[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR541.103]

[Page 180-181]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 541_DEFINING AND DELIMITING THE EXEMPTIONS FOR EXECUTIVE, 
 
                      Subpart B_Executive Employees
 
Sec. 541.103  Department or subdivision.

    (a) The phrase ``a customarily recognized department or 
subdivision'' is intended to distinguish between a mere collection of 
employees assigned from time to time to a specific job or series of jobs 
and a unit with permanent status and function. A customarily recognized 
department or subdivision must have a permanent status and a continuing 
function. For example, a large employer's human resources department 
might have subdivisions for labor relations, pensions and other 
benefits,

[[Page 181]]

equal employment opportunity, and personnel management, each of which 
has a permanent status and function.
    (b) When an enterprise has more than one establishment, the employee 
in charge of each establishment may be considered in charge of a 
recognized subdivision of the enterprise.
    (c) A recognized department or subdivision need not be physically 
within the employer's establishment and may move from place to place. 
The mere fact that the employee works in more than one location does not 
invalidate the exemption if other factors show that the employee is 
actually in charge of a recognized unit with a continuing function in 
the organization.
    (d) Continuity of the same subordinate personnel is not essential to 
the existence of a recognized unit with a continuing function. An 
otherwise exempt employee will not lose the exemption merely because the 
employee draws and supervises workers from a pool or supervises a team 
of workers drawn from other recognized units, if other factors are 
present that indicate that the employee is in charge of a recognized 
unit with a continuing function.