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.
An employee will be considered to be paid on a "fee basis" within the meaning of
the Regulations, Part 541 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.