Iowa Administrative Code › Agency 875 - Labor Services Division › Minimum Wage › Chapter 218 - Employees Employed in a Bona Fide Executive, Administrative, or Professional Capacity (INCLUDING ANY EMPLOYEE EMPLOYED IN THE CAPACITY OF ACADEMIC ADMINISTRATIVE PERSONNEL OR TEACHER IN ELEMENTARY OR SECONDARY SCHOOLS) , or in the Capacity of Outside Salesperson › Rule 875-218.205 - Directly Related to Management Policies or General Business Operations

Current through Register Vol. 47, No. 3, July 24, 2024
(1) The phrase
				"directly related to management policies or general business operations of the
				employer or the employer's customers" describes those types of activities
				relating to the administrative operations of a business as distinguished from
				"production" or, in a retail or service establishment, "sales" work. In
				addition to describing the types of activities, the phrase limits the exemption
				to persons who perform work of substantial importance to the management or
				operation of the business of the employer or the employer's
				customers.
(2) The administrative
				operations of the business include the work performed by so-called
				"white-collar" employees engaged in "servicing" a business as, for example,
				advising the management, planning, negotiating, representing the company,
				purchasing, promoting sales, and business research and control. An employee
				performing work is engaged in activities relating to the administrative
				operations of the business notwithstanding that the employee is employed as an
				administrative assistant to an executive in the production department of the
				business.
(3) As used to describe
				work of substantial importance to the management or operation of the business,
				the phrase "directly related to management policies or general business
				operations" is not limited to persons who participate in the formulation of
				management policies or in the operation of the business as a whole. Employees
				whose work is "directly related" to management policies or to general business
				operations include those whose work affects policy or whose responsibility it
				is to execute or carry it out. The phrase also includes a wide variety of
				persons who either carry out major assignments in conducting the operations of
				the business, or whose work affects business operations to a substantial
				degree, even though their assignments are tasks related to the operation of a
				particular segment of the business.
(4) The "management policies or general
				business operations" may be those of the employer or the employer's customers.
				For example, many bona fide administrative employees perform important
				functions as advisers and consultants but are employed by a concern engaged in
				furnishing such services for a fee. Typical instances are tax experts, labor
				relations consultants, financial consultants, systems analysts, or resident
				buyers. Employees, if they meet the other requirements of rule 218.2(91D),
				qualify for exemption regardless of whether the management policies or general
				business operations to which their work is directly related are those of their
				employer's clients or customers or those of their employer.
29 CFR 541.205.