[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: 29CFR776.28]

[Page 396]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 776_INTERPRETATIVE BULLETIN ON THE GENERAL COVERAGE OF THE WAGE AND 
HOURS PROVISIONS OF THE FAIR LABOR STANDARDS ACT OF 1938--Table of Contents
 
                     Subpart B_Construction Industry
 
Sec. 776.28  Covered preparatory activities.

    (a) Before production begins. (1) The United States Supreme Court 
has held that the Act is applicable to employees of a company which was 
engaged in preliminary oil well drilling, even though the holes were 
drilled to a specified depth which was short of where the oil was 
expected to be found. \26\ The Act would also apply to drilling 
operations even though no oil was discovered. \27\ Laborers employed in 
erecting drilling rigs would also be covered. \28\ Other preparatory 
work before drilling begins in an oil field, such as staking oil claims, 
surveying, clearing the land, assembling materials and equipment, 
erecting sheds, derricks or dikes would also be within the scope of the 
Act. \29\ Preliminary work such as the foregoing has the requisite close 
and immediate tie with the production of goods for commerce to be within 
the coverage of the Act.
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    \26\ Warren-Bradshaw Drilling Co. v. Hall, 317 U.S. 8.
    \27\ Culver v. Bell & Loffland, 146 F. (2d) 20.
    \28\ Devine v. Levy, 39 F. Supp. 44.
    \29\ Straughn v. Schlumberger Well Surveying Corp., 72 F. Supp. 511.
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    (2) Similarly, coverage extends to employees engaged in the 
installation of machinery to be used in covered production in a new 
factory building, even though the construction of the building itself 
may not have been subject to the Act. Such installation is considered to 
be a preliminary production activity rather than simply part of the 
construction of the building.
    (3) If the construction project is subject to the Act, preliminary 
activities, such as surveying, clearing, draining and leveling the land, 
erecting necessary buildings to house materials and equipment, or the 
demolition of structures in order to begin building the covered 
facility, are subject to the Act. \30\
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    \30\ Coverage of preparation of plans and designs is discussed in 
Sec. 776.19(b) (2).
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    (b) Facilities used in aid of the covered construction. The 
installation of facilities, and the repair and maintenance of trucks, 
tools, machinery and other equipment to be used by a contractor in the 
furtherance of his covered construction work, are activities subject to 
the Act.