CFR |
Code of Federal Regulations Pertaining to ESA |
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Chapter
V |
Wage and Hour Division, Department of Labor |
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Part
541 |
Defining and Delimiting the Exemptions for Executive,
Administrative, Professional, Computer and Outside Sales Employees |
- Section Number: 541.605
- Section Name: 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 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.
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