29 CFR § 779.404 - Other section 13(a)(1) employees employed in covered enterprises.

---
identifier: "/us/cfr/t29/s779.404"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "29 CFR § 779.404 - Other section 13(a)(1) employees employed in covered enterprises."
title_number: 29
title_name: "Labor"
section_number: "779.404"
section_name: "Other section 13(a)(1) employees employed in covered enterprises."
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"
---


# 779.404 Other section 13(a)(1) employees employed in covered enterprises.

The “professional” employee or the “outside salesman” employed by a retail or service establishment in a covered enterprise, in order to qualify as a bona fide “professional employee” or as an “outside salesman,” must meet all the requirements set forth in the regulations issued and found in part 541, subpart A of this chapter, and further explained in subpart B thereof. The up-to-40 percent tolerance discussed in § 779.403 for “administrative and executive employees” of a retail or service establishment does not apply to the “professional employee” or the “outside salesman.”