[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: 29CFR794.137]

[Page 756]
 
                             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. 794.137  Effect of activities other than ``wholesale or bulk 
distribution of petroleum products.''

    As previously noted, in some cases the related activities performed 
through unified operation or common control for a common business 
purpose which are included in the enterprise under the definition in 
section 3(r) of the Act may include activities other than the wholesale 
or bulk distribution of petroleum products. Examples are tire recapping 
or gasoline station services, the sale and servicing of oil burners, or 
the distribution of coal, ice, feed, building supplies, paint, etc. In 
some instances, as in the case of oil-burner servicing, these other 
activities are customarily performed as an incident to or in conjunction 
with the wholesale or bulk distribution of petroleum products in the 
enterprises of the industry engaged in such distribution. As indicated 
in Sec. 794.104, employees of the enterprise who engage in such 
activities are within the general scope of the exemption. However, 
activities which are not customary practices of enterprises in the 
industry of wholesale or bulk distribution of petroleum products are not 
within the scope of the intent of the section 7(b)(3) exemption. For 
example, construction activities, operation of a sporting goods store, 
scrap paper and metal activities, the operation of a general repair 
garage, etc., are not the type of activities for which the section 
7(b)(3) exemption was intended. Thus, where an enterprise engaged in the 
wholesale or bulk distribution of petroleum products operates a general 
repair garage, a mechanic servicing the automobiles and trucks brought 
to the garage by customers will not for that reason be within the 
exemption provided by section 7(b)(3), although the exemption provided 
by section 13(a)(2) may apply to him if the garage qualifies as an 
exempt retail or service establishment under the tests provided in that 
section of the Act. On the other hand, mechanics employed by an 
enterprise engaged in the wholesale or bulk distribution of petroleum 
products for the purpose of keeping the distribution equipment of the 
enterprise in good repair would come within the 7(b)(3) exemption.