Exhibit 1-1 Mabel Jones Mrs. Mabel Jones is the most senior employee in the office of Olympia Electrical Manufacturing Company. Mabel has worked for Olympia for 25 years, and her job title is Office Manager. There are six other clerks in the office. She has trained all six of them and, when they have a problem, they usually come to her for advice or assistance. Management recognizes her as a good and faithful employee.

Mabel's husband Ed, who works on the other side of town, drops her off at work around 7:25 each morning. Since she is usually the first office person to arrive, her daily routine begins by making the first pot of coffee for the office staff. While the coffee is brewing, Mabel sorts the mail and places it in the appropriate employee's in basket or mail box. (The Production Manager, who arrives even earlier, picks up the mail at the post office on his way to work each morning and, on arriving at Olympia, he places it on Mabels desk before 7:00 a.m.) After sorting the mail, Mabel sits down and enjoys her first cup of coffee. While having her coffee, she reviews her incoming mail, looking especially for checks from customers who have been late in paying their bills.

In addition to receiving $795 per week, Mabel earns $1,250 in commissions during a quarter (3 months) and is paid that amount at the end of the quarter for late collections that her telephone calls have helped to bring in. Many years ago, Olympia turned over to a collection agency all unpaid bills over 90 days in arrears. Mabel had mentioned to her boss that she thought she could help collect the money because, over the years, she had become familiar with many of their customers and had a good working relationship with them. They would talk to her about their problems with Olympia, and she was often able to assist them.

Mabel proved to be very successful in this assignment, so management decided to quit using the collection agency and instead pay Mabel a commission for all late payments she collected. The commission she receives amounts to about half of that paid to the collection agency. During a normal work day, Mabel spends about 40% of her time posting to a number of different ledgers. She also spends between 5 and 10% of her time in conferences with higher levels of management. Seldom does a day go by that she isnt providing guidance or training to one of the six clerk-secretaries in the office.

The remainder of her time is spent on the telephone responding to client inquiries regarding shipping dates, quality issues, and other similar problems. Although she quite often cannot give the customer the desired answer, she is able to transfer the call to the individual who can provide the necessary information. If a customer isnt happy with the answers, he or she often checks back with Mabel who then attempts to obtain a better answer for the customer. When not talking on customer-originated calls, Mabel performs her collection calls. She keeps a detailed diary of each past-due customer, noting the date and time of the conversation, what was said, and to whom she spoke. She quite often makes some of her collection calls while she eats lunch. All office people know they have an hour for lunch, and four of the ladies usually go off the premises each day, while tow usually spend their hour in the company cafeteria. Mabel is a

brown-bagger, and eats her lunch at her desk. If no one else is in the office, she answers all incoming calls in addition to making some of her collection calls. The office closes at 5:00 p.m., and all of the office help is usually gone by 5:02, if not a few minutes before 5:00. Mabels husband, however, does not get off work until 5:30 p.m., and he doesnt arrive to pick her up until shortly after 6:00 p.m. During the time from 5:00 to 6:00, Mabel makes more collection calls, and at that time is frequently able to contact some of those with late payment problems who she couldnt contact earlier in the day.

QUESTION 1

Read the "Report on Mabel Jones" (Exhibit 1-1) attached above

Determine what the exemption status is for Mabel Jones.