[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: 29CFR541.201]

[Page 182-183]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 541_DEFINING AND DELIMITING THE EXEMPTIONS FOR EXECUTIVE, 
 
                   Subpart C_Administrative Employees
 
Sec. 541.201  Directly related to management or general business 
operations.

    (a) To qualify for the administrative exemption, an employee's 
primary duty must be the performance of work directly related to the 
management or general business operations of the employer or the 
employer's customers. The phrase ``directly related to the management or 
general business operations'' refers to the type of work performed by 
the employee. To meet this requirement, an employee must perform work 
directly related to assisting with the running or servicing of the 
business, as distinguished, for example, from working on a manufacturing 
production line or selling a product in a retail or service 
establishment.
    (b) Work directly related to management or general business 
operations includes, but is not limited to, work in functional areas 
such as tax; finance; accounting; budgeting; auditing; insurance; 
quality control; purchasing; procurement; advertising; marketing; 
research; safety and health; personnel management; human resources; 
employee benefits; labor relations; public relations, government 
relations; computer network, internet and database administration; legal 
and regulatory compliance; and similar activities. Some of these 
activities may be performed by employees who also would qualify for 
another exemption.
    (c) An employee may qualify for the administrative exemption if the 
employee's primary duty is the performance of work directly related to 
the

[[Page 183]]

management or general business operations of the employer's customers. 
Thus, for example, employees acting as advisers or consultants to their 
employer's clients or customers (as tax experts or financial 
consultants, for example) may be exempt.