Content Last Revised: 4/23/04 ---DISCLAIMER---

29CFR541.103 - Department or subdivision.

• Section Number: 541.103
• Section Name: 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, 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.