[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR541.1]

[Page 178-179]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 541_DEFINING AND DELIMITING THE TERMS ``ANY EMPLOYEE EMPLOYED IN A 
 
                      Subpart A_General Regulations
 
Sec. 541.1  Executive.

    The term employee employed in a bona fide executive * * * capacity 
in section 13(a) (1) of the Act shall mean any employee:
    (a) Whose primary duty consists of the management of the enterprise 
in

[[Page 179]]

which he is employed or of a customarily recognized department of 
subdivision thereof; and
    (b) Who customarily and regularly directs the work of two or more 
other employees therein; and
    (c) Who has the authority to hire or fire other employees or whose 
suggestions and recommendations as to the hiring or firing and as to the 
advancement and promotion or any other change of status of other 
employees will be given particular weight; and
    (d) Who customarily and regularly exercises discretionary powers; 
and
    (e) Who does not devote more than 20 percent, or, in the case of an 
employee of a retail or service establishment who does not devote as 
much as 40 percent, of his hours of work in the workweek to activities 
which are not directly and closely related to the performance of the 
work described in paragraphs (a) through (d) of this section: Provided, 
That this paragraph shall not apply in the case of an employee who is in 
sole charge of an independent establishment or a physically separated 
branch establishment, or who owns at least a 20-percent interest in the 
enterprise in which he is employed; and
    (f) Who is compensated for his services on a salary basis at a rate 
of not less than $155 per week (or $130 per week, if employed by other 
than the Federal Government in Puerto Rico, the Virgin Islands, or 
American Samoa), exclusive of board, lodging, or other facilities: 
Provided, That an employee who is compensated on a salary basis at a 
rate of not less than $250 per week (or $200 per week, if employed by 
other than the Federal Government in Puerto Rico, the Virgin Islands or 
American Samoa), exclusive of board, lodging, or other facilities, and 
whose primary duty consists of the management of the enterprise in which 
the employee is employed or of a customarily recognized department or 
subdivision thereof, and includes the customary and regular direction of 
the work of two or more other employees therein, shall be deemed to meet 
all the requirements of this section.

[38 FR 11390, May 7, 1973, as amended at 40 FR 7092, Feb. 19, 1975]

    Effective Date Note: Paragraph (f) in Sec. 541.1 was revised at 46 
FR 3013, Jan. 13, 1981. In accordance with the President's Memorandum of 
January 29, 1981 (46 FR 11227, Feb. 6, 1981), the effective date was 
postponed indefinitely at 46 FR 11972, Feb. 12, 1981.
    The text of paragraph (f) set forth above remains in effect pending 
further action by the issuing agency. The text of the postponed 
regulation appears below.

Sec. 541.1  Executive.

                                * * * * *

    (f) Who is compensated for his services on a salary basis at a rate 
of not less than $225 per week beginning February 13, 1981 and $250 per 
week beginning February 13, 1983 (or $180 per week beginning February 
13, 1981 and $200 per week beginning February 13, 1983. If employed by 
other than the Federal Government in Puerto Rico, the Virgin Islands, or 
American Samoa), exclusive of board, lodging, or other facilities: 
Provided, That an employee who is compensated on a salary basis at a 
rate of not less than $320 per week beginning February 13, 1981 and $345 
per week beginning February 13, 1983 (or $260 per week beginning 
February 13, 1981 and $285 per week beginning February 13, 1983, if 
employed by other than the Federal Government in Puerto Rico, the Virgin 
Islands or American Samoa), exclusive of board, lodging, or other 
facilities, and whose primary duty consists of the management of the 
enterprise in which the employee is employed or of a customarily 
recognized department or subdivision thereof, and includes the customary 
and regular direction of the work of two or more other employees 
therein, shall be deemed to meet all the requirements of this section.