[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: 29CFR779.204]

[Page 430-431]
 
                             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 C_Employment to Which the Act May Apply; Enterprise Coverage
 
Sec. 779.204  Common types of ``enterprise.''

    (a) The single establishment business. In the simplest type of 
organization--the entire business ordinarily is one enterprise. The 
entire business activity of the single owner-employer may be performed 
in one establishment, as in the typical independently owned and 
controlled retail store. In that case the establishment and the 
enterprise are one and the same. All of the activities of the store are 
``related'' and are performed for a single business purpose and there is 
both unified operation and common control. The entire business is the 
unit for applying the statutory tests. If the coverage tests are met, 
all of the employees employed by the establishment are employed in the 
enterprise and will be entitled to the benefits of the Act unless 
otherwise exempt.
    (b) The multiunit business. In many cases, as in the typical chain 
of retail stores, one company conducts its single business in a number 
of establishments. All of the activities ordinarily are related and 
performed for one business purpose, the single company which owns the 
chain also controls the entire business, and the entire business

[[Page 431]]

is a single enterprise. The dollar volume of the entire business from 
all of its establishments is added together to determine whether the 
requisite dollar volume tests are met. If the coverage tests are met, 
all of the employees employed in the business will be entitled to the 
benefits of the Act unless otherwise exempt.
    (c) Complex business organizations. In complex retail and service 
organizations, questions may arise as to whether certain activities are 
a part of a particular enterprise. In some cases one employer may 
operate several separate enterprises; in others, several employers may 
conduct their business activities in such a manner that they are part of 
a single enterprise. The answer, in each case, as to whether or not the 
``enterprise'' includes certain activities will depend upon whether the 
particular activities are ``related'' to the business purpose of such 
enterprise and whether they are performed with its other activities 
through ``unified operation'' or ``common control,'' or whether, on the 
other hand, they are performed for a separate and distinct business 
purpose. As the Senate Report states,

    related activities conducted by separate business entities will be 
considered a part of the same enterprise where they are joined either 
through unified operation or common control into a unified business 
system or economic unit to serve a common business purpose.

(S. Rept. 145, 87th Cong., 1st Sess., p. 41; see also H. Rept. 1366, 
89th Cong., 2d Sess., p. 9.) Sec. Sec. 779.205 through 779.211 discuss 
the terms of the definition and may aid in making these determinations.

                           Related Activities