[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: 29CFR794.126]

[Page 753]
 
                             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. 794.126  Computations for a new business.

    When a new business is commenced the employer will necessarily be 
unable for a time to determine its annual dollar volume on the basis of 
a full 12-month period as described in Sec. Sec. 794.123 and 794.124. 
In many cases, it is readily apparent that the enterprise will or will 
not have the requisite annual dollar volume specified in the Act. For 
example, the new business may be so large that it is clear from the 
outset that the business will exceed the $1 million test of the 
exemption. In other cases, where doubt exists, the gross receipts of the 
new business during the first quarter year in which it has been in 
operation will be taken as representative of its annual dollar volume 
tests for purposes of determining its status under section 7(b)(3) of 
the Act in workweeks falling in the following quarter-year period. 
Similarly, for purposes of determining its status under the Act in 
workweeks falling within ensuing quarter-year periods, the gross 
receipts of the new business for the completed quarter-year periods will 
be taken as representative of its annual dollar volume in applying the 
annual volume tests of the Act. After the new business has been in 
operation for a full calendar or fiscal year, the analysis can be made 
by the methods described in Sec. Sec. 794.123 and 794.124.

                       Sales Made Within the State