[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: 29CFR541.2]

[Page 179-180]
 
                             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. 541.2  Administrative.

    The term employee employed in a bona fide * * * administrative * * * 
capacity in section 13(a)(1) of the Act shall mean any employee:
    (a) Whose primary duty consists of either:
    (1) The performance of office or nonmanual work directly related to 
management policies or general business operations of his employer or 
his employer's customers, or
    (2) The performance of functions in the administration of a school 
system, or educational establishment or institution, or of a department 
or subdivision thereof, in work directly related to the academic 
instruction or training carried on therein; and
    (b) Who customarily and regularly exercises discretion and 
independent judgment; and

[[Page 180]]

    (c)(1) Who regularly and directly assists a proprietor, or an 
employee employed in a bona fide executive or administrative capacity 
(as such terms are defined in the regulations of this subpart), or
    (2) Who performs under only general supervision work along 
specialized or technical lines requiring special training, experience, 
or knowledge, or
    (3) Who executes under only general supervision special assignments 
and tasks; and
    (d) 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 worked in the workweek to activities 
which are not directly and closely related to the performance of the 
work described in paragraphs (a) through (c) of this section; and
    (e)(1) Who is compensated for his services on a salary or fee basis 
at a rate of not less than $155 per week ($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, or
    (2) Who, in the case of academic administrative personnel, is 
compensated for services as required by paragraph (e)(1) of this 
section, or on a salary basis which is at least equal to the entrance 
salary for teachers in the school system, educational establishment, or 
institution by which employed: Provided, That an employee who is 
compensated on a salary or fee basis at a rate of not less than $250 per 
week ($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 
performance of work described in paragraph (a) of this section, which 
includes work requiring the exercise of discretion and independent 
judgment, 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 (e) in Sec. 541.2 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 (e) set forth above remains in effect pending 
further action by the issuing agency. The text of the postponed 
regulation appears below.

Sec. 541.2  Administrative.

                                * * * * *

    (e)(1) Who is compensated for his services on a salary or fee basis 
at a rate of not less than $225 per week beginning February 13, 1981 and 
$250 per week beginning February 13, 1983 ($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, or
    (2) Who, in the case of academic administrative personnel, is 
compensated for services as required by paragraph (e)(1) of this 
section, or on a salary basis which is at least equal to the entrance 
salary for teachers in the school system, educational establishment, or 
institution by which employed: Provided, That an employee who is 
compensated on a salary or fee basis at a rate of not less than $320 per 
week beginning February 13, 1981 and $345 per week beginning February 
13, 1983 ($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 performance of work described in paragraph (a) of this 
section, which includes work requiring the exercise of discretion and 
independent judgment, shall be deemed to meet all the requirements of 
this section.