[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: 29CFR541.117]

[Page 194]
 
                             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. 541.117  Amount of salary required.

    (a) Except as otherwise noted in paragraph (b) of this section, 
compensation on a salary basis at a rate of not less than $155 per week, 
exclusive of board, lodging, or other facilities, is required for 
exemption as an executive. The $155 a week may be translated into 
equivalent amounts for periods longer than 1 week. The requirement will 
be met if the employee is compensated biweekly on a salary basis of 
$310, semimonthly on a salary basis of $335.84 or monthly on a salary 
basis of $671.67. However, the shortest period of payment which will 
meet the requirement of payment ``on a salary basis'' is a week.
    (b) In Puerto Rico, the Virgin Islands, and American Samoa, the 
salary test for exemption as an ``executive'' is $130 per week for other 
than an employee of the Federal Government.
    (c) The payment of the required salary must be exclusive of board, 
lodging, or other facilities; that is, free and clear. On the other 
hand, the regulations in subpart A of this part do not prohibit the sale 
of such facilities to executives on a cash basis if they are negotiated 
in the same manner as similar transactions with other persons.
    (d) The validity of including a salary requirement in the 
regulations in subpart A of this part has been sustained in a number of 
appellate court decisions. See, for example, Walling v. Yeakley, 140 F. 
(2d) 830 (C.A. 10); Helliwell v. Haberman, 140 F. (2d) 833 (C.A. 2); and 
Walling v. Morris, 155 F. (2d) 832 (C.A. 6) (reversed on another point 
in 332 U.S. 442); Wirtz v. Mississippi Publishers, 364 F. (2d) 603 (C.A. 
5); Craig v. Far West Engineering Co., 265 F. (2d) 251 (C.A. 9) cert. 
den. 361 U.S. 816; Hofer v. Federal Cartridge Corp., 71 F. Supp. 243 
(D.C. Minn.).

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

    Effective Date Note: Paragraphs (a) and (b) in Sec. 541.117 were 
revised at 46 FR 3014, 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 paragraphs (a) and (b) set forth above remains in effect 
pending further action by the issuing agency. The text of the postponed 
regulation appears below.

Sec. 541.117  Amount of salary required.

    (a) Except as otherwise noted in paragraph (b) of this section, 
compensation 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, exclusive of board, lodging, or other facilities, is required for 
exemption as an executive. The $225 a week or $250 a week may be 
translated into equivalent amounts for periods longer than 1 week. For 
example, based on $250 a week, the requirement will be met if the 
employee is compensated biweekly on a salary basis of $500, semimonthly 
on a salary basis of $541.67 or monthly on a salary basis of $1083.33. 
However, the shortest period of payment which will meet the requirement 
of payment ``on a salary basis'' is a week.
    (b) In Puerto Rico, the Virgin Islands, and American Samoa, the 
salary test for exemption as an ``executive'' is $180 per week beginning 
Febraruy 13, 1981 and $200 per week beginning February 13, 1983 for 
other than an employee of the Federal Goverment.

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