Section 541.200 - General rule for administrative employees(a) The term "employee employed in a bona fide administrative capacity" in section 13(a)(1) of the Act shall mean any employee: (1) Compensated on a salary basis at not less than the level set forth in § 541.600 ;(2) Whose primary duty is the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer's customers; and(3) Whose primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.(b) The term "salary basis" is defined at § 541.602 ; "fee basis" is defined at § 541.605 ; "board, lodging or other facilities" is defined at § 541.606 ; and "primary duty" is defined at § 541.700 .69 FR 22260, Apr. 23, 2004, as amended at 81 FR 32549, May 23, 2016; 84 FR 51306, Sept. 27, 2019 84 FR 51306, 1/1/2020; 89 FR 32971 7/1/2024