[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: 29CFR541.114]

[Page 192]
 
                             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 B_Interpretations
 
Sec. 541.114  Exception for owners of 20-percent interest.

    (a) An exception from the percentage limitations on nonexempt work 
is provided in Sec. 541.1(e) for an employee ``who owns at least a 20-
percent interest in the enterprise in which he is employed''. This 
provision recognizes the special status of a shareholder of an 
enterprise who is actively engaged in its management.
    (b) The exception is available to an employee owning a bona fide 20-
percent equity in the enterprise in which he is employed regardless of 
whether the business is a corporate or other type of organization.