On November 27, 2006, the U.S. Department of Labor (“DOL”) issued an Opinion Letter wherein it stated that certain “registered representatives” described in the letter “qualify for the administrative exemption.” Attached please find a copy of the DOL’s Opinion Letter.
In the Opinion Letter, the DOL’s opinion was sought on five questions: “(1) whether registered representatives who perform the tasks described above have as their primary duty the performance of work directly related to the management or general business operations of the employer or the employer’s customers within the meaning of the administrative exemption; (2) whether registered representatives whose tasks consist of those described above have as their primary duty the performance of work that requires the exercise of discretion and independent judgment with respect to matters of significance within the meaning of the administrative exemption; (3) whether registered representatives who are compensated with a draw plus commission or fee arrangement as discussed above are paid on a salary basis for purposes of satisfying the minimum salary requirement of the administrative exemption; (4) whether a registered representative who performs the duties and has the responsibilities discussed above satisfies the duties test for the administrative exemption even though he or she is paid on a draw plus commission or fee basis; and (5) whether registered representatives who perform the primary duties discussed above and are compensated as described above satisfy the administrative exemption under both pre-2004 and current regulations.”
The DOL responded in the affirmative to each of the above questions. However, the DOL cautioned that “the applicability of the administrative employee exemption depends not on occupational title, job classification or position description, but rather an individual employee’s duties and salary.” See 29 C.F.R. Section 541.2
Full text of the DOL letter
Keesal, Young & Logan Employment Law Group
