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of Estado Libre Asociado de Puerto Rico OFICINA CENTRAL DE ASESORAMIENTO LABORAL Y DE ADMINISTRACION DE RECURSOS HUMANOS P.O. BOX 8476 San Juan, Puerto Rico 00910-8476 11 de mayo de 2004 MEMORANDO ESPECIAL NUM. 15-2004 Jefes de Administradores Individuales del Sistema de Personal, Jefes de Agencias Excluidas de la Ley de Personal del Servicio Piblico y Alcaldes y Presidentes de Asambleas Municipales Eonmbidthet Loo Emmalind Garcia Garcia Administradora ENMIENDA A LAS DISPOSICIONES FEDERALES REFERENTES AL PERSONAL EXENTO DE LA LEY FEDERAL DE NORMAS RAZONABLES DEL TRABAJO. El pasado 23 de abril de 2004, el Departamento del Trabajo de los Estados Unidos. promulgé las nuevas disposiciones que establecen cual es el personal exento del pago de tiempo extra de conformidad 2 la Ley Federal de Normas Razonables del Trabajo de 1938 (Fair Labor Standards Act - FLSA), enmendada por la Ley Piiblica Nim. 99-15 del 13 de noviembre de 1985, Mediante las mencionadas disposiciones se delimitan los ctiterios que se deben tomar en consideracién al momento de evaluar si algiin empleado es ejecutivo, administrativo, profesional o de informatica. La nueva reglamentacién establece el término de 120 dias para su efectividad, a fin de otorgar tiempo suficiente a los patronos para realizar los cambios necesarios con el propésito de cumplir con la misma, En vista de lo anterior, le corresponde a cada autoridad nominadora determinar, dentro de su estructura organizacional, el personal exento del disfrute de tiempo compensatorio y/o pago de horas extras de conformidad con la FLSA. Se acompatia copia de la nuevas disposiciones. Para informacién adicional, puede acudir a la pagina de internet del Departamento del Trabajo de Estados Unidos, www.dol.gov_ Este memorando especial tiene el propésito de informar la aprobacion de las nuevas normas relacionadas al personal exento de la FLSA. Para informacién adicional debera referirse a la Oficina Local de la Division de Horas y Salarios del Departamento del Trabajo Federal Proximamente se revisaré el Memorando Especial 39-2001 de 14 de diciembre de 2001, titulado Informacion sobre Horas Extras a tenor con la Ley Federal de Normas Razonables del Trabajo, acorde con las enmiendas aprobadas. AUTORIZADO POR LA COMISION ESTATAL DE ELECCIONES iste anuncio es requerido por la Ley Nim. 5 de T4 de octubre de 1975, enmendada, segiin se indios en la certficacién sometida el 23 de diciembre de 2003 260 Federal Register/Vol 65, No. 78/Friday, Apell 23, 2004/Rules and Regulations Des & Bradstreet (DAB, 20026) Industry Dormia Key Busses Ratios far sea ‘Year 2/2007 ‘un Bradsteot (D&B, 2002), Industry Dome ans Key Bsinaes Rats fy #6 Your 2001/2002 ‘Ball and #2ar "Unpaid Wook"; Econo, 6 271-290, 1909 ‘Bel. ier, Haber, ana Setsward “Paid sad Unpaid Oversme Wlrking in Canmacy find thu UK," IZA Disoueson Paper Numer 4353, Bono, Germany: The Insite for the Study of Labor, Macc 2000, [Lata Mt Botoe ane Caister. Fuses scompative Pay Policy: SPR 2002 Salary eam Inc List of Subjects in 29 GFR Part 541 Labor, Minimuro wages, Overtime poy, Salaries, Teachers, Wages. Signed at Washington, DG, ths 18h dy of 008 torle A ipnicy ‘Assistant Sezetry for Employ Standards ‘Tammy D. MeCurches, Adminitotr, Wage and Hour Division ‘= Focthersasons set forth above, 29 ‘GER pact 641 16 rovised to read a8 follows: PART 541—DEFINING AND DELIMITING THE EXEMPTIONS FOR EXECUTIVE, ADMINISTRATIVE, PROFESSIONAL, COMPUTER AND ‘OUTSIDE SALES EMPLOYEES ‘Subpart A~Gonaral Regulations See, 5410 Inveduerory statement 12 Tama und 2 pulations SHLD ob tar spate 541.3. Scope of the section isla) 541.4 Olver ws and ealective bargaining ‘preeren ‘Subpart S—Executive Employ 545.400 Generel ule for executive ses.0? Rove 541.102 Managoment £41103. Depatinent or subdivision. Selloa ‘Dwoormore other erpiopees, Sei0s Pamiedar weight E8108 Conesrent aati, Suypart OmAdminisrative Employees 543.200 Ganon cle for ede employes. i erly related to management or ‘ener boners pectin. seudoe Discretion and indopendent jedan 53 don Rdsintarave exemption engin 41308" Eeatonal enalishments 191.300, Gener al far profesiol tmployee. san.0) Learned profesional Eatgoz Gronive profesonale Belats Teachers SA1A0E Proce few o7 medieme ‘Subpart Computer Empoyoes 551.400 | Grae] rule for compster employees 01 Computer snanufectuce wo sep 584.402. Exacuive ond sdinsatve ‘Sompvier empinyens Subpart F—Outeide Sales Employees 541.900 Generel rule fr outside ster 24.530 lg sale cr ghlainog or 5th02_ Away hom employers leon of inate 541.303" romain work SeLg08 Drivere wo sel. Subpart G—Salary Requirements 51.600 Amount of clay resuired NeL60Y Hipsly compencuied empoyeer. Sen02 Seley basic 361.609 ‘fee! ol improper deductions fom salary 23.604. inimum guarentee plus tas 1.809, Pe bes 541.606 Boor odging or oer faites Subpart l—Detritions And tsceaneous Prowsions 542700. Primary doy Sais0s Gastar tnd regan %61.703, Exempt and nonensip! werk 551709 Dovey and clay mulated sa1704 Cheat manuaie 54709, Trainees SH06 Emergencies Su 707 Geatena tars. 581708 Contination esrmpions 551,708 Mion pitiye jroducing indus BELA10. Employes of public genes Authority 29.56. 238; Public Law 303~ 4509, 204 Sut 2872, Recpaaination Plan No Gf tsa (8 CPR veasrs8 Comp p. 20 Seuetary's Onl No. 42007160 FR 29650). ‘Subpart A—Genoral Regutations $241.0 nodctory statement (a) Seton Ye) of the Pui Labor Sunder Ack es snnnded provides tn femplion fom he Acts simu Soe ad cvertine equretiens fr any xployee employed in bone Be See Widstaate or roles eapacty (inching ao Exployee employed im the capecity of Scant attiniratie peel trecher in elementary or Sooondary ‘cols or nthe epaciy ofan eside Salen employe, o ih terme are Setnod dol elated bom tine time lpregulatios of te Secretary subject ars provisons ofthe admiistrve Froceduve Act Secon 1007) of the ‘Aa provides an snamption hoa th ‘inlar wage and overtime Fequiremont Jor ompetr sytem Senlgets, computer pogrom {char copes, another sly ile computer enployees, {b) The relrement for those exemptions te conitced nthe pars fiom executive employers, elpan ': odministstiveemplovses,rebpact rolessonal explayeas, spar B Compute empliyeds, span B outside saletenployon subpar Spat Contains oguation roperding ely ‘equitements applicable to moet of the ‘rumpions atuding slay lve nd ‘oaaary bois tox Spar Go Stal povinon or epg tain highly compen employees Schpan # contains definitions ane ater micllaneos provisions splice aller overal of tha tempts. (c fective fly 1.1972, the Fae Labor Standaeds Act war nonce ‘clude within oe proecion of tba tex pey provision those moyess slam oe the snk age an svertine poy provisions as bone fide regu abit Enloyes smplyed inh copy ‘cadre adiiniureivapersonoa or ‘Secer oelmertay or Secondary ‘chlor in the capacity ofan cuaide Salen employes nde secon 13(@() of She Ace The eyuel pay provisions: Eecsion 6@) af he Fal Labor Sendarde ‘Scare administered and enforced by ‘he Ursted States Equal Employment Opportunity Corasion $5412 Tene used in requis. ‘Act maa te Pair Labor Stondards Ai of 10a8, a emendet, ‘Adminitrotor moans the Administra of be Wage ad Hour ‘Division, Cited Stats Deparment of Inbar the Secrary of Lator has Aelogned to the Acninsteta e neti vntd in the Secreta der sections 13[a)(1] and 13{3)(17) of the Fair Labor Siandarde Ac 5412 Job tes insur ‘Ajab site alone ie insuficent to establish the exempt status of an fmplayee. The exempt or aosexempt Salus any paotculey employes mst De cetersiod an the bass of base the employee's eazy and duties moet tie requirements of the regulations i th pet 945.3. ‘Scope of the section 126K) exemptions {g) The section 18401) exemptions and the regalations in se part do not Spply to mancallabovers or ote ble Collar” workers who perfor work lnvolving repetitive cperations with their hans, physica skil and energy Sach nonexempt blue colar” employees gain the sllle and vwledge required for performance of ‘ir rouse manta end paysial work through apguenticeships ant on-the-job testning, na thegh the prolonged (Fridey, April 28, 2004 /Rules and Regulations 22261 Federal Register/Vol. 08, No course of specialized intellectual primary duty jg pot the performance of suggestions end recommendations as to instruction requived fer exempt leamed work roquising nowledge of an the hiring, fring, advancement, profeesions) employeus euch ae medical advanced type ina eld af science or promotion or any other change of satus octors,aebitogs and arceoogies. Tearing customentysequired by 8 Of ther employoos ave given partisan ‘Thus forexemple,nom-menagemest prelonged course of ested swesghe productioosine employees and non-__intelleswalinsracton ar the ib The phrase “salary basie™ is Inenegeiaeat employers in antenance, peforuence of weak requie ng defined at § 7.602; "Dont, lodging or Censtructlou and sail occupations Invention, imagination ariginlity or per facing” i fined a § 541.606 fuich #8 eaxpentors,electicaxt, tales i a secogaized fn of “pitary duty Se dained a § 54-700 Thochenics, plumber, ison workers, cruutive endeavor a required unde and “customarily and reguls)y" is rafismen, operating usinees, $542.30. Although some police dlbined at § 541702 [Engshotwmen, construction workers officers, fie Gere, pazernedcs, aaa ‘end laborers are ontilled to minima smexgency medical echaicians end ‘wage and overtice prommm pay under similer exployoss have colloge degrocs, the Fair Labor Standards Act, and are 9 specialized academic degree ie not « not exempt under the regulations in this standard prerequisite for empicyment in "Tae term “employer exployedin a bbona fide executive capacity” in section 2s(@)(1) of the Act also cludes any eimployee who owns st least « bona fide partno matter how kighsy paid they such oocapations Eight be. 2o-pervent equity intrest inthe {lal he section 19(a)3) exemptions $5414 Other awe and collective ‘niagpsise in which the employee is and the regulations in this part alo do Petgehing areoments, employed, regardless of whether the hat apply to police offices, dolectives, The Pair Labor Standards Act business is a corporste or other ype of Uepu sberids, sete cooper, aghway provides sninimuma standards thet may Sygeniztion, and who te acsvely fatto! officers, investigators, inspectors, be exceeded, but cannot be waived ar engaged in its management. The erm EXwectional officers, parole or probetion 7#duced. Employers must comply, for SStanagement" is defined in § 541 102. otices, park rangers, be fighters, cpacple, wih ny Fadeal Suter rhe regulement of Shar (alary ssamarice, emersency matics rupicipal laws, regulations o> jirements) of this pat de not spply fechnlsienesmbulance pusonnel, ordinances establishing a Migher tt ibe business owner described io te rescue workers, bazardous watericls ‘Minimum wage crower maximum section See cael eciier raptors ‘workweek than those established under wee eaotrunkorpey level who he Act Similei, employers, on tbe §541.02 anagem. vn initistive or under a collective Generally, “management” inches, form work such as preventing, perform work such 4 PEVESRDE. barging agreement with lober” bot snot itd to orig such seen ecting bie Sime cgaccdent, lon, are not precluded by the Act interviewing, selecting, and training af Sletins, preventing or detecting crimes; {Om providing a wage bigher than the | employees; setting and adjusting chair Condtueting invectgetions or inspections atuory minimom, «shorter werkweek rates ol pay and hours of work, directing {or violations of law: performing than the statutory mexicoum, 0 # higher tho work of employees! maintaining ‘overtime premisin double time, for preduetion or sles socords for use im survellanee; pursuing reteining and sppebening supocts Suing acl) ian proved yt AC” Riper canto sprig Teviningtaspeccd tad copuiciea While callecive bargaining agteemeo's employees productiney and etheency Sipeviina rsp a eee es ee ere omarion a finizals, including tows on probation fr parole, interven wines protections, nothing ip the Actarthe promotions or olser changes in Stet = os rozulations in this part relieves Qandling empleyee complaints and snverrogeting and fingorprinting susporis; propariog investigative employers from thei contraccual grievances, cisiplining employees; Teports, af other siailay work, obbgitions under collective bargaining planning the works detarmining the 2} Such empleyeoe da not qualify as Agreements, Techniques tobe used; apportioning the exempt executive employees because HH ‘work amang the employess, {heir primary duty is not management of Subpart 8—Exerutive Employees {be abies in which the amples is 54,300, Generale for execute employed ora Costamarily recognized employees Separtment or subdivision thereof as” {a) The seem “employee emploved in ining the type of materials, supplies, machinery, equipment ex tonie ‘to be used or merchandise to be baught, stocked and sold: controlling the low eqnived unser §941.100. Thus for a hone Ade exective capacity" ib std distribution of materials or ‘example, @ police officer or fire fighter Sectio 13[a}(1) af the Act shall mean _smerchandise and supplies, providing for whore primary duty sto investignte | any employe the safety and security ofthe emp ayes Crimes oF Bgbt Ares isnot samsptunder A) Componseted an a ealaxy basis st ox the propery plansing and section 13(2){2) of the Act merely rote of not less than $485 per week (or controlling the budget: and monitoring because the police officer or fre fighter §200 per week. if employed in ( implomorting logs! compliancs lee direst dno wotk of other axployses Amoricen Samoa by employers other rani. in the conduct ofan mvestigaton or than the Federal Government, exclusive eg fee Gloom, lodging or ther feciites, $8400 Deparment or subdivision 3) Sich employees do no: qualify as“ (2} Whose puna duty t+ ie) The phrese“a customarily exempt acministrasve employees mumgement ofthe enterprise in which retognizet department ax subdivision” ecause their primary doy ietet the ‘the employee is amployed or ofa fs intended to distinguish berwees = Devformance af work direeily related to customary recognized depertzent or mete collection of employeos asigued ie management or general [usiness subdivision theresk Eom time to tins toa specitic job ot bperations of the unployer cr the {G) Who customarily and egalesly sot of jobs and e unit wita perasnent employor's customnuis xe required under dicects the wark oftwo ormore other status and function, A customarily Aas = Fecogeized department ar bevision 5541-200. employees: aad (a) Such employees de not qualify a2 “"(8) Wao hes the authority tohire or rourthave a permanent satus and exempt professionsls because thelr fire other emplovess o> whose continuing function. For example, & 22262 Federal Register/Vol law employer's man rwoaroes debecton might have subtusions fr {nor salto, pensions end ater Soncdt, que! employe opportunity snd personal Shonagemett, sac of whieh bos 8 JPomisent sais a function {Hy Whoa an enterprise ore then oar esa sheaths emplayes Shasge of ene estasismemt ry be Considered in change of wengnizod abuivison of teen epive {cj recogni dopant or subivieto eed ot be pysealy Stithin the employers esa ishmeat {he may move fom placa place. The Shore fat tht the employee works ip Show than ene levetion done not Ivalice te exemption i othr feos Show tha the employee i seta 50 hinge ofa yecogaed wt with Chntinaing function in ie ongnization {i} Gantiulty of be some subottinate panne ot esenil to Ie enistenee of cweopaize nit th 1 tontinuing finclon” a otberive Snomptemplaye wil act love the Shomption marly because the employee {Bie and cuperiss workers born « pool or supersen a tears of workers pon fam cbs rcognisnd ots, Shor actors are peso hat nate Shar ine enployen sein cogs of 0 Tenogaised init wih consessing fanction 4541304 Two oF mor other employees {al To qualify ae an exert exeeutve under § 943.100, tbe employes rust Customary and regularly dette ork of fo or more other ployees ‘The phrase voor mor hr froployers” means to Rte raplajees or their equivalent: One fal {iu and two halesite employees, for xannple, are equivalent te te full-time emplayess. Four alfsime employees ealgb equivalent {b) The supervision can be disibuted amiong two, fires or nore exployees, it each suc employee must Customary and egealycivect the srotk of two ar mare other full-time mployees or the equivalent. Thus, for fharple¢ departmont with vo fll {ine Eonwxempt worker ey have 3p ieee prom sper fea uch Ripervigor cistomarly end regularly Gifeas the work of wo ofthese ‘workers (c) At employee who merely assists abe manager of particular apartment nd supervises to or more employees Only in te actual maage's absence eg not meet this requament {ah Hous wutted by an employee cannot bs credited moe thas oace for dliforen executives Thus, a sbered fesponetbity fr the supervision of he 69, No. 79/Friday, April 23, 2004 /Rules and Regulations same two employees in the same {epartment doce not satisfy this requirement However,» full-time templayoe who works four hours for one fupervisar and four hours fora different supervisor, for example, cen be credited 8 half timo employee for both supervisors, §511305 Parcuar weight "To determine whether an employee's suggestions and recommendations are {hun “oaticular weight’ acts to be considered include, but ae not limited tO, whether itis part of the employee's job Gutiee to make such suggetons and Tecomimendatons; tae Fequeney with ‘which such suggestion and Tecomumendatons are mad or requested! and the frequency with ‘hich the employee's suggestions and Tecommendatfons are reied upon Generally, en executive's suggestions find recerumendations must prtaln fo ‘ruployees wom the executive fastorarly and roguany sects 1 does not iochude wn oecesicnal ‘nggaston with regard o he change Sn Sulis ofa @orker- An erployeo's Suegestions and cecommendtlons may Still be deemed to heve “parscalr sveight” even Fa ighesfevel monoge'e Teesinendation hag more iapertance dnd even tke employee doesnot have Suthorty to make de ultimate Beeson se the employee's change in satus $961.08. Coneuran ues. (a) Goncwrent performance of and nonexempt work does n0t isguslify an employes om She ‘xetutive exemption ithe reghnements G1 54) 100 are otherwise ret Whether nye eeu 41-100 when the enplopse performs Eoneurent duties is determined oa ® Gaso-by cae tase tad based on the {sete oot orth in §543.700. Generally caemptexeeutivee tke the decision Fegarding when to perform nonsxempt Ses and remain fespoasie for tbo fcgese o falar of business operations der ther mansgement while tanning tn owen wae GGotaat, te nonexempl employee eneraly is drecod by» supervises to Besfom th exempt wock or pervomne {he exempt work fr defined time periods An employen whos priaary fay is order) production work or Fonte. recut or epattive tasks annot qualify fox exemption esa crective {i} For example, an assstom manager in etal establishment may perform ‘work uch as tering customers, Cocking food, stoekdeg shelves and leaning the etabigmant, bu perforce of euch nonexerapl work xempt does not preclude the exeraption ifthe stant manager's poimary duty is anaperent. Anais monees can supervise emplayees and serve customers atthe same Le witout losing the exemption. An exempt cmplayoe can algo eimultanoously rect the work of thar employses and stack shelves. (e)in contrast, « relief supervisor or working supervisor whose primary duty Ss performing nonexempt Work on the production line ina manufacturing lant does not become exempt merely cause the nonexempt aroduction line ‘employee occasionally hac some responsibilty for dizosting tho work of ther nonexempt production Line fomployaes when. for example, the exempt supervisor is unavailable. Similerly,en employee whose primary ‘uty is to work as an electrician is not fin exempt executive even i the femployee also directs the work af other femplayees on the jl ste, orders parts ‘and materials for sh jab, and handles ogusste from the prime conte! or Subpert C—Administrative Employees §§541.200, General rule for acmiisrtive mpoyees. {s} The sem ‘employee employed lo stbons fie administrative capacity” in section 13(0)a) of toe Act shall mean ‘ay esapioyee: 1h) Compensated on a salary or foe basis at rate of nat leas than S455 per ‘weak {or $300 per week, if eroployed in “American Same by employers ether than the Federal Government), exclusive ‘of board, lodging or other facilites; (2) Whose primary duty i the performance of efice or nor-manual ‘ork directy related to the management ‘or general business operations of tha fniployer othe employers teers: (2) Whose primary duty includes the exercise of dicretich ud independent jndgment with respect to mitars of Eignieance (Tae term "salary basis” is defined at § 54.603; “ao baie is dufized a 541.605; “hoard, lodging or other {ocibities is dafinod at § 941.006; and primary duty” is defined at § 541.700. 561201 iret eae to masgement SF neta ousets operons {a To gual for he ainsi exemption am employee's primary dy Sst be the performance of work Shorted to the mmanogerens oF feo sings oprone oe SGployeo the ompleyers customers, ‘The plas “cvetiy relate oe rhuntgement ar gonerl busines portion ele tote type of work Federal Register/Vol. 69, No. 79/ Friday, April 104) Rules and Regulations 22263 performed by the employee. To meet {his eaquirenent, en employee mast Peston work dry eit athe busiots, ae Sstngcihed, or cxample, fem working os 8 ‘Banulacturing production line or foling product in vot or service Setabashment (8) Wert avec elated ta sanagemont or general business operations incfudes, bt is not iited {Euowork in fanetional steas much as tex Finance: eecaunting: Dadewing suing asuenen ally Sta yurchasing: provureiieat advert [Darkating reserey safety ond Dea personnel manepemunt. bao Fegnuseer; employee beset labor ‘elstions public alton, goveramont reltions; computer newark, isienet snd tase ancl ond regulatory compliance and smal stn Sr ofthese scree ay be parormned by employees who also ‘Wotld qualify or anoshor exemption (6) Ad employee may qualify for he sadminisvative exemption sche employee's primary duty isthe perfomance of work directly related to {he managomerst or genoral buciness gpertons of te employors customer ns, for example, eimployecs acting es aivisers or coarulant to thelr trnployar’s clients or customers as tx feports cr nancial consultants, fox sxarple) may be exempt 691.202 Dissretion and Independent homer. (Te qu fre ati cxamption, an emloyes' prumary duty ‘ust include the exer of section nd independent judgment with respect, fomnaters of sigoiicance In general the fee of rig en independent Rrdginent involves the caeyperion a Seats of Posie cer decision after the various possbiives have bean considered. The xm *aatos of eigaificance” refers tothe level of importance ar consoguance of the watk performed. {by The purse “elecreion and inependent judement" me applied inthe light of all the face involved ix the particular employment station So which the questign aren Fators to Consider when determining whether an deuploye exercises discretin and [ndagensers deren wchrespect to ratios of significance indude, but are pot Uated to: whether she employee ins authority to formulste affect, inverpret, ot implement manogerient poles or operting precicen wheter Hirenployes cares 8 aor besiguments in conducting the persion ote bse whee te bhuinets operations to a substantial ages, ven he emplayens tsfiguinents are raat tO operation of 2 patculer sequent ofthe boainess “beter tho empoves as authanty to Commi tbe elope in mates tet Sve static nancial pact “rbot tat emplyes ne thot to ‘aheo: devaidkan esallshet poy wa eed west 2ebhanty to nogolate ana hind the company op sguifosot mater Wheaie be aaployae provider Sinnulson or paprt soviet Shgoratjeirber be enploess fnvelted Sy panning long or shear Rosine ctv er tbe nplope estes an eplyes ‘ater of agficance on bball Calagement and whether te ployee fapretntsecnpany in banaligg splicing csputes ce (0 te era ron nd employee bas sutbority to wake sa Sndbpeadent choles te es Jmnbdate decou or supervision However, omployort con orecise Giscroon ant sndapendent judgment rene dees or ‘Stoutsesdations ee reviewed ate Nira, hth tr anreon toe ndependent judgeent™ dows not Fegure that ibe ddcont made by ox ployee Have» Boalt that gone wih Slnctedattbouty and a cougpite ‘Boece of view he decsche nade dea rosult of he exrcoe of dlscretion td indupandent agesoat nay anal Sf recombaendstion for sch rather ‘han the acta taking of acon, The fat thst an empoyoe's decston ay be subjectio view and that upon ‘Stubion the doltons ar voce cr ‘evorsd ate sein does ot tan ha disemployer inet exerci tlscrton ae independent eden Foveample the pos faulted by elt nacager of lage corporis tray be subject fo review by higher Coxtpany ols wo sy aperove or Sitapprove there poliiee.The Satlfouol culate ae mae 2 say ofthe operons of basinse dud who bas drawn o proposed change Erorgunltion muy ave toplan Jeviewod ar aevise by supen re before Missubmited tothe Chant {idan employors volume of basiness smay make lt azeary to employ 8 unbor of eaployea o parton he Sosa ect Gr work of te sane relative importance Siac not mean al tbe work ofeach such employee does sot involve te txerree of Cisietion and independent Fudge wih erect to mateo "eT exercise of discration end independent ucgaient aru be ore than thee ef ell in applying vel established tedsiqnes, procedanes ot specie standards deste in mantale Crete sutens Se ao § 5.704 regarding ure of manuals, The exercise af diacrotion mt independent judgment also doesnot include Cletical Secretarial work recording a fabulting dat, pexfooaing othe echnical. repetitive, recurent or routine wore A tciployee wo siply tabulstas dts is hot exarapt even I labeled ara {D At employes doce not exercise Aincretion tad independent jodemoent ‘with reaped te matters of significance merely cause te employer wil toperience financial loss if he ploy fais to perform he job propey, Par exile, « messanger who ES entrated with carrying large ums of ‘money does not exercise discedon and ledsen dejo wih ape Divers of ghitesnee oven Soe Fetious consequences may Gow fom the snployrs ogc Silent, an srzployee we operates very expensive aipiet does not exercise Gareton Sti Independent judgment with respect innate ofsigeliotece merely ‘bocause improper peiormance of he feaployee's dues may cause sorious nancial los o the ecxployer 517.203. Aemininative exemption Eames. (a) fanirance claime adfurtore generally meot the éutes requirements {or the atminisrative exemption. svheter they work for no insure Company or other type of company, if thoi Gutes clude eesvities suck as Inerviewing insureds, witnarses and lysine inspecting property mage eviewing facil iniotnation fe pupae damage ortinates,evaustig cad ‘ling mcommendasone regarding overage of sais: determining lstlty fod tal value of las nogototi srtlementsy and making recommendations regarding hiigation {fe} Employes in the aes services industry generelly meet the ‘fates equirements forthe fadminisvative exeroption f thei Suter Jnclude vrork such a cellocting and analyelog infomation regerdiog the ‘or debts; determining which financial products best meet tie customer's nods nd fines! cneumstences: aaesing the customer regarding the edvantapes snd disndvantages of different fiencial 22264 Federal Register/Vol. 69, No. 79/ Frid April 23, 2004 /Rules and Regulations products: and manketin, servicing or promating tho employers nancial, products, However, an eroployee whose Pita duty is seling Gnncal roduc dots not qualify forthe cininitstive exemption {@) An employes tho Iseds steam of other amples assigned to complete ior projects forthe employer (uch as pulang, selling or cloning lo: part ithe hoses, nagotisting 4 ral estate transaction ors calleetive bangatning teromon, or dase iitplemeniing praductivsy smprovornoutl generally sees the dite ragusroreats fr tho fdiminiswative exemption. sven ifthe ‘onplayee doce not have dives fupervisory responsibly aver the other Employees on tae tear. TB) An oxecutio anitant or administretive assistant to a business Sven or sents exceutve of large ‘mnsiness generally mets the dstes requsremests forthe ndminssiratve ‘Bempiton such employee, without Specific instzuctions or preserbod Procedures, has buon delegated Zuthovty regarding matars of Senificance fe Human resources managers who formulate, iterpret oF plement employment policies and menagoment Consultants who study tbe operations of business and propose changes io Organization generally meet te duties oguiroments forthe ada nistaive ‘pompton However, personnal decks ‘wha “screen” applicants to obtain dato Josarding their minsmum quelications tn fits for employment genecally do ht meet the dates requirements forthe sSministstive exempson. Sch Spruce clcks typtcaly wil ect all anpliconts who do nat met micimure ‘andacds forthe particles job or for ‘employment by the company. The ‘nin sadder ava et by fhe exempt husnan resouces mange oF tue corapany officiel, ane the decision te hire fom the grows of fualiod applicants who do moet the Jhipimun sendarde le sidlanty mde by the swamp! humen resourece smanager or ole oorapany officials. ‘Thos wher the interviewing and screening fanstions are perfoned by the human resources snag or sonnel manager wo makes the Eiting decision or makes recommen datfons fo hieing from the ool of gualifid applicants, exch duties Ennattue exempt werk, eves though ‘ostino, because this wank Is aocly tnd claslyroloted tothe exployse's Stemptunchons, if Purchasing agents with exthonty to bind the company op sigaiicant pparchases genrally mt De dies _epirern for i mien xumplion even fay st conault ‘top management ots when Ihakinga puree commitment foro Inatrialsn excess ofthe comtemploted plant needs, ie) Ordinary inspection work generally doesnot meet the dies Fein forthe adc, fmemplion Inepectere norsally perfor Spelalized watk long standardized ibe involving wel tablished techniques and procedures which ma Ihave been eatlogued and deserbed it ‘anus of other sources, Such [specter ey om locinigues and skills scared by special wal or feeriance They have some leeway in {he performance of that work bt only ‘chin closely presi limits. {e) Employees uncaly called panne adr sit onployene inde umber, generally donc eet the duties rogaiements for dhe asinine oer femployeesesully perform wor involving the coxaparison of products ‘with established slndards which ene eyuently catnlogued. Often, afer ied eee on wien, fonploye segues sulin! iaewlodge fe bat reteroe to written standards ttnnecotsary The substation of the tmplayee's memory for s manual of SNundatds doesnot convert the character ofthe work pacormed 1 exert rk Tequring the exereise of divertion 800 independent judgment {1 Comparison shopping performed ty an ployee of retail sare wo snerely neports to the buyer the pris at ‘competitor's store doesnot quality for theadzinitzetive exemption. However the buyer who evaluetes ch reports on Compares the tye rious generally meets the duties Feuruinont forthe adsainietivn Bate sector inspectors or ins fue pen ch a conairctinn, healt a enitalloty seen or specialist nd noo he dase regain for he ‘ministrative exomption bocauee hair ‘work tay does not invalve wonk ety ele The menegrient = eral business operation ef the Enplayer Such ecplayecs also do nat qual forte adinistative exemption Eccause ther work tnvalver the use of $hlls and techie ables in gating factual information applying kaown fnndards or preseribud procedures determining wich procedure ta follow or determining whither prescribed SSandards o teria are met. 541.20¢.Eduetlonal extaehments {o} The tem "employee ermployed in a bona fide adannitative capacity” In section 15(a}(3) of the Act also includes employees: (2) Compenssted fr services on & salary or fee basis at erate ot not ess ‘han $455 per wed or $880 pet woek ifempioyed im American Semon by feaployers eer tan the Federal Government) exclusive of board, lodging rhe facies, or on a salary bese ‘heh feat least alte de entance lary fer teachers in the educational rtblishment by which employed and {2} Whose primary duty is performing acininytraive tuncions diely related to academic instruction o ining in a3 tetveational establishment or department or subivsion there. 5 The tern “educational estallabment” means an elementary or Secondary school system, an aston ot bigher eevention or then educational fastsion: Soetions 31) and 30) othe At define slementary and secondary Schools at those day a residentl Schools shat prov elementary oF Secondary education, ar aetermined Inder Sate lw Under the Inve of most Stork econ ade he currcuhuns in grades 1 tinoug 12; de many ita te Iroductory programe in Kindergarten Such education in some States may also Include mueery steal programe elementary education ae junior college turieulups 50 secondary edueation ‘The term “other educational, tslablishment' includes special choos for mentally or plisically asabled filed children regardless of ny Seaton of ee Slementary, secondary or high, Factors felevent tv determining whether post econdary career programe ar ‘ucationa inettutions include ‘tere aia ese agency responsible forthe sat's shoe te reed by 2 nationally recognized accrediting crgaienn for een hci Ase, Hisdnction is drawn between pale and private ects, or between thore Epersted for profit nd those that are not for pot {el The phrase ‘performing administetive functions cicectly related {o academic instruction or ting” ‘eas work related to thu acadere bperations nd functions in echoed ‘hhh than to administration along the Tings of general business operations Such scagemic adminitatve funtions include operations direc Ip he field fed uation. labs relating ta areas Guts the educational Held are not Federal Register/Vol. 69, No. 79/Friday, April 2: .004/ Rules and Regulations 22265 ‘within the definition of academic fsdminietation (1) Employees engaged in academic sdminietrative fanetions include: the Supetintendent or other head of an elementary or sceandary scool system, ‘and any sésistants, responsible fot administation of each mattore as curriculum, quality end methods of {nstructing, Measuring and testing the [earning potential and achievement of studente, establishing and manntaining acadarniec and grading standards, and ‘ther uspects of the teaching program; the principal and any vice-principals responsible forthe operation of en tletnentary or secondary school; department heads n institutions of higher eduestion responsible for the Administration of the mathematics spare the Hoglish depart tbe foreign language department, et \demie counselors who perform wack ‘uch ae admainisteriog schdol testing programs, asisting students with Scademic probleme and edvising students concerning dogroc requirements; and other employeoe with Similar responsibilities. {@) Jabs relating to building management end maintenance, jobs telating to the health ofthe students, and academic stalf such as social ‘workers, psychologists, lunch: room anegess oF dletitans do not perform academic administrative functions Aubough such work ie not considared tcademic administration such sexployert may qualify fr exemption ‘under € 841.200 or under other sections of this pax, provided the requirements for such exemptions wre mst. Subpart O—Protessional Employees 4581.30 Genero rule for profesional emplavees. [a) The term “employse employed in ‘bens fde professional capaeaty" in section 13a) of the Act shall mean any employee: (1) Campensated on a salary at foe brie at arate of pot less than $455 per ‘week [or $380 par week, if employed im ‘American Sema by employare other ‘than the Federal Gaversment), exclusive ‘of board, lodging, ox other fecitor; and (Whose primary duty ie the performance of work: [5] Requising knowledge of an advanced type in a field of science or earning customarily acquired by & prolonged course of specielized Intellectual instruction; ot {i} Requiring invention, Smagination, originality of aloo in aecognszod Bld (of artistic or creative endsavar. () The tors "salary besie” i defined st § 541.802; “foo basic” is dofined at § 541.805: “board, Jodging or other fcilities” is defined at §541.608; and “primary duty" is defined at §54.700, $561.08 Leamed professionel. (e) To quality for the lesrned proltslonal exemption, ab employee's primary dary must be the pecermarce Df work roguving advanced knowledge Int field of reine o learning ccurtomanly acquired by « profonged Coe of specialized intelfersa Sntraction: This primary daty test includes tree elements {G) The employer mst profi work rutin advanced knowledge (he advanced knowhedge must be in a Bld of cence or learning and 6) Pn adeannd invest st be ccasiemarily equine by » prokonge Course of specialized itlloctaal” {the pase “work eguiring advanced knowledge" means wank ‘whic is predominestyitallectual in ‘Character, and which idcludes work Tequiing the consictent exercise of ‘Surroton and fdgmont as Eeuaguished fom poformance of spine ig anal mechan or physical work, An employer who pevforme work requiring advanced Enowledge ouerlly ures the vanced Janowledge fo analyze, interpret or bake Alecntions fore verving facts on cireumstancer, Advanced knowledge fant be attained a the ga #00) fovel (G The phrase “fisld of ecionce ot loaming’ inciudes te e6sbone! osslons of aw. modiesne, “aeclOgY, ccounting, actuarial computation, ‘aginouring, sehtocture, teaching atious types of paysiel, chemical and ‘Nelogial seinen. pharmwey 2d other ‘mar cocupations that have 3 recognized profesional slat as isungusboc ftom the mochanial are tr akiled nades where i some {instances the Knowledge i of Saiely fsdvancod type, but ss aot 6 eld of (S} he plete Huston aoquzed by a prolonged couse of specializes [Dtellectal isieacion estes he ‘Seenpeton to professions whore Specialized academic training is 4 andatd preramainte for entice nto fhe profetion, The bert prim late fvidence dst an employee ments tis equuroment is possession of he appropriate osteme dogres. However, ‘he word “ewtomen'y" sueans thet tbe ‘exemption is also evalable ta empleyecs mn such professions who ittve substantially he same Knowledge loved and perfor scbetentally the sane ‘work et le degroed emplcrees, but who ined the advanced inowiedge ‘gh «cumbination af work tsperience ond jtellecia insiuction, $e fr oauaple, helmed prfeisionalexsaption is evade Ree cocaiona nvrer obo bas not gone tela acho, o the otcaiomel herist ‘he isnot th posoesse of Gegrer in Shemisty. Bowers the lear ston eaten nt rae for ocenpations tat eustoariiyasy Se erformed with ens the general Eoowiedge seguro Spa agro ssn Bel, with spiel img an epson or tts rising in Oe pestosmance tne sete, mental mechanical ar physica processes. The lemme roessonel exemption alga does nat Eiply to ocrupatons in which ot Chipleyees babe aoguived tet ll by trpestnce rather ie by adeenced ‘CucalicedSntlfectealinsruchon. {lth Regtered or ceri fied medica technologie Sogisored of ened, smedicl technologists who ave ‘cceafuly completed ture sexdemic Sour al proprotein study is Acree college ot aniversiy plus & fSurth you of protnsonal course work {na schod stinedicaltechssloey approved bythe Counc of Met ca E2caton ef the Ameniean Nestea Association geneelly mest the dios cases or the nares "aferional exemption mS Rursos Ropstered masses who we regutered by the apprepmate State Pinning boord gently moet ae Sites resnirerens fo he Iearaed foesciche exemption, Licensed [race sures ad other sir alt Ex employers, however generally do Sot quelfy ty exeny eared Drotesonale ecruce postrsion of pnculced advanoed acadoaue dues iPnote stmised preoquise fr eatry tnig rach oocapations {5 Dena ysrens, Donte Iygiennte wb ave sucsselly Completod ots acatomse yous of pr profesional sr professionel Ma io ENGoaedited calege or un vorsty SEpreved ay se Commission ot ‘ezrechtation ot Dental and Destal ‘niny Etucatonn) Programs ofthe ‘Sheseks Destal Asroislon generally ‘Rost te dies regasemete for te {carpe proteasional exemption 12) Paymickon assistants Pysiion stants wis bave scene Suploted four academic your of pre srotisona) end profession ato, echding gredoston dro «piyeclan assent program seceauted by the ‘eceditadoe Review Commision 62 Egsention for the Phyhen Aesstant tei who are conied fy the Nanenn Eemmisrco on Ceriicton of Physician Avsitants generally moet the 22266 Federal Register/Vol 09, No. 79/Friday, April 23, 2008 /Rales and Regulations Sitios requiernens forthe learned professional exemption {Accountants Cetiied public accountants generally meee dics Tonements for he feared frlowsoral exemption in edditon, thane ttbereccountants whe ae ook Sorted public accouatents but poclom Stila Job duties may gealify as amt {cared profeenionals Hownver, Scemuntig cles, booker ana Stor employers who mommy perform Sigua dan of routine work generlly ‘ellnotquely ax exempt professionel {G) Chefs Chef, euch es executive http and sous ches, who howe steed ‘our year specialized seadomate degree Je calinay arts program, general thee the dies roqsitemests fore ‘Shred professional exemption. The |Shined professions! exemtion is not valle to eooks sho perform recom rote rent, me ‘Gechical of pysial work ‘hy Paraiogae Pacsloses and egal tun gacoraly dono quay se tempt ledmed professionel bacnice advanced specialized academic Sage ie ota standarspremguisite for Snip int te le Athowgh ony Elegy posse genera! seat SSoanend deprors ost spect Darley programs are twosyear Socine Geeeo progres oom & ‘Stamanityeolepe or evant {Doation However the lsrmee jraiessional pxemprion i svalebe for Fralopns wie possess edvencod Spocinead dogoos ts oor professional else and apply advanced iow edge fn le ne periormanee of ee dies Fr wcampl, i firm hives Shengner ees paralegal o provide ‘iport adic on pode Libs enses ioaseiet on paons mater, hat [Shgincar would quality fr semption Chr chlo trainers Athlelewainere who fave sucensflly competed foe scadere years of pre-professional end ‘Rois adyln speciale Ritrioulu acceded by the Conunisson om Accordion of Aled Stal Eaucation Programs and who we Eemtfied by the Boar of Caticatin of Eo National Athiese Tsieee ioditn Board of Crfton anonally meet te dios epsioments {orn learned professional exomztion (0) Funeral ciclo: orembalmere Litensed fer! ewer and tubers we are eeneed by and rocking in aston regres Roczeneful completion of au Stas of poe pofesions eo Drofeercel stad, inching graduation Roma colinge of mortars scence fcootited bythe American Board of Fino! entice avestion: generals reademnie Ss ers Seen eid Seaet aes tiecteia Seale eect selec: ia Wine See alone Sere sh eid Ce) and era OO 18, rele ae cogent Sneneu una ees oevenonsmet inde 544202. Creative proteesionals, (@) Toqualify forthe erative professtocal exemption, an employee's Psimary day zs be the performance Si owork lang invention, Smmacination, eripisality o alent in reppin fi faite enti tndeavor ae apposed fe routine moatal, ‘novel, mechanical on physeal work Tho exemption does ot apply to wark wwe cant be produced by a person Ueith general sane or intellects) sbi ane ‘ey reg sption 98 @ creative jyotessonal, the work porlocmed mst bo "ia socegtzed Tre of etstie or creative ondeaver”™ ‘This includes each feds as musi, vweting acting and the arephte ars. ic) The requirement invention, iranmatien,cxgunality o talent dist ngaieie the esative professions from work tha primarily depends om Inteligence. diligence and accuracy The dies of employe vay widely dn exemption a 8 erative profess diponds om the extent of the invention Itoagination,criginelity or talent taercised by dhe employee Dotesmination of exempt erative professions) statue, thefofore, must be fhade an a caso by-cave base. This ‘equiemens general is met by econ Thusicans, composers, conductors, and Soloist: pointer who a mast ar given the eusjpet matter of thes panting artoorist rho ane merely fold te tle Srunderying conenpt of sento0n end nut ealy on Dir own eratve ability tDexprate the concept. essayist tovelstsshesttory waiter end screen play enone who enone their OwD jess ne sn ina aued piece of vwark to their employers (the majocity of rich persons are, of course, not employees but selemploved); and persons holding the more responsible ‘writing positions bn advertisibg agencies, This reguizement generally fs not met by a parson who is employed aba copyist. as an “animator” of motion- Bigar ten ore aoc of olographe, since such work is not Droperly descrived as creative in chaeacien {a} Journalists may satiegy the duties reyptements forthe creative professional exemption i their primary {loty is work requiring invention, imagination, originality o- talent, as opposed lo wort wich depends piimavily on intelligence, diligence and {ccuracy, Employees of newspapers. Imagerines, television and ober media aro n0l exempt creative professionals iF ‘hoy only caller, orgonlae and yecord information that is costing or eleeady public, or if they do not contribute @ tunigué intorproation a: analysis to a news product Thus, for example, ewpaporepares who marly roe press releases or who write stan {eoounts of public infcrmation by gathering fects on routine community vents are not exrmpt creative professionals. Reporters alsa do not alify a exempt creative professionals {Ftheie work product is sect ta substantial conteel by te employer However, joenalist mey qualify 05 exempt crative professionals if their primary duty ie posforming on the air in Fedio, elovision ar other electronic media: conducting investigative Interviews, Roslyzing or iterpreting public events: writing ediarias, pinion calumaas cr other commentary br acting as a narsetar or comment@t0r $581.908 Teachers, (a) The tm “employee oxployed ia «bone fide profeestona eapacity" Section 23088) of the Ac also means fny employee with «primary dity of feoching tenng,insrucng oF lecturing in the activity of ieparing [Ghowledge and wino is employed end tngeged i this activity am wacher spunlstna ete by wich fe employes is eruployed. The rm ‘oducatial estallekanent” ie defined sng 5a. 20a0) (by Bxompe techers include, but are ‘not hnaited te: Regular academic ‘each. teacher of kinderperen or rhutsry achool pupil; feschors of eid Gr disnbled ebildren teachers of alled fd sem-hiled trades and cupations; teachers engaged in Sutunnebile diving insouction aizeret fight instructors; home economics teaches; and voes! or instrumental Federal Register/Vol. snusic instructors, Those faculty tbambers who are egeged ns eochors ‘putaleo speada considerable amount of {hat tine i eracurrieuar actvstes buch as coaching atletc teams or feting os modersors or advisors in such freee as dram, spooch, debate or journalis are eogeged in ‘oaching Bich activities ane «recognized par of the schools responsibilty in ‘ontzibuting to tbe educational development of tie student. {c) The possession of en elementary or secondary teachers catifieate provides 2 clear tans of fSentiying the {dividuals comterplated as being within the scope of the wxomption for {caching profesionals, Teachers whe Possess ieaching ceriicate quali for Ene exemption regartess of the terminology te permanexs. Coudibandl, stendare, provisions, temparary, emergency, or unlimited) tsed by tbe State fo refer to ciflzent nds of eeifeates, However, private Schocls and pubic schools are not tilom in requiring a coriicste for Erployment sn omentary or Secundary school teocher, end @ Jetchece nat no eae beoessaey fs employment m Inetiudons of higher education or other educational erabiskinents Therefore, « teacher who ls oot cetfed may be Considered for exeniption, provided that such indivdoal is employed as teecher bythe employing school or School system ia Tae rogicements of $42,300 and Ssbpert &falary requirements of his partido wo! apply tote Teoching frotesionals described in this tection 541.304. Pracioe ot aw of medicine (a) The tae “amployee employed ia tana fie professional capacity” Section 161) ofthe Act also sual {G} Any employee whois the holder fs vad neo carifcate Dermiting the practie of aw or oodiciue or eny of thoi rancher and |S cturly engaged in the practice here and {@) Any employee who tothe holder offs gait academe degree for the general practice f medicine and ie Engaged isan intership or vesident pen psa ot rate oh Pi esas edie the exemption applies ta physiclans and saber practioner: lensed nd Drechicing in he Beld of medical Eience tbe healing oc any of Se esi! spellea prcticd by ipoicane or peacionere. Th tems Spbysicnens" ancludes medica] doctors ‘oluding gneral practioner and 89, No. 791 Fri specialists, osteopathic pysiclans (Goctors of osteopathy), padiatrsts, dent octet of cel mecino, tnd oplossetists (Goctors of optometry or bagbelavs of science in optemetey) (Gl Employees engaged in internship cor resident programs, whetber or not eenaed to practice prior to commencement ofthe program, qualify fs exempt professional they enter such intereship or resident progreras ttler the earning of the appropriate flegree required forthe general practice of their profession. (d) Tae requirements of § 542.300 and subpart G (Slary requirement) of this fart do not apply tothe employees Uesaribod sn thie section, Subpart E—Computer Employses 541.409. Genera ue for computer Eptoyees {a} Computer evstoms analyst, computer programmers, sofware ngineers or ter swularly shed Srotkersm the compton fe are bligible far exemption ae professionals Sender sction 13) ofthe At ane Lunde section 126)7) ofthe Ack Because ob ides vary widely nnd Cchonge quieily io the crmputer Industry, job titles are not dterminative of che epplicablsty ofthis exemption (0) tbe section 136):) exemption applies to any computer employee Bispensated ma saley or fe basis at ate of nat less than $488 per weak (ar $5300 per wos 3 employed ‘Amotican Santon hy exoployers ther ian the Federal Goverument), exclusive ff board, lodging or vtherfacaities, and {he section 12(a(27} exemption applies to any compater omployer compensated {hao hourly base at «ro not lest thao S2).62 an nour, ip aditan, wer tithor section 12(0)4) or secon 1)a)07) af the Aes, the exertions apply only to computer employees ‘hoe primary duty expats of {2} The epplication of systems suelysls techniques and prococics, Including consulting with users, Geteemine berdwace, stare of system Fonction’ specications; {2) The denen, development, documentation, analysis, creation, tevting or modsdention of compater ‘jatema or programe, toes sop bad 53 estat wr Erystem davign specications (3 The design, docmencation, testing, cretion ar modification of Computer programs elated to machine Sperating Systems © (4) A combination ofthe aforementioned dutie, the penfonance Hf which rqulres tae same lev of dalle April 23, 2004/Rules and Regulations Et (c) The term "salary base" is defined at § 541.612; “fee basis" is dofined at 541.605; “board, lodging or other facilities is defined ot § 541.506; and mary duty" is defined at £542,700. SEat4ot conpter mandate and “Tho eximption fr employees fe compute oscupations door nt inchade trloyen rgend ihe anhese Shinpair of cos puterhandwaen axe seine goat Expl whose front i highly dependent spon or Feared by, tie wae of comptes and fortes sofarre programe e.g Snpinoers, crftrs and taers ded in Somputerasded design sofware), bat Shoe not primey engages se Simputor spseme alysis aod srogeunmitg or ater ilar skied [Stipulated cesuperons eenssee ing bet a00() ze sso ot exampe computer professionals. 541.402 Execute and administrative Eompter employees. Coinputar employees within the scope ofthis exemption, gs wel as those employees not within its seope, may also have executive and adiminiswative Guties whic quality the employees for ‘exemption under subpart B or subpart C of thus per. For example, systems analysis and computer programmers generally meet the duties requirements {or the administrative exemption f their primary duty ineluces werk such at planning, scheduling, and coardizating lctivities mguited to develop systems to falve complex business, scientific or fngineoring problems of the emplayer ar the employer's customers. Similarly, @ senior or lee computer programmer ‘who manages the wark of two or more other programmers im a customarly ecogaized department or subdivision of ‘the employer and whose recommendations ns tothe hiring. Bing, advancement, promotion or other change of etstus of the ater Drograramens are piven particule ‘weight, generally mects tbe duties requirements far the executive ‘exemption. ‘Subpart FOutside Sales Employees 541.500 Ganeral eae tor outside sales ‘employees, (@) The term “employee employed in ‘the capacity of oatside salesman” in section 22(a)(2) of the Act shall mean any oraploye: (a) Whose primary dy i: (Gj making sales within the meaning of sectign afk) ef the Act, or btaining ardere or contracts for services ar for the use of facilites for 22268 Federal Register/Vol ‘which a consideration wil be paid by {he elent or customer ax {2} Who is customarily and regularly engaged away for the employes place tr place of busines In perarning such poimary du. (b) The term pimary duty"is defined et § 541 900 In detomining the frimary duty of an outside alos Employee, wotk performed incidental to Si in eaanetion withthe employee's um Outside ses or elicions, Inculng sida dein t Cellos, call be parce es exept ‘outside sales work, Other work that : fisthos the employee salar efforts also shall be regarded ax exempt work Inching for example, wing sles repons, plting or revising tho Mhotoyects soles or dieplayexnlngve Planning itneraries and attending sales Eonfereces {e) The regurements of subpart {onlay roqutements) ef tis pst do not Spply to he outside sales employace departed is tus section 541501 Moking sale or omtling rors {e) Section 541.0 requires that tbe ceployes be engeped in {U) Raking sfst within the meaning ofawcga 3 of he A {2} Obtaining orders of exntrets for seevices cron the use of facies ib) Seles within the meening of section 3k) af the Act include the Banal ef ie to tangible property, and in cera cats, of tangible and valuable evidences of intangible propor. Section S(t of she Act tote tet “sale ar'sel? includes any sae, exchange, entrct to sell, consignment forsale, SEipmen for sle, or ether disposition. {0 Exerap ouside sales work fincas nt only the als of cemrodites, ut also “obtainiogcxders oF contract for services of forthe use facto for which 9 considaration Sv be pai bythe liens or custamer Obtaining orders for “the use of facilites incbudes the selling f time bain rnc, he atin of Sdvertining for newspapers end okher petiodical, and the tllitation of Folgltforealtoeds and other tanepariation agencies (ithe word Sservlees” extends the cutee sles exemption te amplovees Sebo sella fake cedar fra service, Yrbich may be ponformee fore Cistomer Ey scimeone oxber Shen the parson teking the order. $541,502 Away trom employer's place of bosinass. “An outside sales employee must be cristomarily and regularly engaged ‘way from the exaployer's place or 48, No, 79/ Friday, April lat fines” Employes san employes who makee Slee at tr customers place of a5 p08 Sr. af eling dor o-dar, tthe Cistoners ome. Outi ales does not ‘ude salu sade by rai telephone athe oteret unless such contact {hod nor sa adjust personal Salis Te. eny ed ite, wlethen ome or office, uted by ealesperson az 2 hedgers or for elepbomie Saliitaton of eales is coneered one of Ebeeloyer ples of bescnn oven {boughs employer ie nok in a Tormal sense the awpor or temas! of the propery However pn ose sales Employee dace not loe the exemption Sy dsspiog samp in ove samp ‘ore during rps hom city ti bese sump rons shoul noth considered as tbe players places of Seine Simla oui sles pte dos one ton Uisplaying De employers products ate wade show. telling ctl Coma eather th jst sates prometion, Sf shows of chon duration (fone tx two wees) could not be ensidered fs the employers place of business §541503 Promotion work {e} Promotion sores one type of activity en penformed by parsons who hake tales lich may or may oot be hemp ouside sles work depending Thon the cieumetances wndar which i {2 poeformed Prometional work thats aetunlly pesformed ieidentl‘oand In conjunction with an employees own tutade sales or eolictatona te exempt ‘work On the other hand, promotions) work thats ncidental to sles tad, or tobe muda, by someone els isnot tort cuts sles work: AD ple wh de ot tthe Feguuzemeats of subpart may sil halfy eran exernpt employee under thor rubpars of ule. Gb] A manufactures representative fer example, ay patton various typos of promtianal ecbeles such as puting dp dispeye and posters, maving imaged er epoiled stock fom the Inerdant's selves a rearranging the Inerchandlse. Such an employee en be Considered an exempt outside selon ployee the employee’ primary fhuty te making elu o” contacts. Promotion activites decd toward Ccaeumimetion ofthe employee's own Salee ar exempt, Promotional aces dleugned to aimulate soles tha wil be ‘nade by someone ele ne not exert outside sales work (cl Another examples 2 company representative who visits chain stores, tefenges the merchandise on shelves fwplenishes stock by replacing old with sul merchandise, ects up displays end 2004 /Rules ond Regulations consults with the store manager when fnvontary nung Jaw, but does not obtain f commitment for additional purchases. ‘The arrangomens of marchandise an the shelves of the replenishing of stack is rot exempt work unloss iis incidental taand in conjunction with he trployae's own outside sles Because the employee inthis instance dees nol consummate the sile nor divect efforts toward the consummation ofa sae, the work ig not exempt autside sales work. 541.504 orivers who sl {a} Drivers who dover products ena also sell such producta may quay a8 sump ests alos employens only the eipployee has s prcaary dty of ‘Baling sales In devermining che brimary duty of Grivere wins ell work Devformed Lcidental to ond is Conjunction with tae employee's oem futside sales or salicttions schuding Fooding, driving or delsvering procs shu edo omg oe 1b) Several Sectors sould bo considered in determining ie diver Sage pery ty of alin ls. incuding, bat ao lated or a comparison ofthe drivers duties with ‘how of eter employees engrged as truck devote ond as talesperson, possession of selling ot sllctiar's Feonse when suck icone is tequtred by law or ordinances presence or absence of eastomsary 0» oostactual Srrangemenis conoe=aing agscunts of fraduots to he Gabivered: Seacrption of {hs employer's eccupation in ealleetve barging agreements: the employers specications as to qalifestons for Eisng caloe trtning attendance at sles confetoncer meio of payinent nd Proparton of sazainge directly Eteibutable ta clos {G) Davers who may qualify as exempt cutatde sles omployoet include: 12) A cuiver who provides the ony sales contact between tbe employer and the customer visited, who call on txstomers and tks onda fr products, teh dolivore prosucte or stock in the bmployer'swaticle or procures and felives the product to te customer 08 Slate rip, and ho veel ompebcition commensurate with the Nolame of product old (GY Ge whe his ows orders for the employer's prods om persone who have autho to coma Ee customer for purchases {o) A cniver wit cals om neve prospects for customers along tse Eroployeys rote and steapts to ‘ontince thom af the dostabiityof sccopting ropvlardelsvery of geod (aha diver win clls on exebishod caistomers along the raute and Federal Register/Vol perma rgula eutomen to wecpt Eitvery of ingreaed amounts of goad or of bow prodat, eventhough de futile or agreement fer dlivery shasanace hy someone lee. EiDed Meee wou t palit a exempt Stade nes Seplyees inclu CE soe doer whose primary duty tel taaupent products sid byte tuployerlvoogh vending machines tnd io keep sue chines socked tn good operating condition, sndin good ‘Seasons {G1 dover who often cal on, establishes eostomere day afar Say of ‘rook ater week, deivering quant of dheemplayers peoduce a ech cal ston tae fale ons nt sgniealy {ced by soictatioar of tbe eustomer Ete dellering diver or the stooune of de sae i edt by th lume Shta customnor sons since te prove delivery {3} dever pray engaged in mailing daliveer so customers and perforin activites intended te Promote ties by eastomers eluding Hcl pasate end tor, Fiverthing astral price stamping Coonmodies amenging mercer on ‘tive, in coolers ora cabinet Fetaingevck according to date, ane loaning ana othorvioe serves iSpy cates) lene such woek en fusthetance of the driver's ovn alos rs Subpart G—Salary Requirements {$547,600 Amount of salary retire. {a To qualify as an exert executive adininistetve cr profession@l employee “nda section 13(a)) ofthe Art an tmuployes must be compensted or @ Salary basis at arate of uot less than, ‘$458 por soak (or $380 per week, employed ip American Samoa bY tmaployere chet than the Fede Gaver eau of bod, lodging or ather fclsts, Adinitistrative and professions) employers may aso_be paid cn 8 fee Sacks, as cabin $545 60s. io) The $438 a wok maybe translated into equivalent amounts fer periods longer than ue week. The requirement weil be met ifthe employee is Compensated biweekly cn a salary basis ff $226, comsimonthly on salary basis 2£8965.63, or monthly on « salesy basis 9f $1,973 60, Hwover, the shortest period of payment tht will meet this Enmpensaticn requirement is one week, ielis the cose of scatirme adininistative employers, te Compensation reqiirement aso may be rat by compensetion on a slary basis te rote a [east ous! tothe suzance 69, No. 79/Friday, April 28, 2004/Rules and Regulations 22269 salary for techs in he esneationad esteblihmnent by wich dh empingenis ployed, as rovided in Sou seuelt (alin he cere computer emplasies, die compensation oghiamen les my bo mat by ‘clspenston onan boar ct t © ‘ee aor less ba $27.98 a0 boon, a provided in §541.400(b). Te) the asso prassional omplayees, the compensstion ‘quence sn di Section sal not Sly toomployene engaged as tenchers he} ser 300) employers who noid Se cen a enrioteperoiting {practice of law or ediine or ay of Wer bench ac are actually gaged lathe pastice thevet (ase Fen 909) ore eaplayoos who ols thormguiie sexeetic Segre forte {ener practice of medicine and sce Scgnzed ison interaebip or roscent ‘rope pursue tothe proces of te Droeson (Soe §341 908 te he case of Foadicl cutapetions the exeeption Fo the slay ot ee vequcertnt Goes zor apply fo pbanmaciets mares, rapist, ochaclopists, setarins ‘ethane, soil wessars,peyebolost poychotnisa, cr other professions Bich service the motion pofecion '§541.601 Highly commpenstod employees. (a) An exoplayee with total annual ‘compensation ofa least $100,000 is ‘dueanod exempt ander section 23(@)(1) ofthe Aceif the employer castomarly fand regularly pevfonme any one cr more oftha exempt duties or responsibilities fan executive, administrative or professianal employee identiieg io Sojparts B,C or Dof this part, (0) (1) “Total annual compensation" must inchide at lest 8455 por wosk ped on Slay os bans. Total Eenwal compensation may also include ‘commissions, nondiscretiomary bonuses dnd other pondiscrtionary compensation eared during a 52-week period. Total anmial compensation does ‘hot include board, lodging and other feclibes af ened in § 643,606, and does not snckude payee for medical ‘ngurance, payments for Ife meurance, ‘ontriutons to etiement plans end the cog of ether fringe beneiits. (2) if en employer's total annual ‘compensation does not tal at last the ‘minkzu amount established in ‘paragraph (e) ofthis section by the Last Fay prod ofthe S2-week pete, tbe pmiployer may, during the last 2, ppetiod or within ane maath afer the fend of the 92-wook period, make one final payment suficiont tc achiove the sequaired lovel For exazaple, «> ‘employee may enm $80,000 23 base Salary, and the employer may anticipate based upon past sles thatthe employee also will eam $20,000 in commissions “However, due to poor seles in the final ‘queries ofthe yea, the employee actually only garué $10,000 in ‘Commissions. In this situation, the emaployer may within one month after the end of the year make a paymont of a lt $10,000 0 the employes. Any ‘much finel payment made after the ond of the 52-week period may count only {toward tbe prior year's total anna) ‘compensation and not award the total nial compensation inte year it Was paid I'the employer fails to make such 2 payment, the employee dove not ‘ally as «highly compensated tmplovoe, butmay still qualify a exempt under subparts B, Cor D of this Pe {3} An emplayee who does not work a fll year fer Se employer, ether besture te omplever is newly hie ater th bogaing of the year ar ends he employment Refore the ena of yeas, ay quality Sor sxemption uncer ihis becom ifthe employee ecatves @ provera prion te mini tsount established in paragraph () of {Bis section, heed upob tbe nimber of esi apoyo il be rhs been exiployed Ab employer may make one Sal payment av unde! parsprpls Ue of hi eon with ne oth Barth end or employment {Gl The employer easy willze say waek period as he yew, such as « Calendar you, «face oat or a uuivereary ofbire year, i te employer ons not sdeasfy somo other er pened fn advance, Sie calendar vor wl app "EWA bigh lvel of componsetion is « strong indicator of en employee ® Gnempt status, us eliminating the need fora detailed analyte of the employees job dutice. Thus, hughlv compensated Employes will qualify for exemption f Le employee customarily and regulae)> pecans ny one ot more ofthe exempt Eiies or respousiiltes of oo executive, administrative or rolessicnel employee idexibed in Pubpars B, Cor of this part. An sraloye gy gaily 8 214d) Chmponssteg executive employes, for ‘ample, # the employes eascomantly tod replay dvets the work of two fncre other employees, even Suswgb the Etapleyee does oct meet el ofthe ater requirements for the executive fxemplion ander $542 100 (alia etn pin oly employees whose prinery duty inchudas petlonining office or nom-taml work ‘Fhus, for example, non-menagerant prodictonline worse and aoa. ‘Eqnegemont mployeae ox masotenance, onstruction and sullar cooupetions 22270 Federal Register/Vol bol as carpenters, eleciians Iocbanses, plumber, ran workers, Zefogon cperating ngences Kengenarom, eonsrssion workers Itboros and ctherempayees wo Dorf work volving ropeitve Spentions with thoes, piysical Thinand energy are not exp wade: tht seston ne attr ow Rnly pad they mgt be 8541608 Sain ota i noal le. nn none we be, cose bapa ond say be Sau anes ft mga eee er pied coer ech Heres Sc lly ore gue BORE edu’ ane esi llr pa af th ampnee’ ‘CEponanon, hl oncunt et SESE ecco bare of Salo oe ganar guest of MEME lime Stet obo tact rolsedm pungeph ct SETEERaEer neem Employes man sae elon baty nl Sus ain vor on woo Ihithout regard to the mamber of days o> EOE emer unpzyeon ae read fer any earuno wch ey elem oo woos At pyee ie bot pd ona aay bait tans TPs caper rota! (ate ge made or aennes SeEEiatd he mployer ory he Sprndag restr ote bees, Sf enh eee nay wing oe Ai oie daucions map aetbe SUSU whee wont Pate espns prohibition etalon fle py inte {Sci raguioent bj the in exeopne HEELS ay tet vite ehcp nj a at SORE or one are day fo Pee con sr hu ek or SIRE Thuy en employe en on ill aye noncle SLT. splovenselied orate tected cera tio hom tie slay fortwo ll Sy Ader oweven fan emt iloon ssa or eee a Se percent he enployer Seu raaly forthe oa ay ee #5 Sacon fom py may made tos consa foto rll a SoStonoby setae oat (eR baton arden) he Seren Sikece im scocann wih see athe poiey or gare oun aomganaton bree of iy acsel ty au scl Eisablity. The employer is not required ‘ey ay por a ne pees SRY RPETSY eons br ch 68, No. 79/Friday, pri 29, 2004 /Rules and Regulations the eimployes receives compensation lunder the plan, policy or proce. Deduction for such fall-day absences tlso may be mada befaro te empioyee hha qualified uader the plan, poly or practice, an after ti omloyee bas shad theless allowance thereunder Tas, for example, fan fmpoyer meitains «shart term ‘isshilty inmurence plan providing Salary replacernont for 12 weeks stating tn the faut day of ese, the Smnployer ay make deductions Kom pay fo the tite deys of absence betore Tie emplavoo qualities for bnelits funder tbe plas for tho twelve weeks in Whlas the employee recives salary replacement uonotits usder the pie tau for absences afta the employes has trohmted te 12 wooks of sary ‘Rplucement benebts Spiers, an mplayer mey meke deductions from pay fr abrences of one or noe fll [jel slaryseplncement banofte are provided uders State dssbihty Esurance law or under e Sete worker compensation lew (Ghiihilean employer cannot make deductions from pay for absences of an Sap employer ocaine by 1 uty, tenance ara witness of tespray ly have, epoyer tan offset any amounts received y an Sraployee as Jury foes, witness fees or tnilitery pay fora particular week gaint the salary for tat parloslar ‘Weak-withoat los of the exemption ia) Doduessons fom pay ot exert employees may be made fr penalties {inposed i good fot for ineuctions of tery rilee of major sigaticance, Sal Files of major signtcance iniude those Telating tothe preven of srious soger in the workplace oF te other frployees, sch ax ales prosbiting Smoking in explosive plats, of Telluerie and col ines (6) Deductions fom pay of exempt ‘enuployees may be made for ual EsSplinay suspensions of one oF more {ull daye imposed in good fth for inGactions af workplees cancict res Such suspensions rut be imposed pontoant to 2 writen policy app teable Boalt employees. Thu, fr example, an employer may suspend an exempt trmployee withovt pay for three days or ‘inating e genrally applicable writen pobiey probibsong sexual eressment Eira, an employer mey suspend em exempt eaploye without pay for fwelve daye for vickting a peterliy "engl len pty poking ‘Workplace viglenor {Gyan employer is not roquted to pay che ful cata Sth lial os ermal Wook of emplovinent. Rather, an Cinployer may poy a proportionate part fen employee's full salary for due Hime ‘actually worked sv th Sst and lot woek of employment Ia euch weeks, the payment ofan hourly: ally qlivslent ofthe employee's al slay forthe tine actully worked will meot Merwquizement, However, amplevers soy ol pi on lan so hn he Ineaning of tse mpulaions it they are Snployed occsionly form fer des, find the smplayer pays thea proportionate par of te weekly salery whan pana = FT Art mployer is oot required to pay oh ileal fr wen inhi en txompt employee takes usipad leave tinder the family ane Medical Leave 1Rot Ratner, wen an exempt employee fakes unpaid leave sade the Family find Medical Leave Act an employe? ‘nay pay @ proportionate part of the fall it oe acy ape Fee reraple, fsa employer wh normally trorks a hours per week uses four Hour af unpud neve uncer the Femily and Medica! Leave Act the empayer Shuld dase 0 perce of he xployee's oral galery thst wes TE) When calculating the amount of desu led ude paragraph (b) of tis action, the Enployeraay-use the Dour oF daly Salen th pane’ fll wetky Seluy or any ofner aot propottional iS the kine actualy anened iy De femployen, A dedetion fram pay 00 @ peut) for violations of major safety Fle under paragraph O03) of thls Secon mey be made in any eeu 541.603 ict of improper deductions fom enany. Ta) An employer who makes improper deductions foun sary sal ose the fsempton ifthe facts damonstate that the employer did not tend t poy Emplayoet op a salary bane, x ata practice of making nnprope> deductions Aetmoustater that the employer dia aot intend to pay employees on a slary basi The icons ts Consider when dotermining whether an entployer he th pctual practice of maling iiproper Stdcttng anche, tare no lito {othe aumtber of proper deductions, Drticalary as compared to Die number Cremployee infections warresting ising: he ime period during Sehich Ope employer made improper Gaductions te momom and geosrenbic focaton af employece whose salary was {npropetty reduces the number end seogrephie location of mansaers Fesponsibe fa taking de improper deductions; and whether dhe employer bbs a cleely communisted policy ring or probing nO ietcuea tats {hte acts demonstate that the employer hay an actual practes of Federal Register/Vol. 69, No, 7¢/Friday, April 29, 2004/Rules and Regulations on me ne a pe ometiecyriatm Etre job canst of wo rock ee eee eed Sranogert, bowever, woulGrerain {o) improper deductions that are ae a queues Rotate, such employer wil ot lose the SS cea eee eee Soret ped Lae Hee ting ee ceria nae aoe ‘Siponste forth ote! mproper Beh oobi AS eS OE aia 15541608. Minimum guarantee plus extras, {e) An employer xy provide an exempt employiee with additional Compensation widiout lesiog the exemption or violating the salary basis requirement, ifthe employment ‘rangement also mcludes a guarentee i at Jens he minim weekly- Sequied amount paid ona salary basis, ‘Thus, or exemple, a exempt employee fperanteod a least $s each weak pald he salty basis may also roaive fiditeas! compensetion of sone percent commission on eles An ‘cept emer as may rev 8 jscentage 9 the sale or grants Of ta Eiploye ifthe employment inangement also incu ¢ guarantee Stat leet $495 each week pad ona falary bens. Som arly, the exemption ie Slow ifs exempt anpiyse {guaraniced at feat 5495 cach week paid Ent sulary Sess alan rocnivesaddidona) Compensation based on bows worked for work beyond the neazal workweek, ‘Such additional compensation may be paid on any bate Of ay ames yinent suevgsesioe hotly SOU, Ene aud one-half or eny othr basis), snd ay include paid tee ot {Ga erp ployee pening say be computed on a8 bouny. 8 dal Ora shia basis, withowt Losing the. txemtion or violating the sary bass reguitoment ifthe employment Srrangerent ako bcdes pumantee tat leat toe minienar swoelyYegulved fount paid oma salary bas rogardiess flthe number showr, days or sits ‘rocked, and a reasonable relationship ‘hts between the puarantens emoust ‘2a the amowtserually earued. The Fascist celaticship txt wil be act ‘Pibe weakly evaraniee is roughly sual he ompeyee sel farotags et the astigned hourly. daily ot Shiftzute dor the employee's nome cheduled workweek Thus, fr ‘vamp, am sxempt employee fuarubloed compencetion of atleast {S00 dor any wook nich the cexployee penooms any vox, ad who Sonmelly works four or five abt cae ‘weeks my be paid $250 por cit Srithout violating the snlery baste requirement. The reasonable Fehon pues ppg oy f he employes pay ie compated on Fbousy dally or sift beats doesnot apply, for exazaple, to aa exompt store ouuager pad goavamteed slay cf 55650 por woe: wie also receives @ commission of ae half porcont ofall Ses inthe store ox five percent of tho ‘owes profit, which in Same wooks toey teal as mano a, or even Tore ‘an, the guaranteed salary pet 605 Fee nasi (a) Administrative and profassionsl employees may be paid an 2 foo basis, rathor than on salary basis. An employee vill be considered tobe paid (ha Tee besis” wit the meaning of ‘Giese regulations if the emplayee i paid fu agren! sum fora single job regardless 22271 sf tone eg i scampi. se payientsreemble pleco opments with he nporiantsiatneson ‘iR genrally "We" te psd fn the ind af ob tat ie tulgee ater then fora Sesls ob roped an inden Sunboeref tet and fr wes payment Gna desea! bai sande ove ed Sroragun.Peymeots Seed om the ST of hours or dae worked and Zeton be acomphatnent of gon Single nck me at consicered peyrvonts ona fee basis, a it) Fo Setrmine water the fe payne iat of Elty require for exemgtion unger Sealine ant do Toplayee wil be tse ‘ete ine worked on te job Sod whet te fon payment rata te ‘hat would amount vo leas $5 pre woot ithe employee woed €0 bers. Thus, an ardetpal $080 fra picsae that tok 20 houre to complete ovis the ‘ninimums colar regeremet fr ception sce esening tate ‘would yield te nit $800 0 Bours Nore waned {§541.606 Bord, loagng orator acts. (a) To qualify for exemption under section 23(a(} af the Act, an exmployes ust worn the mlaisrus salary gust Eetfonb in £644.600, “oxcusive bose lodging or

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