[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR570.108]

[Page 286-287]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 570_CHILD LABOR REGULATIONS, ORDERS AND STATEMENTS OF INTERPRETATION
--Table of Contents
 
   Subpart G_General Statements of Interpretation of the Child Labor 
     Provisions of the Fair Labor Standards Act of 1938, as Amended
 
Sec. 570.108  ``Produced''.

    The word ``produced'' as used in the Act is defined by section 3(j) 
to mean:

* * * produced, manufactured, mined, handled, or in any other manner 
worked on in any state; * * * \12\

    \12\ The remaining portion of section 3(j) provides: `` * * * and 
for the purposes of this Act an employee shall be deemed to have been 
engaged in the production of goods if such employee was employed in 
producing, manufacturing, mining, handling, transporting, or in any 
other manner working on such goods, or in any closely related process or 
occupation directly essential to the production thereof, in any State.''
---------------------------------------------------------------------------

    (a) The prohibition of section 12(a) cannot apply to a shipment of 
goods unless those goods (including any part or ingredient thereof) were 
actually ``produced'' in and removed from an establishment where 
oppressive child labor was employed. This provision is applicable even 
though the under-age employee does not engage in the production of the 
goods themselves if somewhere in the establishment in or about which he 
is employed goods are ``produced'' which are subsequently shipped or 
delivered for shipment in commerce. In contrast to this restrictive 
requirement of section 12(a), it will be noted that the employees 
covered under the wage and hours provisions as engaged in the production 
of goods for commerce are not limited to those in or about 
establishments where such goods are being produced. If the requisite 
relationship \13\ to production of such goods is present, an employee is

[[Page 287]]

covered for wage and hours purposes regardless of whether his work 
brings him in or near any establishment where the goods are produced. 
\14\
---------------------------------------------------------------------------

    \13\ See footnote 12.
    \14\ See part 776 of this title (interpretative Bulletin on the 
coverage of the wage and hours provisions) issued by the Administrator 
of the Wage and Hour Division. Also, see Sec. Sec. 570.112 and 570.113.
---------------------------------------------------------------------------

    (b) Since the first word in the definition of ``produced'' repeats 
the term being defined, it seems clear that the first word must carry 
the meaning that it has in everyday language. Goods are commonly spoken 
of as ``produced'' if they have been brought into being as a result of 
the application of work. The words ``manufactured'' and ``mined'' in the 
definition refer to special forms of production. The former term is 
generally applied to the products of industry where existing raw 
materials are transformed into new or different articles by the use of 
industrial methods, either by the aid of machinery or by manual 
operations. Mining is a type of productive activity involving the taking 
of materials from the ground, such as coal from a coal mine, oil from 
oil wells, or stone from quarries. The statute also defines the term 
``produced'' to mean ``handled'' or ``in any other manner work on.'' 
\15\ These words relate not only to operations carried on in the course 
of manufacturing, mining, or production as commonly described, but 
include as well all kinds of operations which prepare goods for their 
entry into the stream of commerce, without regard to whether the goods 
are to be further processed or are so-called ``finished goods.'' \16\ 
Accordingly, warehouses, fruit and vegetable packing sheds, distribution 
yards, grain elevators, etc., where goods are sorted, graded, stored, 
packed, labeled or otherwise handled or worked on in preparation for 
their shipment out of the State are producing establishments for 
purposes of section 12(a). \17\ However, the handling or working on 
goods, performed by employees of carriers which accomplishes the 
interstate transit or movement in commerce itself, does not constitute 
production under the Act. \18\
---------------------------------------------------------------------------

    \15\ For a more complete discussion of these words, see Sec. 776.16 
of part 776 (bulletin on coverage of the wage and hours provisions) of 
chapter V of this title.
    \16\ In Western Union Telegraph Co. v. Lenroot, 323 U.S. 490, the 
Supreme Court stated that these words bring within the statutory 
definition ``every step in putting the subject of commerce in a state to 
enter commerce,'' including ``all steps, whether manufacture or not, 
which lead to readiness for putting goods into the stream of commerce'' 
and ``every kind of incidental operation preparatory to putting goods 
into the stream of commerce.''
    \17\ Lenroot v. Kemp and Lenroot v. Hazlehurst Mercantile Co., 153 
F. 2d 153 (C.A. 5), where the court directed issuance of injunctions to 
restrain violations of the child labor provisions by operators of 
vegetable packing sheds at which they bought, then washed, sorted, 
crated, and packed cabbage and tomatoes for shipment in interstate 
commerce.
    \18\ Western Union Telegraph Co. v. Lenroot, 323 U.S. 490.
---------------------------------------------------------------------------