[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: 29CFR794.115]

[Page 750-751]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 794_PARTIAL OVERTIME EXEMPTION FOR EMPLOYEES OF WHOLESALE OR BULK 
 
Subpart B_Exemption From Overtime Pay Requirements Under Section 7(b)(3) 
                               of the Act
 
Sec. 794.115  ``Independently owned.''

    Ownership of the enterprise may be vested in an individual petroleum 
jobber, or a partnership, or a corporation, so long as such ownership is 
not shared by a major oil company, or other producer, refiner, 
distributor or supplier of petroleum products, so as to affect the 
independent ownership of the enterprise. As noted in Sec. 794.114, an 
enterprise will not be considered independently owned where it does not 
own its own office, bulk storage, and delivery facilities. The 
enterprise may also not be considered ``independently owned'' where it 
does not own its stock-in-trade. (See Wirtz v. Lunsford, 404 F.2d 693 
(C.A. 6).) It is recognized that, in the ordinary course of business 
dealings, an independently owned enterprise may purchase its goods on 
credit and this, of course, will not affect its characterization as 
being T`TT`TindependentlyT ownedT'TT'T within the meaning of the 
exemption. However, there may well be a question as to whether the 
enterprise is T`TT`TindependentlyT ownedT'TT'T where the enterprise 
receives its petroleum products on consignment and the supplier lays 
claim to the ownership of the account receivable. Of possible relevance

[[Page 751]]

also is the intent evident in the statutory language to provide 
exemption only for an enterprise which can meet the specified tests 
which depend on ``the sales of such enterprise.'' The determination in 
such cases, as in other cases involving questions of independent 
ownership, will necessarily depend on all the facts.