[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: 29CFR794.131]

[Page 754-755]
 
                             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. 794.131  ``Customer * * * engaged in bulk distribution''.

    A sale to a customer of an enterprise engaged in the wholesale or 
bulk distribution of petroleum products will be

[[Page 755]]

considered to come within the 25 percent limitation for purposes of the 
exemption under section 7(b)(3) if it is made to a ``customer who is 
engaged in the bulk distribution of such products for resale''. The 
identity of such customers is generally well known in the trade. For 
example, this would generally include other petroleum jobbers, brokers, 
wholesalers, and any others who engaged in the bulk distribution of 
petroleum products for resale. Thus a sale to a petroleum jobber who is 
engaged in selling petroleum products to gasoline stations would clearly 
be a sale to a customer described in section 7(b)(3). The essential 
tests are: first, that the customer must be one who is engaged in the 
distribution of ``such products'', which means petroleum products; 
second, that he must engage in ``the bulk distribution'' of such 
products; and finally, that he must be engaged in such distribution 
``for resale''. These three requirements are discussed in Sec. Sec. 
794.132 through 794.134.