In the case of medical occupations, the exception from the salary or fee
requirement does not apply to pharmacists, nurses, therapists, technologists, sanitarians,
dietitians, social workers, psychologists, psychometrists, or other professions which
service the medical profession.
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§541.601 Highly compensated employees.
(a)
(1) Beginning on January 1, 2020, an employee with total annual compensation of at
least $107,432 is deemed exempt under section 13(a)(1) of the Act if the
employee customarily and regularly performs any one or more of the exempt
duties or responsibilities of an executive, administrative or professional employee
as identified in subparts B, C or D of this part.
(2) Where the annual period covers periods both prior to and after January 1, 2020,
the amount of total annual compensation due will be determined on a proportional
basis.
(b)
(1) “Total annual compensation” must include at least $684 per week paid on a salary
or fee basis as set forth in §§541.602 and 541.605, except that §541.602(a)(3)
shall not apply to highly compensated employees. Total annual compensation
may also include commissions, nondiscretionary bonuses and other
nondiscretionary compensation earned during a 52-week period. Total annual
compensation does not include board, lodging and other facilities as defined in
§541.606, and does not include payments for medical insurance, payments for life
insurance, contributions to retirement plans and the cost of other fringe benefits.
(2) If an employee’s total annual compensation does not total at least the amount
specified in the applicable subsection of paragraph (a) by the last pay period of
the 52-week period, the employer may, during the last pay period or within one
month after the end of the 52-week period, make one final payment sufficient to
achieve the required level. For example, for a 52-week period beginning January
1, 2020, an employee may earn $90,000 in base salary, and the employer may
anticipate based upon past sales that the employee also will earn $17,432 in
commissions. However, due to poor sales in the final quarter of the year, the
employee actually only earns $12,000 in commissions. In this situation, the
employer may within one month after the end of the year make a payment of at
least $5,432 to the employee. Any such final payment made after the end of the
52-week period may count only toward the prior year’s total annual compensation
and not toward the total annual compensation in the year it was paid. If the
employer fails to make such a payment, the employee does not qualify as a highly
compensated employee, but may still qualify as exempt under subparts B, C, or D
of this part.
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(c) A high level of compensation is a strong indicator of an employee’s exempt status, thus
eliminating the need for a detailed analysis of the employee’s job duties. Thus, a highly
compensated employee will qualify for exemption if the employee customarily and
regularly performs any one or more of the exempt duties or responsibilities of an
executive, administrative or professional employee identified in subparts B, C or D of
this part. An employee may qualify as a highly compensated executive employee, for
example, if the employee customarily and regularly directs the work of two or more other
employees, even though the employee does not meet all of the other requirements for the
executive exemption under §541.100.
(d) This section applies only to employees whose primary duty includes performing office or
non-manual work. Thus, for example, non-management production-line workers and non-
management employees in maintenance, construction and similar occupations such as
carpenters, electricians, mechanics, plumbers, iron workers, craftsmen, operating
engineers, longshoremen, construction workers, laborers and other employees who
perform work involving repetitive operations with their hands, physical skill and energy
are not exempt under this section no matter how highly paid they might be.
§541.602 Salary basis.
(a) General rule. An employee will be considered to be paid on a “salary basis” within the
meaning of this part if the employee regularly receives each pay period on a weekly, or
less frequent basis, a predetermined amount constituting all or part of the employee’s
compensation, which amount is not subject to reduction because of variations in the
quality or quantity of the work performed.
(1) Subject to the exceptions provided in paragraph (b) of this section, an exempt
employee must receive the full salary for any week in which the employee
performs any work without regard to the number of days or hours worked.
Exempt employees need not be paid for any workweek in which they perform no
work.
(2) An employee is not paid on a salary basis if deductions from the employee’s
predetermined compensation are made for absences occasioned by the employer
or by the operating requirements of the business. If the employee is ready, willing
and able to work, deductions may not be made for time when work is not
available.
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(3) Up to ten percent of the salary amount required by §541.600(a) may be satisfied
by the payment of nondiscretionary bonuses, incentives and commissions, that are
paid annually or more frequently. The employer may utilize any 52-week period
as the year, such as a calendar year, a fiscal year, or an anniversary of hire year. If
the employer does not identify some other year period in advance, the calendar
year will apply. This provision does not apply to highly compensated employees
under §541.601.
(i) If by the last pay period of the 52-week period the sum of the employee’s
weekly salary plus nondiscretionary bonus, incentive, and commission
payments received is less than 52 times the weekly salary amount required
by §541.600(a), the employer may make one final payment sufficient to
achieve the required level no later than the next pay period after the end of
the year. Any such final payment made after the end of the 52-week period
may count only toward the prior year’s salary amount and not toward the
salary amount in the year it was paid.
(ii) An employee who does not work a full 52-week period for the employer,
either because the employee is newly hired after the beginning of this
period or ends the employment before the end of this period, may qualify
for exemption if the employee receives a pro rata portion of the minimum
amount established in paragraph (a)(3) of this section, based upon the
number of weeks that the employee will be or has been employed. An
employer may make one final payment as under paragraph (a)(3)(i) of this
section within one pay period after the end of employment.
(b) Exceptions. The prohibition against deductions from pay in the salary basis requirement
is subject to the following exceptions:
(1) Deductions from pay may be made when an exempt employee is absent from
work for one or more full days for personal reasons, other than sickness or
disability. Thus, if an employee is absent for two full days to handle personal
affairs, the employee’s salaried status will not be affected if deductions are made
from the salary for two full-day absences. However, if an exempt employee is
absent for one and a half days for personal reasons, the employer can deduct only
for the one full-day absence.
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(2) Deductions from pay may be made for absences of one or more full days
occasioned by sickness or disability (including work-related accidents) if the
deduction is made in accordance with a bona fide plan, policy or practice of
providing compensation for loss of salary occasioned by such sickness or
disability. The employer is not required to pay any portion of the employee’s
salary for full-day absences for which the employee receives compensation under
the plan, policy or practice. Deductions for such full-day absences also may be
made before the employee has qualified under the plan, policy or practice, and
after the employee has exhausted the leave allowance thereunder. Thus, for
example, if an employer maintains a short-term disability insurance plan
providing salary replacement for 12 weeks starting on the fourth day of absence,
the employer may make deductions from pay for the three days of absence before
the employee qualifies for benefits under the plan; for the twelve weeks in which
the employee receives salary replacement benefits under the plan; and for
absences after the employee has exhausted the 12 weeks of salary replacement
benefits. Similarly, an employer may make deductions from pay for absences of
one or more full days if salary replacement benefits are provided under a State
disability insurance law or under a State workers’ compensation law.
(3) While an employer cannot make deductions from pay for absences of an exempt
employee occasioned by jury duty, attendance as a witness or temporary military
leave, the employer can offset any amounts received by an employee as jury fees,
witness fees or military pay for a particular week against the salary due for that
particular week without loss of the exemption.
(4) Deductions from pay of exempt employees may be made for penalties imposed in
good faith for infractions of safety rules of major significance. Safety rules of
major significance include those relating to the prevention of serious danger in the
workplace or to other employees, such as rules prohibiting smoking in explosive
plants, oil refineries and coal mines.
(5) Deductions from pay of exempt employees may be made for unpaid disciplinary
suspensions of one or more full days imposed in good faith for infractions of
workplace conduct rules. Such suspensions must be imposed pursuant to a written
policy applicable to all employees. Thus, for example, an employer may suspend
an exempt employee without pay for three days for violating a generally
applicable written policy prohibiting sexual harassment. Similarly, an employer
may suspend an exempt employee without pay for twelve days for violating a
generally applicable written policy prohibiting workplace violence.
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(6) An employer is not required to pay the full salary in the initial or terminal week of
employment. Rather, an employer may pay a proportionate part of an employee’s
full salary for the time actually worked in the first and last week of employment.
In such weeks, the payment of an hourly or daily equivalent of the employee’s full
salary for the time actually worked will meet the requirement. However,
employees are not paid on a salary basis within the meaning of these regulations if
they are employed occasionally for a few days, and the employer pays them a
proportionate part of the weekly salary when so employed.
(7) An employer is not required to pay the full salary for weeks in which an exempt
employee takes unpaid leave under the Family and Medical Leave Act. Rather,
when an exempt employee takes unpaid leave under the Family and Medical
Leave Act, an employer may pay a proportionate part of the full salary for time
actually worked. For example, if an employee who normally works 40 hours per
week uses four hours of unpaid leave under the Family and Medical Leave Act,
the employer could deduct 10 percent of the employee’s normal salary that week.
(c) When calculating the amount of a deduction from pay allowed under paragraph (b) of this
section, the employer may use the hourly or daily equivalent of the employee’s full
weekly salary or any other amount proportional to the time actually missed by the
employee. A deduction from pay as a penalty for violations of major safety rules under
paragraph (b)(4) of this section may be made in any amount.
§541.603 Effect of improper deductions from salary.
(a) An employer who makes improper deductions from salary shall lose the exemption if the
facts demonstrate that the employer did not intend to pay employees on a salary basis. An
actual practice of making improper deductions demonstrates that the employer did not
intend to pay employees on a salary basis. The factors to consider when determining
whether an employer has an actual practice of making improper deductions include, but
are not limited to: the number of improper deductions, particularly as compared to the
number of employee infractions warranting discipline; the time period during which the
employer made improper deductions; the number and geographic location of employees
whose salary was improperly reduced; the number and geographic location of managers
responsible for taking the improper deductions; and whether the employer has a clearly
communicated policy permitting or prohibiting improper deductions.
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(b) If the facts demonstrate that the employer has an actual practice of making improper
deductions, the exemption is lost during the time period in which the improper deductions
were made for employees in the same job classification working for the same managers
responsible for the actual improper deductions. Employees in different job classifications
or who work for different managers do not lose their status as exempt employees. Thus,
for example, if a manager at a company facility routinely docks the pay of engineers at
that facility for partial-day personal absences, then all engineers at that facility whose pay
could have been improperly docked by the manager would lose the exemption; engineers
at other facilities or working for other managers, however, would remain exempt.
(c) Improper deductions that are either isolated or inadvertent will not result in loss of the
exemption for any employees subject to such improper deductions, if the employer
reimburses the employees for such improper deductions.
(d) If an employer has a clearly communicated policy that prohibits the improper pay
deductions specified in §541.602(a) and includes a complaint mechanism, reimburses
employees for any improper deductions and makes a good faith commitment to comply
in the future, such employer will not lose the exemption for any employees unless the
employer willfully violates the policy by continuing to make improper deductions after
receiving employee complaints. If an employer fails to reimburse employees for any
improper deductions or continues to make improper deductions after receiving employee
complaints, the exemption is lost during the time period in which the improper
deductions were made for employees in the same job classification working for the same
managers responsible for the actual improper deductions. The best evidence of a clearly
communicated policy is a written policy that was distributed to employees prior to the
improper pay deductions by, for example, providing a copy of the policy to employees at
the time of hire, publishing the policy in an employee handbook or publishing the policy
on the employer’s Intranet.
(e) This section shall not be construed in an unduly technical manner so as to defeat the
exemption.
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§541.604 Minimum guarantee plus extras.
(a) An employer may provide an exempt employee with additional compensation without
losing the exemption or violating the salary basis requirement, if the employment
arrangement also includes a guarantee of at least the minimum weekly-required amount
paid on a salary basis. Thus, for example, an exempt employee guaranteed at least $684
each week paid on a salary basis may also receive additional compensation of a one
percent commission on sales. An exempt employee also may receive a percentage of the
sales or profits of the employer if the employment arrangement also includes a guarantee
of at least $684 each week paid on a salary basis. Similarly, the exemption is not lost if an
exempt employee who is guaranteed at least $684 each week paid on a salary basis also
receives additional compensation based on hours worked for work beyond the normal
workweek. Such additional compensation may be paid on any basis (e.g., flat sum, bonus
payment, straight-time hourly amount, time and one-half or any other basis), and may
include paid time off.
(b) An exempt employee’s earnings may be computed on an hourly, a daily or a shift basis,
without losing the exemption or violating the salary basis requirement, if the employment
arrangement also includes a guarantee of at least the minimum weekly required amount
paid on a salary basis regardless of the number of hours, days or shifts worked, and a
reasonable relationship exists between the guaranteed amount and the amount actually
earned. The reasonable relationship test will be met if the weekly guarantee is roughly
equivalent to the employee’s usual earnings at the assigned hourly, daily or shift rate for
the employee’s normal scheduled workweek. Thus, for example, an exempt employee
guaranteed compensation of at least $725 for any week in which the employee performs
any work, and who normally works four or five shifts each week, may be paid $210 per
shift without violating the $684-per-week salary basis requirement. The reasonable
relationship requirement applies only if the employee’s pay is computed on an hourly,
daily or shift basis. It does not apply, for example, to an exempt store manager paid a
guaranteed salary per week that exceeds the current salary level who also receives a
commission of one-half percent of all sales in the store or five percent of the store’s
profits, which in some weeks may total as much as, or even more than, the guaranteed
salary.
§541.605 Fee basis.
(a) Administrative and professional employees may be paid on a fee basis, rather than on a
salary basis. An employee will be considered to be paid on a “fee basis” within the
meaning of these regulations if the employee is paid an agreed sum for a single job
regardless of the time required for its completion. These payments resemble piecework
payments with the important distinction that generally a “fee” is paid for the kind of job
that is unique rather than for a series of jobs repeated an indefinite number of times and
for which payment on an identical basis is made over and over again. Payments based on
the number of hours or days worked and not on the accomplishment of a given single task
are not considered payments on a fee basis.
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(b) To determine whether the fee payment meets the minimum amount of salary required for
exemption under these regulations, the amount paid to the employee will be tested by
determining the time worked on the job and whether the fee payment is at a rate that
would amount to at least the minimum salary per week, as required by §§541.600(a) and
541.602(a), if the employee worked 40 hours. Thus, an artist paid $350 for a picture that
took 20 hours to complete meets the $684 minimum salary requirement for exemption
since earnings at this rate would yield the artist $700 if 40 hours were worked.
§541.606 Board, lodging or other facilities.
(a) To qualify for exemption under section 13(a)(1) of the Act, an employee must earn the
minimum salary amount set forth in §541.600, “exclusive of board, lodging or other
facilities.” The phrase “exclusive of board, lodging or other facilities” means “free and
clear” or independent of any claimed credit for non-cash items of value that an employer
may provide to an employee. Thus, the costs incurred by an employer to provide an
employee with board, lodging or other facilities may not count towards the minimum
salary amount required for exemption under this part 541. Such separate transactions are
not prohibited between employers and their exempt employees, but the costs to
employers associated with such transactions may not be considered when determining if
an employee has received the full required minimum salary payment.
(b) Regulations defining what constitutes “board, lodging, or other facilities” are contained
in 29 CFR part 531. As described in 29 CFR 531.32, the term “other facilities” refers to
items similar to board and lodging, such as meals furnished at company restaurants or
cafeterias or by hospitals, hotels, or restaurants to their employees; meals, dormitory
rooms, and tuition furnished by a college to its student employees; merchandise furnished
at company stores or commissaries, including articles of food, clothing, and household
effects; housing furnished for dwelling purposes; and transportation furnished to
employees for ordinary commuting between their homes and work.
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§541.607 Automatic updates to amounts of salary and compensation required.
(a) Standard salary level. The amount required to be paid to an exempt employee on a salary
or fee basis, as applicable, pursuant to §§541.100(a)(1), 541.200(a)(1), 541.204(a)(1),
541.300(a)(1), 541.400(b), 541.600(a)-(b), 541.601(b)(1), 541.604(a), and 541.605(b), is:
(1) 913 per week as of December 1, 2016; and
(2) Beginning on January 1, 2020, and every three years thereafter, updated to equal
the 40th percentile of weekly earnings of full-time nonhourly workers in the
lowest-wage Census Region in the second quarter of the year preceding the
update as published by the Bureau of Labor Statistics.
(b) American Samoa. The amount required to be paid to an exempt employee employed in
American Samoa, on a salary or fee basis, pursuant to §§541.100(a)(1), 541.200(a)(1),
541.204(a)(1), 541.300(a)(1), 541.400(b), and 541.600(a), is:
(1) $767 per week as of December 1, 2016; and
(2) Beginning on January 1, 2020, and every three years thereafter:
(i) Updated to correspond to 84 percent of the updated salary set in paragraph
(a)(2) of this section; and
(ii) Rounded to the nearest multiple of $1.00;
(3) Provided that when the highest industry minimum wage for American Samoa
equals the minimum wage under 29 U.S.C. 206(a)(1), exempt employees
employed in all industries in American Samoa shall be paid the rate specified in
paragraph (a) of this section.
(c) Motion picture producing industry. The amount required to be paid to an exempt motion
picture producing employee pursuant to §541.709 is:
(1) $1,397 per week as of December 1, 2016; and
(2) Beginning on January 1, 2020, and every three years thereafter:
(i) Updated from the previously applicable base rate, adjusted by the same
percentage as the updated salary set in paragraph (a)(2) of this section; and
(ii) Rounded to the nearest multiple of $1.00.
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(d) The amount required in total annual compensation for an exempt highly compensated
employee pursuant to §541.601, is:
(1) $134,004 per year as of December 1, 2016; and
(2) Beginning on January 1, 2020, and every three years thereafter, updated to
correspond to the annualized earnings amount of the 90th percentile of full-time
nonhourly workers nationally in the second quarter of the year preceding the
update as published by the Bureau of Labor Statistics.
(e) The Secretary will determine the lowest-wage Census Region for paragraphs (a) and (b)
of this section using the 40th percentile of weekly earnings of full-time nonhourly
workers in the Census Regions based on data from the Current Population Survey as
published by the Bureau of Labor Statistics.
(f) The Secretary will use the 90th percentile of weekly earnings data of full-time nonhourly
workers nationally based on data from the Current Population Survey as published by the
Bureau of Labor Statistics for paragraph (d) of this section.
(g) Not less than 150 days before the January 1st effective date of the updated earnings
requirements for this section, the Secretary will publish a notice in the Federal Register
stating the updated amounts for paragraphs (a) through (d) of this section.
(h) The Wage and Hour Division will publish and maintain on its Web site the applicable
earnings requirements for employees paid pursuant to this part.
29 C.F.R. §§ 541.0-541.710 (Page 41 of 47)
2020 March 5 (TJG)
Subpart H—Definitions and Miscellaneous Provisions
§541.700 Primary duty.
(a) To qualify for exemption under this part, an employee’s “primary duty” must be the
performance of exempt work. The term “primary duty” means the principal, main, major
or most important duty that the employee performs. Determination of an employee’s
primary duty must be based on all the facts in a particular case, with the major emphasis
on the character of the employee’s job as a whole. Factors to consider when determining
the primary duty of an employee include, but are not limited to, the relative importance of
the exempt duties as compared with other types of duties; the amount of time spent
performing exempt work; the employee’s relative freedom from direct supervision; and
the relationship between the employee’s salary and the wages paid to other employees for
the kind of nonexempt work performed by the employee.
(b) The amount of time spent performing exempt work can be a useful guide in determining
whether exempt work is the primary duty of an employee. Thus, employees who spend
more than 50 percent of their time performing exempt work will generally satisfy the
primary duty requirement. Time alone, however, is not the sole test, and nothing in this
section requires that exempt employees spend more than 50 percent of their time
performing exempt work. Employees who do not spend more than 50 percent of their
time performing exempt duties may nonetheless meet the primary duty requirement if the
other factors support such a conclusion.
(c) Thus, for example, assistant managers in a retail establishment who perform exempt
executive work such as supervising and directing the work of other employees, ordering
merchandise, managing the budget and authorizing payment of bills may have
management as their primary duty even if the assistant managers spend more than 50
percent of the time performing nonexempt work such as running the cash register.
However, if such assistant managers are closely supervised and earn little more than the
nonexempt employees, the assistant managers generally would not satisfy the primary
duty requirement.
§541.701 Customarily and regularly.
The phrase “customarily and regularly” means a frequency that must be greater than occasional
but which, of course, may be less than constant. Tasks or work performed “customarily and
regularly” includes work normally and recurrently performed every workweek; it does not
include isolated or one-time tasks.
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§541.702 Exempt and nonexempt work.
The term “exempt work” means all work described in §§541.100, 541.101, 541.200, 541.300,
541.301, 541.302, 541.303, 541.304, 541.400 and 541.500, and the activities directly and closely
related to such work. All other work is considered “nonexempt.”
§541.703 Directly and closely related.
(a) Work that is “directly and closely related” to the performance of exempt work is also
considered exempt work. The phrase “directly and closely related” means tasks that are
related to exempt duties and that contribute to or facilitate performance of exempt work.
Thus, “directly and closely related” work may include physical tasks and menial tasks
that arise out of exempt duties, and the routine work without which the exempt
employee’s exempt work cannot be performed properly. Work “directly and closely
related” to the performance of exempt duties may also include recordkeeping; monitoring
and adjusting machinery; taking notes; using the computer to create documents or
presentations; opening the mail for the purpose of reading it and making decisions; and
using a photocopier or fax machine. Work is not “directly and closely related” if the work
is remotely related or completely unrelated to exempt duties.
(b) The following examples further illustrate the type of work that is and is not normally
considered as directly and closely related to exempt work:
(1) Keeping time, production or sales records for subordinates is work directly and
closely related to an exempt executive’s function of managing a department and
supervising employees.
(2) The distribution of materials, merchandise or supplies to maintain control of the
flow of and expenditures for such items is directly and closely related to the
performance of exempt duties.
(3) A supervisor who spot checks and examines the work of subordinates to
determine whether they are performing their duties properly, and whether the
product is satisfactory, is performing work which is directly and closely related to
managerial and supervisory functions, so long as the checking is distinguishable
from the work ordinarily performed by a nonexempt inspector.
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(4) A supervisor who sets up a machine may be engaged in exempt work, depending
upon the nature of the industry and the operation. In some cases the setup work,
or adjustment of the machine for a particular job, is typically performed by the
same employees who operate the machine. Such setup work is part of the
production operation and is not exempt. In other cases, the setting up of the work
is a highly skilled operation which the ordinary production worker or machine
tender typically does not perform. In large plants, non-supervisors may perform
such work. However, particularly in small plants, such work may be a regular
duty of the executive and is directly and closely related to the executive’s
responsibility for the work performance of subordinates and for the adequacy of
the final product. Under such circumstances, it is exempt work.
(5) A department manager in a retail or service establishment who walks about the
sales floor observing the work of sales personnel under the employee’s
supervision to determine the effectiveness of their sales techniques, checks on the
quality of customer service being given, or observes customer preferences is
performing work which is directly and closely related to managerial and
supervisory functions.
(6) A business consultant may take extensive notes recording the flow of work and
materials through the office or plant of the client; after returning to the office of
the employer, the consultant may personally use the computer to type a report and
create a proposed table of organization. Standing alone, or separated from the
primary duty, such note-taking and typing would be routine in nature. However,
because this work is necessary for analyzing the data and making
recommendations, the work is directly and closely related to exempt work. While
it is possible to assign note-taking and typing to nonexempt employees, and in
fact it is frequently the practice to do so, delegating such routine tasks is not
required as a condition of exemption.
(7) A credit manager who makes and administers the credit policy of the employer,
establishes credit limits for customers, authorizes the shipment of orders on credit,
and makes decisions on whether to exceed credit limits would be performing
work exempt under §541.200. Work that is directly and closely related to these
exempt duties may include checking the status of accounts to determine whether
the credit limit would be exceeded by the shipment of a new order, removing
credit reports from the files for analysis, and writing letters giving credit data and
experience to other employers or credit agencies.
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(8) A traffic manager in charge of planning a company’s transportation, including the
most economical and quickest routes for shipping merchandise to and from the
plant, contracting for common-carrier and other transportation facilities,
negotiating with carriers for adjustments for damages to merchandise, and making
the necessary rearrangements resulting from delays, damages or irregularities in
transit, is performing exempt work. If the employee also spends part of the day
taking telephone orders for local deliveries, such order-taking is a routine function
and is not directly and closely related to the exempt work.
(9) An example of work directly and closely related to exempt professional duties is a
chemist performing menial tasks such as cleaning a test tube in the middle of an
original experiment, even though such menial tasks can be assigned to laboratory
assistants.
(10) A teacher performs work directly and closely related to exempt duties when,
while taking students on a field trip, the teacher drives a school van or monitors
the students’ behavior in a restaurant.
§541.704 Use of manuals.
The use of manuals, guidelines or other established procedures containing or relating to highly
technical, scientific, legal, financial or other similarly complex matters that can be understood or
interpreted only by those with advanced or specialized knowledge or skills does not preclude
exemption under section 13(a)(1) of the Act or the regulations in this part. Such manuals and
procedures provide guidance in addressing difficult or novel circumstances and thus use of such
reference material would not affect an employee’s exempt status. The section 13(a)(1)
exemptions are not available, however, for employees who simply apply well-established
techniques or procedures described in manuals or other sources within closely prescribed limits
to determine the correct response to an inquiry or set of circumstances.
§541.705 Trainees.
The executive, administrative, professional, outside sales and computer employee exemptions do
not apply to employees training for employment in an executive, administrative, professional,
outside sales or computer employee capacity who are not actually performing the duties of an
executive, administrative, professional, outside sales or computer employee.
29 C.F.R. §§ 541.0-541.710 (Page 45 of 47)
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§541.706 Emergencies.
(a) An exempt employee will not lose the exemption by performing work of a normally
nonexempt nature because of the existence of an emergency. Thus, when emergencies
arise that threaten the safety of employees, a cessation of operations or serious damage to
the employer’s property, any work performed in an effort to prevent such results is
considered exempt work.
(b) An “emergency” does not include occurrences that are not beyond control or for which
the employer can reasonably provide in the normal course of business. Emergencies
generally occur only rarely, and are events that the employer cannot reasonably
anticipate.
(c) The following examples illustrate the distinction between emergency work considered
exempt work and routine work that is not exempt work:
(1) A mine superintendent who pitches in after an explosion and digs out workers
who are trapped in the mine is still a bona fide executive.
(2) Assisting nonexempt employees with their work during periods of heavy
workload or to handle rush orders is not exempt work.
(3) Replacing a nonexempt employee during the first day or partial day of an illness
may be considered exempt emergency work depending on factors such as the size
of the establishment and of the executive’s department, the nature of the industry,
the consequences that would flow from the failure to replace the ailing employee
immediately, and the feasibility of filling the employee’s place promptly.
(4) Regular repair and cleaning of equipment is not emergency work, even when
necessary to prevent fire or explosion; however, repairing equipment may be
emergency work if the breakdown of or damage to the equipment was caused by
accident or carelessness that the employer could not reasonably anticipate.
§541.707 Occasional tasks.
Occasional, infrequently recurring tasks that cannot practicably be performed by nonexempt
employees, but are the means for an exempt employee to properly carry out exempt functions
and responsibilities, are considered exempt work. The following factors should be considered in
determining whether such work is exempt work: Whether the same work is performed by any of
the exempt employee’s subordinates; practicability of delegating the work to a nonexempt
employee; whether the exempt employee performs the task frequently or occasionally; and
existence of an industry practice for the exempt employee to perform the task.
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§541.708 Combination exemptions.
Employees who perform a combination of exempt duties as set forth in the regulations in this
part for executive, administrative, professional, outside sales and computer employees may
qualify for exemption. Thus, for example, an employee whose primary duty involves a
combination of exempt administrative and exempt executive work may qualify for exemption. In
other words, work that is exempt under one section of this part will not defeat the exemption
under any other section.
§541.709 Motion picture producing industry.
The requirement that the employee be paid “on a salary basis” does not apply to an employee in
the motion picture producing industry who is compensated at a base rate of at least $1,043 per
week (exclusive of board, lodging, or other facilities). Thus, an employee in this industry who is
otherwise exempt under subparts B, C, or D of this part, and who is employed at a base rate of at
least the applicable current minimum amount a week is exempt if paid a proportionate amount
(based on a week of not more than 6 days) for any week in which the employee does not work a
full workweek for any reason. Moreover, an otherwise exempt employee in this industry
qualifies for exemption if the employee is employed at a daily rate under the following
circumstances:
(a) The employee is in a job category for which a weekly base rate is not provided and the
daily base rate would yield at least the minimum weekly amount if 6 days were worked;
or
(b) The employee is in a job category having the minimum weekly base rate and the daily
base rate is at least one-sixth of such weekly base rate.
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§541.710 Employees of public agencies.
(a) An employee of a public agency who otherwise meets the salary basis requirements of
§541.602 shall not be disqualified from exemption under §§541.100, 541.200, 541.300 or
541.400 on the basis that such employee is paid according to a pay system established by
statute, ordinance or regulation, or by a policy or practice established pursuant to
principles of public accountability, under which the employee accrues personal leave and
sick leave and which requires the public agency employee’s pay to be reduced or such
employee to be placed on leave without pay for absences for personal reasons or because
of illness or injury of less than one work-day when accrued leave is not used by an
employee because:
(1) Permission for its use has not been sought or has been sought and denied;
(2) Accrued leave has been exhausted; or
(3) The employee chooses to use leave without pay.
(b) Deductions from the pay of an employee of a public agency for absences due to a budget-
required furlough shall not disqualify the employee from being paid on a salary basis
except in the workweek in which the furlough occurs and for which the employee’s pay is
accordingly reduced.
Contents
- Subpart A: General Regulations
§541.0 Introductory statement.
§541.1 Terms used in regulations.
§541.2 Job titles insufficient.
§541.3 Scope of the section 13(a)(1) exemptions.
§541.4 Other laws and collective bargaining agreements.
- Subpart B: Executive Employees
§541.100 General rule for executive employees.
§541.101 Business owner.
§541.102 Management.
§541.103 Department or subdivision.
§541.104 Two or more other employees.
§541.105 Particular weight.
§541.106 Concurrent duties.
- Subpart C: Administrative Employees
§541.200 General rule for administrative employees.
§541.201 Directly related to management or general business operations.
§541.202 Discretion and independent judgment.
§541.203 Administrative exemption examples.
§541.204 Educational establishments.
- Subpart D: Professional Employees
§541.300 General rule for professional employees.
§541.301 Learned professionals.
§541.302 Creative professionals.
§541.303 Teachers.
§541.304 Practice of law or medicine.
- Subpart E: Computer Employees
§541.400 General rule for computer employees.
§541.401 Computer manufacture and repair.
§541.402 Executive and administrative computer employees.
- Subpart F: Outside Sales Employees
§541.500 General rule for outside sales employees.
§541.501 Making sales or obtaining orders.
§541.502 Away from employer’s place of business.
§541.503 Promotion work.
- §541.504 Drivers who sell.
- Subpart G: Salary Requirements
§541.600 Amount of salary required.
§541.601 Highly compensated employees.
§541.602 Salary basis.
§541.603 Effect of improper deductions from salary.
§541.604 Minimum guarantee plus extras.
§541.605 Fee basis.
§541.606 Board, lodging or other facilities.
§541.607 Automatic updates to amounts of salary and compensation required.
- Subpart H: Definitions and Miscellaneous Provisions
§541.700 Primary duty.
§541.701 Customarily and regularly.
§541.702 Exempt and nonexempt work.
§541.703 Directly and closely related.
§541.704 Use of manuals.
§541.705 Trainees.
§541.706 Emergencies.
§541.707 Occasional tasks.
§541.708 Combination exemptions.
§541.709 Motion picture producing industry.
§541.710 Employees of public agencies.
