29 CFR § 779.403 - Administrative and executive employees in covered enterprises employed in other than retail or service establishments.

---
identifier: "/us/cfr/t29/s779.403"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "29 CFR § 779.403 - Administrative and executive employees in covered enterprises employed in other than retail or service establishments."
title_number: 29
title_name: "Labor"
section_number: "779.403"
section_name: "Administrative and executive employees in covered enterprises employed in other than retail or service establishments."
chapter_name: "WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR"
subchapter_number: "B"
subchapter_name: "STATEMENTS OF GENERAL POLICY OR INTERPRETATION NOT DIRECTLY RELATED TO REGULATIONS"
part_number: "779"
part_name: "THE FAIR LABOR STANDARDS ACT AS APPLIED TO RETAILERS OF GOODS OR SERVICES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Secs. 1-19, 52 Stat. 1060, as amended; 75 Stat. 65; Sec. 29(B), Pub. L. 93-259, 88 Stat. 55; 29 U.S.C. 201-219."
regulatory_source: "35 FR 5856, Apr. 9, 1970, unless otherwise noted."
cfr_part: "779"
---


# 779.403 Administrative and executive employees in covered enterprises employed in other than retail or service establishments.

The up-to-40 percent tolerance for nonexecutive or nonadministrative duties discussed in the preceding section, does not apply to executive or administrative employees of an establishment other than a “retail or service establishment.” For example, an executive or administrative employee of a central office or a central warehouse of a chain store system is not an employee of a “retail or service establishment,” and therefore must still devote not more than 20 percent of his hours worked in a workweek to activities which are not directly and closely related to the performance of executive or administrative duties in order to qualify as a bona fide executive or administrative employee under section 13(a)(1), except where special provisions are made in the regulations issued under that section of the Act.