[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: 29CFR776.26]

[Page 349]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 776_INTERPRETATIVE BULLETIN ON THE GENERAL COVERAGE OF THE WAGE 
 
                     Subpart B_Construction Industry
 
Sec. 776.26  Relationship of the construction work to the covered 
facility.

    Unless the construction work is physically or functionally 
integrated or closely identified with an existing covered facility it is 
not regarded as covered construction because it is not closely enough 
related to or integrated with the production of goods for commerce or 
the engagement in commerce. For this reason the erection, maintenance or 
repair of dwellings, apartments, hotels, churches and schools are not 
covered projects. \15\ Similarly the construction of a separate, wholly 
new, factory building, not constructed as an integral part or as an 
improvement of an existing covered production plant, is not covered (Cf. 
Sec. 776.27(c)). Coverage of any construction work, whether new or 
repair work, depends upon how closely integrated it is with, and how 
essential it is to the functioning of, existing covered facilities. 
Neither the mere fact that the construction is ``new construction'' nor 
the fact that it is physically separated from an existing covered plant, 
is determinative. Moreover, the court decisions make it clear that the 
construction project itself need not be actually employed in commerce or 
in the production of goods for commerce during the time of its 
construction in order to be covered. \16\ Such factors may be considered 
in determining whether as a practical matter the work is directly and 
vitally related to the functioning of the covered facility but would not 
be decisive.
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    \15\ Cf. Sec. 776.18(b).
    \16\ Mitchell v. Vollmer, ante; Bennett v. V. P. Loftis Co., ante; 
Mitchell v. Chambers Const. Co., 214 F. (2d) 515 (C.A. 10); Walling v. 
McCrady Const. Co., ante; Tobin v. Pennington-Winter Const. Co., 198 F. 
(2d) 334 (C.A. 5), certiorari denied, 345 U.S. 915.
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