[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: 29CFR541.119]

[Page 196-197]
 
                             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. 541.119  Special proviso for high salaried executives.

    (a) Except as otherwise noted in paragraph (b) of this section, 
Sec. 541.1 contains an upset or high salary proviso for managerial 
employees who are compensated on a salary basis at a rate of not less 
than $250 per week exclusive of board, lodging, or other facilities. 
Such a highly paid employee is deemed to meet all the requirements in 
paragraphs (a) through (f) of Sec. 541.1 if the employee's primary duty 
consists of the management of the enterprise in which 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. If an employee qualifies for exemption under this 
proviso, it is not necessary to test

[[Page 197]]

that employee's qualifications in detail under paragraphs (a) through 
(f) of Sec. 541.1 of this part.
    (b) In Puerto Rico, the Virgin Islands, and American Samoa the 
proviso of Sec. 541.1(f) applies to those managerial employees (other 
than employees of the Federal Government) who are paid on a salary basis 
at a rate of not less than $200 per week.
    (c) Mechanics, carpenters, linotype operators, or craftsmen of other 
kinds are not exempt under the proviso no matter how highly paid they 
might be.

[40 FR 7093, Feb. 19, 1975]

    Effective Date Note: Section 541.119 was 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 Sec. 541.119 set forth above remains in effect pending 
further action by the issuing agency. The text of the postponed 
regulation appears below.

Sec. 541.119  Special proviso for high salaried executives.

    (a) Except as otherwise noted in paragraph (b) of this section, 
Sec. 541.1 contains an upset or high salary proviso for managerial 
employees who are 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 exclusive of board, lodging, or other 
facilities. Such a highly paid employee is deemed to meet all the 
requirements in paragraphs (a) through (f) of Sec. 541.1 if the 
employee's primary duty consists of the management of the enterprise in 
which 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. If an employee qualifies for 
exemption under this proviso, it is not necessary to test that 
employee's qualifications in detail under paragraphs (a) through (f) of 
Sec. 541.1 of this part.
    (b) In Puerto Rico, the Virgin Islands, and American Samoa the 
proviso of Sec. 541.1(f) applies to those managerial employees (other 
than employees of the Federal Government) who are paid on a salary basis 
at a rate of not less than $260 per week beginning February 13, 1981 and 
$285 per week beginning February 13, 1983.
    (c) Mechanics, carpenters, linotype operators, or craftsmen of other 
kinds are not exempt under the proviso no matter how highly paid they 
might be.

        Employee Employed in a Bona Fide Administrative Capacity