[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: 29CFR541.605]

[Page 197-198]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 541_DEFINING AND DELIMITING THE EXEMPTIONS FOR EXECUTIVE, 
 
                      Subpart G_Salary Requirements
 
Sec. 541.605  Fee basis.

    (a) Administrative and professional employees may be paid on a fee 
basis, rather than on a salary basis. An employee will be considered to 
be paid on a ``fee basis'' within the meaning of these regulations if 
the employee is

[[Page 198]]

paid an agreed sum for a single job regardless of the time required for 
its completion. These payments resemble piecework payments with the 
important distinction that generally a ``fee'' is paid for the kind of 
job that is unique rather than for a series of jobs repeated an 
indefinite number of times and for which payment on an identical basis 
is made over and over again. Payments based on the number of hours or 
days worked and not on the accomplishment of a given single task are not 
considered payments on a fee basis.
    (b) To determine whether the fee payment meets the minimum amount of 
salary required for exemption under these regulations, the amount paid 
to the employee will be tested by determining the time worked on the job 
and whether the fee payment is at a rate that would amount to at least 
$455 per week if the employee worked 40 hours. Thus, an artist paid $250 
for a picture that took 20 hours to complete meets the minimum salary 
requirement for exemption since earnings at this rate would yield the 
artist $500 if 40 hours were worked.