Administrative exemption criteria.

CFR · 2024-01-01 · US · Title 5

An (a) In general, the exercise of discretion and independent judgment involves the comparison and the evaluation of possible courses of conduct, and acting or making a decision after the various possibilities have been considered. The term “matters of significance” refers to the level of importance or consequence of the work performed. (b) The phrase (1) Has authority to formulate, affect, interpret, or implement management policies or operating practices; (2) Carries out major assignments in conducting the operations of the organization; (3) Performs work that affects the organization's operations to a substantial degree, even if the employee's assignments are related to operation of a particular segment of the organization; (4) Has authority to commit the employer in matters that have significant financial impact; (5) Has authority to waive or deviate from established policies and procedures without prior approval; (6) Has authority to negotiate and bind the organization on significant matters; (7) Provides consultation or expert advice to management; (8) Is involved in planning long- or short-term organizational objectives; (9) Investigates and resolves matters of significance on behalf of management; and (10) Represents the organization in handling complaints, arbitrating disputes, or resolving grievances. (c) The exercise of discretion and independent judgment implies that the employee has authority to make an independent choice, free from immediate direction or supervi

official document · source cfr-2024 · id 5:§ 551.206