[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: 29CFR794.1] [Page 742-743] TITLE 29--LABOR CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR PART 794_PARTIAL OVERTIME EXEMPTION FOR EMPLOYEES OF WHOLESALE OR BULK Subpart A_General Sec. 794.1 General scope of the Act. PETROLEUM DISTRIBUTORS UNDER SECTION 7(b)(3) OF THE FAIR LABOR STANDARDS ACT--Table of Contents Subpart A_General Sec. 794.1 General scope of the Act. 794.2 Purpose of this part. 794.3 Matters discussed in this part. 794.4 Significance of official interpretations. 794.5 Basic support for interpretations. 794.6 Reliance on interpretations. 794.7 Interpretations made, continued, and superseded by this part. Subpart B_Exemption From Overtime Pay Requirements Under Section 7(b)(3) of the Act Scope and Application in General 794.100 The statutory provision. 794.101 Intended scope of exemption. 794.102 Guides for construing exemptions. 794.103 Dependence of exemption on engagement in described distribution. 794.104 Enterprises engaged in described distribution and in other activities. 794.105 Other requirements for exemption. The ``Enterprise'' 794.106 Statutory definition of ``enterprise.'' 794.107 ``Establishment'' distinguished. 794.108 Scope of enterprise must be known before exemption tests can be applied. 794.109 Statutory basis for inclusion of activities in enterprise. 794.110 Activities excluded from the enterprise by the statute. 794.111 General characteristics of the statutory enterprise. ``Independently Owned and Controlled Local Enterprise'' 794.112 Only independent and local enterprises qualify for exemption. 794.113 The enterprise must be ``local.'' 794.114 The enterprise must be ``independently owned and controlled.'' 794.115 ``Independently owned.'' 794.116 ``Independently * * * controlled.'' 794.117 Effect of franchises and other arrangements. 794.118 Effect of unrelated activities. Annual Gross Volume of Sales 794.119 Dependence of exemption on sales volume of the enterprise. 794.120 Meaning of ``annual gross volume of sales.'' [[Page 743]] 794.121 Exclusion of excise taxes. 794.122 Ascertainment of ``annual'' gross sales volume. 794.123 Method of computing annual volume of sales. 794.124 Computations on a fiscal year basis. 794.125 Grace period of 1 month for compliance. 794.126 Computations for a new business. Sales Made Within the State 794.127 Exemption conditioned on making 75 percent of sales within the State. 794.128 Sales made to out-of-State customers. 794.129 Sales ``made within the State'' not limited to noncovered activity. Sales Made to Other Bulk Distributors 794.130 Not more than 25 percent of sales may be to customers engaged in bulk distribution of petroleum products for resale. 794.131 ``Customer * * * engaged in bulk distribution.'' 794.132 ``Petroleum products.'' 794.133 ``Bulk'' distribution. 794.134 Distribution ``for resale.'' Application of Exemption to Employees 794.135 Employees who are exempt. 794.136 Employees whose activities may qualify them for exemption. 794.137 Effect of activities other than ``wholesale or bulk distribution of petroleum products.'' 794.138 Workweek unit in applying the exemption. 794.139 Exempt and nonexempt activities in the workweek. 794.140 Compensation requirements for a workweek under section 7(b)(3). 794.141 Workweeks when hours worked do not exceed 12 in any day or 56 in the week; compensation requirements. 794.142 Special compensation when overtime in excess of 12 daily or 56 weekly hours is worked in the workweek. 794.143 Work exempt under another section of the Act. Records to be Kept by Employers 794.144 Records to be maintained. Authority: Secs. 1-19, 52 Stat. 1060, as amended; 29 U.S.C. 201-219. Source: 35 FR 16510, Oct. 22, 1970, unless otherwise noted. The Fair Labor Standards Act, as amended, hereinafter referred to as the Act, is a Federal statute of general application which establishes minimum wage, overtime pay, equal pay and child labor requirements that apply as provided in the Act. All employees whose employment has the relationship to interstate or foreign commerce which the Act specifies are subject to the prescribed labor standards unless specifically exempted from them. Employers having such employees are required to comply with the Act's provisions in this regard unless relieved therefrom by some exemption in the Act. Such employers are also required to comply with specified recordkeeping requirements contained in part 516 of this chapter. The law authorizes the Department of Labor to investigate for compliance and, in the event of violations, to supervise the payment of unpaid wages or unpaid overtime compensation owing to any employee. The law also provides for enforcement in the courts.