[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: 29CFR794.130]

[Page 710]
 
                             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. 794.130  Not more than 25 percent of sales may be to customers 
engaged in bulk distribution of petroleum products for resale.

    As a further requirement for exemption, section 7(b)(3) limits to 
not more than 25 percent (measured by annual dollar volume) the sales 
which an enterprise engaged in the wholesale or bulk distribution of 
petroleum products may make to customers who are engaged in the bulk 
distribution of such products for resale. It should be noted that this 
limitation does not depend on whether the goods sold by the enterprise 
to such customers are sold by it for resale, or on whether the goods 
sold to such customers are petroleum products. It is whether the 
customer is engaged in selling petroleum products for resale that is 
controlling. A sale of any goods must be included in this 25 percent 
limitation so long as it is made to a customer who, as described in 
section 7(b)(3), can be characterized as one ``engaged in the bulk 
distribution of such products for resale''. It should be also noted that 
this provision does not in any way limit the sales which the enterprise 
may make to customers who are not engaged in the bulk distribution of 
petroleum products for resale. Thus, there is no limitation on the sales 
the enterprise may make to gasoline service stations which sell such 
products for resale but do no engage in the ``bulk distribution'' of the 
products so sold, or to any other customers except those specified in 
the exemption in section 7(b)(3). Who is a ``customer engaged in the 
bulk distribution of such products for resale'' is discussed in 
Sec. Sec. 794.131--794.133.