by an executive or administrative employee of a retail or service establishment does not apply to employees of a multiunit retailing operation, such as a chainstore system or a retail establishment having one or more branch stores, who perform central functions for the organization in physically separated establishments such as warehouses, central office buildings or other central service units or by traveling from store to store. Nor does this special tolerance apply to employees who perform central office, warehousing, or service functions in a multi-unit retailing operation by reason of the fact that the space provided for such work is located in a portion or portions of the building in which the main retail or service establishment or another retail outlet of the organization is also situated. Such employees are subject to the 20-percent limitation on nonexempt work. (b) With respect to executive or administrative employees stationed in the main store of a multistore retailing operation who engage in activities (other than central office functions) which relate to the operations of the main store, and also to the operations of one or more physically separated units, such as branch stores, of the same retailing operation, the Divisions will, as an enforcement policy, assert no disqualification of such an employee for the section 13(a 1) exemption by reason of nonexempt activities if the employee devotes less than 40 percent of his time to such nonexempt activities. This enforcement policy would apply, for example, in the case of a buyer who works in the main store of a multistore retailing operation and who not only manages the millinery department in the main store, but is also responsible for buying some or all of the merchandise sold in the millithe branch nery departments of stores. APPENDIX TO PART 541-OCCUPATIONAL INDEX NOTE: This index lists, for ease of reference, the sections of this part which refer to job titles. The user should note, however, that where job titles do appear in the illustrations in the text, they should not be con strued to mean that employees holding such titles are either exempt or nonexempt or that they meet any one of the specific requirements for exemption. Accountant, 541.302 Account executive, 541.201, 541.205 Actor, 541.303 Adjuster, 541.205 Advisory specialist, 541.205 Analyst, wage rate, 541.201, 541.205 Announcer, radio, 541.303 Assistant, administrative, 541.201, 541.205, 541.207, 541.208 Assistant buyer, 541.105, 541.201, 541.205 Assistant, executive, 541.201 Assistant department head, 541.105 Broker, customers', 541.201, 541.205, 541.207 Buyer, 541.108, 541.201, 541.205, 541.207, 541.501, 541.602 Buyer, assistant, 541.105, 541.201, 541.205 Buyer, outside, 541.501 Chemist, 541.302, 541.306, 541.307 Clerk, accounting, 541.302 Company representative, 541.504 Computer operator, 541.108, 541.207 Computer programer, 541.108, 541.207, 541.302 Conductor, 541.303 Consultant, 541.205, 541.207, 541.208 Copyist (motion picture), 541.303 541.205, Credit manager, 541.201, 541.205, 541.207, 541.208 Engineer, 541.302, 541.308 Examiner, 541.108, 541.207 Executive secretary, 541.201 Financial consultant, 541.205 Foreign exchange consultant, 541.201 Head bookkeeper, 541.115 Illustrator, 541.313 Inside salesman, 541.502 Inspector, 541.108, 541.207 Inspector, insurance, 541.205 Inventory man, traveling, 541.201 Key punch operator, 541.207 Junior programer, 541.207 Labor relations consultant, 541.205 Labor relations director, 541.201 Supervisor, production control, 541.201 Tax consultant, 541.205 Tax expert, 541.201, 541.205 Teacher, 541.215, 541.300, 541.302, 541.304, 541.307, 541.315 Technologist, 541.314 Television announcer, 541.303 Teller, bank, 541.205, 541.207 Timekeeper, 541.108 Traffic manager, 541.208 Trainee, 541.116, 541.210, 541.308, 541.310, 541.506, 541.508 Trainer-salesman, 541.506 Truck driver, 541.207, 541.505 Utility representative, 541.201, 541.504 Working foreman, 541.115 Working supervisor, 541.115 PART 547-REQUIREMENTS OF A "BONA FIDE THRIFT OR SAVINGS PLAN" Sec. 547.0 Scope and effect of part. 547.1 Essential requirements for qualifications. 547.2 Disqualifying provisions. 547.3 Petition for amendment of regulations in this part. AUTHORITY: Sec. 7, 52 Stat. 1063, as amended; 29 U.S.C. 207. SOURCE: 19 FR 4864, Aug. 3, 1954, unless otherwise noted. § 547.0 Scope and effect of part. (a) The regulations in this part set forth the requirements of a "bona fide thrift or savings plan" under section 7(e)(3)(b) of the Fair Labor Standards Act of 1938, as amended (hereinafter called the Act). In determining the total remuneration for employment which section 7(e) of the Act requires to be included in the regular rate at which an employee is employed, it is not necessary to include any sums paid to or on behalf of such employee, in recognition of services performed by him during a given period, which are paid pursuant to a bona fide thrift or savings plan meeting the requirements set forth herein. In the formulation of these regulations due regard has been given to the factors and standards set forth in section 7(e)(3)(b) of the Act. (b) Where a thrift or savings plan is combined in a single program (whether in one or more documents) with a plan or trust for providing profit-sharing payments to employees, or with a plan or trust for providing old age, retirement, life, accident or health insurance or similar benefits for employees, contributions made by the employer pursuant to such thrift or savings plan may be excluded from the regular rate if the plan meets the requirements of the regulation in this part and the contributions made for the other purposes may be excluded from the regular rate if they meet the tests set forth in regulations. Part 549, or the tests set forth in Interpretative Bulletin, part 778 of this chapter, §§ 778.214 and 778.215, as the case may be. § 547.1 Essential requirements for qualifications. (a) A "bona fide thrift or savings plan" for the purpose of section 7(e)(3)(b) of the Act is required to meet all the standards set forth in paragraphs (b) through (f) of this section and must not contain the disqualifying provisions set forth in § 547.2. (b) The thrift or savings plan constitutes a definite program or arrangement in writing, adopted by the employer or by contract as a result of collective bargaining and communicated or made available to the employees, which is established and maintained, in good faith, for the purpose of encouraging voluntary thrift or savings by employees by providing an incentive to employees to accumulate regularly and retain cash savings for a reasonable period of time or to save through the regular purchase of public or private securities. (c) The plan specifically shall set forth the category or categories of employees participating and the basis of their eligibility. Eligibility may not be based on such factors as hours of work, production, or efficiency of the employees' Provided, however, That hours of work may be used to determine eligibility of part-time or casual employees. (d) The amount any employee may save under the plan shall be specified in the plan or determined in accordance with a definite formula specified in the plan, which formula may be based on one or more factors such as the straight-time earnings or total earnings, base rate of pay, or length of service of the employee. (e) The employer's total contribution in any year may not exceed 15 percent of the participating employees' total earnings during that year. In addition, the employer's total contribution in any year may not exceed the total amount saved or invested by the participating employees during that year: Provided, however, That a plan permitting a greater contribution may be submitted to the Administrator and approved by him as a "bona fide thrift or savings plan" within the meaning of section 7(e)(3)(b) of the Act if: (1) The plan meets all the other standards of this section; (2) The plan contains none of the disqualifying factors enumerated in § 547.2; (3) The employer's contribution is based to a substantial degree upon retention of savings; and (4) The amount of the employer's contribution bears a reasonable relationship to the amount of savings retained and the period of retention. (f) The employer's contributions shall be apportioned among the individual employees in accordance with a definite formula or method of calculation specified in the plan, which formula or method of calculation is based on the amount saved or the length of time the individual employee retains his savings or investment in the plan: Provided, That no employee's share determined in accordance with the plan may be diminished because of any other remuneration received by him. (Approved by the Office of Management and Budget under control number 12150019) [19 FR 4864, Aug. 3, 1954, as amended at 47 FR 145, Jan. 5, 1982] § 547.2 Disqualifying provisions. (a) No employee's participation in the plan shall be on other than a voluntary basis. (b) No employee's wages or salary shall be dependent upon or influenced by the existence of such thrift or savings plan or the employer's contributions thereto. (c) The amounts any employee may save under the plan, or the amounts paid by the employer under the plan may not be based upon the employee's hours of work, production or efficiency. § 547.3 Petition for amendment of regulations in this part. Any person wishing a revision of any of the terms of the regulations in this part may submit in writing to the Administrator a petition setting forth the changes desired and the reasons for proposing them. If upon the inspection of the petition, the Administrator believes that reasonable cause for amendment of the regulations in this part is set forth, the Administrator will either schedule a hearing with due notice to interested parties, or will make other provision for affording interested parties an opportunity to present their views, either in support of or in opposition to the proposed changes. § 548.1 Scope and effect of regulations. The regulations in this part set forth the requirements for authorization of established basic rates to be used in the computation of overtime pay in accordance with section 7(g)(3) of the Fair Labor Standards Act of 1938, as amended. Payment of overtime compensation in accordance with other subsections of section 7 of the Act is explained in part 778 of this title (Interpretative Bulletin on Overtime Compensation). § 548.2 General conditions. The requirements of section 7 of the Act with respect to the payment of overtime compensation to an employee for a workweek longer than the applicable number of hours established in section 7(a) of the Act, will be met under the provisions of section 7(g)(3) of the Act by payments which satisfy all the following standards: (a) Overtime compensation computed in accordance with this part and section 7(g)(3) of the Act is paid pursuant to an agreement or understand ing arrived at between the employer and the employee or as a result of collective bargaining before performance of the work; (b) A rate is established by such agreement or understanding as the basic rate to be used in computing overtime compensation thereunder; (c) The established basic rate is a specified rate or a rate which can be derived from the application of a specified method of calculation; (d) The established basic rate is a bona fide rate and is not less than the minimum hourly rate required by applicable law; (e) The basic rate so established is authorized by § 548.3 or is authorized by the Administrator under § 548.4 as being substantially equivalent to the average hourly earnings of the employee, exclusive of overtime premiums, in the particular work over a representative period of time; (f) Overtime hours are compensated at a rate of not less than one and onehalf times such established basic rate; (g) The hours for which the employee is paid not less than one and onehalf times such established basic rate qualify as overtime hours under section 7(e) (5), (6), or (7) of the Act; (h) The number of hours for which the employee is paid not less than one and one-half times such established basic rate equals or exceeds the number of hours worked by him in any workweek in excess of the maximum workweek applicable to such employees under subsection 7(a) of the Act; (i) The employee's average hourly earnings for the workweek exclusive of payments described in paragraphs (1) through (7) of section 7(e) of the Act are not less than the minimum hourly rate required by this Act or other applicable law; (j) Extra overtime compensation is properly computed and paid on other forms of additional pay which have not been considered in arriving at the basic rate but which are required to be included in computing the regular rate. [20 FR 5679, Aug. 6, 1955, as amended at 26 FR 7731, Aug. 18, 1961] |