The terms ``executive'' and ``administrative'' as used in section
13(a)(1) of the Act are defined and delimited in subpart A of part 541
of this chapter and explained in subpart B of that part. These
regulations are applicable under the amended section 13(a)(1) in
determining which employees are bona fide executive or administrative
employees. The clause that is enclosed in parentheses in section
13(a)(1) and which reads ``including any employee employed in the
capacity of academic administrative personnel for teacher in elementary
or secondary schools'' was added by the 1966 amendments to the Act. This
clause will not have any affect in the application of the regulations to
retail or service establishments. The Act and the regulations point out
the fact that an executive or administrative employee of a retail or
service establishment may devote up to 40 percent of his hours worked in
a workweek to activities which are not directly and closely related to
the performance of executive or administrative activities and still
qualify as a bona fide executive or administrative employee. However, in
other types of establishments such a tolerance is limited to 20 percent,
except where special provisions are made in part 541 of this chapter.
