[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR536.1]

[Page 175]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 536_AREA OF PRODUCTION--Table of Contents
 
Sec. 536.1  ``Area of production'' as used in section 7(c) of the Fair 
Labor Standards Act.




Sec.
536.1 ``Area of production'' as used in section 7(c) of the Fair Labor 
          Standards Act.
536.2 ``Area of production'' as used in section 13(a)(10) of the Fair 
          Labor Standards Act.
536.3 ``Area of production'' as used in section 13(a)(17) of the Fair 
          Labor Standards Act.
536.4 Petition for amendment of regulations.

    Authority: 52 Stat. 1060; 29 U.S.C. 201 et seq, unless otherwise 
noted.

    Source: 27 FR 400, Jan. 13, 1962, unless otherwise noted.


    (a) An employer shall be regarded as engaged in the first processing 
of any agricultural or horticultural commodity during seasonal 
operations within the ``area of production'' within the meaning of 
section 7(c) of the Fair Labor Standards Act if he is so engaged in an 
establishment which is located in the open country or in a rural 
community and in which such first processing is performed on commodities 
95 percent of which come from normal rural sources of supply located not 
more than the following airline distances from the establishment:
    (1) With respect to grain, soybeans, eggs, or tobacco--50 miles;
    (2) With respect to any other agricultural or horticultural 
commodities--20 miles.
    (b) For the purpose of this section:
    (1) ``Open the country or rural community'' shall not include any 
city, town, or urban place of 2,500 or greater population or any area 
within:
    (i) One air-line mile of any city, town, or urban place with a 
population of 2,500 up to but not including 50,000, or
    (ii) Three air-line miles of any city, town, or urban place with a 
population of 50,000 up to but not including 500,000, or
    (iii) Five air-line miles of any city with a population of 500,000 
or greater, according to the latest available United States Census.
    (2) The commodities shall be considered to come from ``normal rural 
sources of supply'' within the specified distances from the 
establishment if they are received: (i) From farms within such specified 
distances, or (ii) from farm assemblers or other establishments through 
which the commodity customarily moves, which are within such specified 
distances and located in the open country or in a rural community, or 
(iii) from farm assemblers or other establishments not located in the 
open country or in a rural community provided it can be demonstrated 
that the commodities were produced on farms within such specified 
distances.
    (3) The period for determining whether 95 percent of the 
agricultural or horticultural commodities are received from normal rural 
sources of supply shall be the last preceding calendar month in which 
operations were carried on for two workweeks or more, except that until 
such time as an establishment has operated for such a calendar month the 
period shall be the time during which it has been in operation.
    (4) The percentage of commodities received from normal rural sources 
of supply within the specified distances shall be determined by weight, 
volume or other physical unit of measure, except that dollar value shall 
be used if different commodities received in the establishment are 
customarily measured in physical units that are not comparable.

(Sec. 7(c), 52 Stat. 1063, 29 U.S.C. 207 (c))