[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: 29CFR779.118]

[Page 429]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 779_THE FAIR LABOR STANDARDS ACT AS APPLIED TO RETAILERS OF GOODS 
OR SERVICES--Table of Contents
 
 Subpart B_Employment to Which the Act May Apply: Basic Principles and 
                           Individual Coverage
 
Sec. 779.118  Employees providing central services for multi-unit 
organizations.

    Employees providing central services for a multiunit organization 
may be engaged both ``in commerce'' and ``in the production of goods for 
commerce'' within the meaning of the Act. For example, employees engaged 
in work relating to the coordinated purchasing, warehousing and 
distribution (and in the administrative and clerical work relating to 
such activities) for various retail units of a chain are covered under 
the Act. (See Phillips Co. v. Walling, 324 U.S. 490; Walling v. 
Jacksonville Paper Co., 317 U.S. 564, affirming, 128 F. 2d 935 (CA-5); 
Mitchell v. C. & P. Stores, 286 F. 2d 109 (CA-5); Mitchell v. E. G. 
Shinner & Co., Inc., 221 F. 2d 260 (CA-7); Donovan v. Shell Oil Co., 168 
F. 2d 776 (CA-8).) In addition, employees who regularly and recurrently 
correspond and maintain records of activities of out-of-State stores and 
such employees as traveling auditors, inventory men, window display men, 
etc., who regularly travel from State to State in the performance of 
their duties are covered under the Act. (See Mitchell v. Kroger Co., 248 
F. 2d 935 (CA-8).)