[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: 29CFR541.214] [Page 208-209] 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. 541.214 Special proviso for high salaried administrative employees. (a) Except as otherwise noted in paragraph (b) of this section, Sec. 541.2 contains a special proviso including within the definition of ``administrative'' an employee who is compensated on a salary or fee basis at a rate of not less than $250 per week exclusive of board, lodging, or other facilities, and whose primary duty consists of either the performance of office or nonmanual work directly related to management policies or general business operations of the employer or the employer's customers, or 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, where the performance of such primary duty includes work requiring the exercise of discretion and independent judgment. Such a highly paid employee having such work as his or her primary duty is deemed to meet all the requirements in Sec. 541.2 (a) through (e). If an employee qualifies for exemption under this provisio, it is not necessary to test the employee's qualifications in detail under Sec. 541.2 (a) through (e). (b) In Puerto Rico, the Virgin Islands, and American Samoa, the proviso of Sec. 541.2(e) applies to those administrative employees other than an employee of the Federal Government who are compensated on a salary or fee basis or not less than $200 per week. [40 FR 7093, Feb. 19, 1975] Effective Date Note: Section 541.214 was revised at 46 FR 3015, 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. 541.214 set forth above remains in effect pending further action by the issuing agency. The text of the postponed regulation appears below. Sec. 541.214 Special proviso for high salaried administrative employees. (a) Except as otherwise noted in paragraph (b) of this section, Sec. 541.2 contains a special proviso including within the definition of ``administrative'' 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, exclusive of board, lodging, or other facilities, and whose primary duty consists of either the performance of office or nonmanual work directly related to management policies or general business operations of the employer or the employer's customers, or 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, where the performance of such primary duty includes work requiring the exercise of discretion and independent judgment. Such a highly paid employee having such work as his or her primary duty is deemed to meet all the requirements in Sec. 541.2 (a) through (e). If an employee qualifies for exemption under this provisio, it is not necessary to test the employee's qualifications in detail under Sec. 541.2 (a) through (e). [[Page 209]] (b) In Puerto Rico, the Virgin Islands, and American Samoa, the proviso of Sec. 541.2(c) applies to those administrative employees other than an employee of the Federal Government who are compensated on a salary or fee basis or not less than $260 per week beginning February 13, 1981 and $285 per week beginning February 13, 1983.