29CFR541.201 - Directly related to management or
general business operations.
Section Number: 541.201
Section Name: Directly related to management or general
business operations.
(a) To qualify for the administrative exemption, an employee's
primary duty must be the performance of work directly related to the
management or general business operations of the employer or the
employer's customers. The phrase ``directly related to the management
or general business operations'' refers to the type of work
performed by the employee. To meet this requirement, an employee must
perform work directly related to assisting with the running or
servicing of the business, as distinguished, for example, from working
on a manufacturing production line or selling a product in a retail or
service establishment.
(b) Work directly related to management or general business
operations includes, but is not limited to, work in functional areas
such as tax; finance; accounting; budgeting; auditing; insurance;
quality control; purchasing; procurement; advertising; marketing;
research; safety and health; personnel management; human resources;
employee benefits; labor relations; public relations, government
relations; computer network, internet and database administration;
legal and regulatory compliance; and similar activities. Some of these
activities may be performed by employees who also would qualify for
another exemption.
(c) An employee may qualify for the administrative exemption if the
employee's primary duty is the performance of work directly related to
the management or general business operations of the employer's
customers. Thus, for example, employees acting as advisers or
consultants to their employer's clients or customers (as tax experts or
financial consultants, for example) may be exempt.
