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This definition may
sound complex, so let’s look at two examples on the slide. A corporation may have several large
departments such as finance, legal, marketing, and human resources, each of
which is a customarily recognized department.
But recognized subdivisions also include different areas organized
under the larger departments. Thus, an
exempt executive may manage the compensation, benefits or labor relations
functions within the human resources department. Recognized subdivisions can also be
geographically separate offices or branch establishments. In a sales organization, for example, the
managers in charge of each regional or district office could be exempt.
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