29 C.F.R. § 541.201

Directly related to management or general business operations

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(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.

Notes of Decisions
Cited in 271 cases (78 in the last 5 years), 1975–2026 · leading case: Samuel Calderon v. GEICO Gen. Ins. Co., 809 F.3d 111 (4th Cir. 2015).
Samuel Calderon v. GEICO Gen. Ins. Co., 809 F.3d 111 (4th Cir. 2015). · cites it 8× “” 29 C.F.R. § 541.201 (a); see Desmond I, 564 F.”
Susie Bigger v. Facebook, Inc., 947 F.3d 1043 (7th Cir. 2020). · cites it 3× “” 29 C.F.R. § 541.201 (a). The regulations provide a list of functional areas in which this kind of work is often performed.”
Matthew Dewan v. M-I, L.L.C., 858 F.3d 331 (5th Cir. 2017). · cites it 4× “The district court also found that “nearly all of [the plaintiffs’] working time related directly to continually monitoring the mud for quality control, in compliance with 29 C.F.R. § 541.201 (b)....” That section of the regulation identifies functional areas that are directly…”
Combs v. Skyriver Commc'ns, Inc., 13 Wage & Hour Cas.2d (BNA) 1497 (Cal. Ct. App. 2008). · cites it 7× “That regulation ( 29 C.F.R. § 541.201 ) is one of the federal regulations expressly incorporated into wage order No.”
Desmond v. PNGI Charles Town Gaming, L.L.C., 564 F.3d 688 (4th Cir. 2009). · cites it 5× “In addition, it noted that Racing Officials “are involved in” work functions identified in 29 C.F.R. § 541.201 (b) as related to the general business operations of an employer, including quality control, safety and health, public relations, and legal and regulatory compliance.”
Schaefer-LaRose v. Eli Lilly & Co., 679 F.3d 560 (7th Cir. 2012). · cites it 4× “Schaefer-LaRose’s marketing and promotion work was clearly distinct from the company’s production of pharmaceuticals, and, as such, satisfied the requirement raised by the production/administration distinction described in 29 C.F.R. § 541.201 (a). The court then rejected Ms.”
Gregory Lutz v. Huntington Bancshares, Inc., 815 F.3d 988 (6th Cir. 2016). · cites it 4× “” 29 C.F.R. § 541.201 (c). To determine whether an underwriter’s work directly relates to management or general business operations, we apply an “administrative-production dichotomy.”
Neary v. Metro. Prop. & Cas. Ins., 517 F. Supp. 2d 606 (D. Conn. 2007). · cites it 4× “29 C.F.R. § 541.201 (a). Section 541.201(b) enumerates several examples of such work, including “work in functional areas such as tax,” “auditing,” “insurance,” “purchasing,” and “research.”
Clark v. Shop24 Global, LLC, 77 F. Supp. 3d 660 (S.D. Ohio 2015). · cites it 5× “” 29 C.F.R. § 541.201 (a). 4 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;…”
Scott v. Chipotle Mexican Grill, Inc., 954 F.3d 502 (2d Cir. 2020). “" 29 C.F.R. § 541.201 (a). The applicability of both exemptions turns on the "primary duty" of an employee.”
Smidt v. Porter, 695 N.W.2d 9 (Iowa 2005). · cites it 2× “29 C.F.R. § 541.201 (b) (2002) (noting job titles may be “had cheaply” and have “no determinative value”); see, e.”
Bigger v. Facebook, Inc., 375 F. Supp. 3d 1007 (E.D. Ill. 2019). · cites it 3× “" 29 C.F.R. § 541.201 (a). The distinction between assisting with running the business and working on a production line or selling a product is referred to as the "production versus staff" dichotomy.”
— 29 C.F.R. § 541.201(a) — 10 cases
Weisfeld v. PASCO, Inc., 2013 Ohio 1528 (Ohio Ct. App. 2013).
Peterson v. Snodgrass, 683 F. Supp. 2d 1107 (D. Or. 2010).
Nigg v. U.S. Postal Serv., 829 F. Supp. 2d 889 (C.D. Cal. 2011).
Palacios v. Boehringer Ingelheim Pharm., Inc., 814 F. Supp. 2d 1357 (S.D. Fla. 2011).
— 29 C.F.R. § 541.201(b) — 12 cases
Soderstedt v. CBIZ S. California, LLC, 197 Cal. App. 4th 133 (Cal. Ct. App. 2011).
Weisfeld v. PASCO, Inc., 2013 Ohio 1528 (Ohio Ct. App. 2013).
Nigg v. U.S. Postal Serv., 829 F. Supp. 2d 889 (C.D. Cal. 2011).
Hinely v. Am. Fam. Mut. Ins. Co., 275 F. Supp. 3d 1229 (D. Colo. 2016).
Harper v. Gov't Employees Ins., 980 F. Supp. 2d 378 (E.D.N.Y 2013).
— 29 C.F.R. § 541.201(c) — 1 case
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