Glossary

Some of the terms and phrases used in this Advisor have particular meanings that are specific to the Regulations, Part 541. These terms are defined here to help you better understand how the regulations apply to specific employment situations. As you run this Advisor you will have the opportunity to return to the glossary to review the definitions when the terms are used.

Management or general business operations
For purposes of the administrative exemption criteria, "management or general business operations" means work directly related to assisting with the running or servicing of the business and 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; and
• legal and regulatory compliance.

This illustrative list shows types of functional areas or departments typically considered administrative in nature. It is not intended as a complete list of exempt areas, nor is it intended as a listing of specific jobs. Rather, the list shows functional areas or departments that generally relate to management and general business operations, although each case must be examined individually. Within such areas or departments, it is still necessary to analyze the level and nature of the work in order to assess whether the administrative exemption applies (i.e., does the particular employee exercise discretion and independent judgment as to matters of significance?).

Management or general business operations of his or her employer's customers
This includes work as described under "Management or general business operations" performed on behalf of the customers of the employee's employer. For example, a tax advisor or a marketing consultant employed by a firm which furnishes such services to its customers or clients for a fee.

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