[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: 29CFR794.140]

[Page 713]
 
                             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. 794.140  Compensation requirements for a workweek under section 
7(b)(3).

    (a) Exemption of an employee in any workweek under section 7(b)(3) 
is expressly conditioned on and limited by the special compensation 
provisions which it contains. These are set forth in full text in Sec. 
794.100. They require payment to the employee of compensation at 
specified rates for certain periods within the workweek when such 
periods are included in his hours of work. Their application requires an 
increase of at least 50 percent in the minimum wage rate otherwise 
applicable to the employee in such workweek ``for employment in excess 
of forty hours'' and, in addition, if such employment is ``in excess of 
twelve hours in any workday, or * * * in excess of fifty-six hours in 
any workweek, as the case may be,'' the employee must be paid overtime 
compensation ``at a rate not less than one and one-half times the 
regular rate at which he is employed'' for all hours worked in the 
workweek in excess of the specified daily standard or in excess of the 
specified weekly standard, whichever is the greater number of overtime 
hours. The sections following discuss separately the application of 
these provisions to workweeks when the employee's hours of work do not 
exceed the daily or weekly standard specified in section 7(b)(3), and to 
workweeks when hours in excess of the daily or the weekly standard are 
worked.
    (b) The special compensation requirements of section 7(b)(3) apply 
to an employee otherwise eligible for the exemption whenever he works 
more than 40 hours in a workweek for an enterprise described in and 
operating under this subsection. In any workweek in which the employee 
does not work more than 40 hours for his employer only the minimum wage 
requirements of section 6 are applicable. This is because section 
7(b)(3) operates only as an exemption from the requirement of section 
7(a) that compensation at a rate not less than one and one-half times 
the employee's regular rate must be paid for all hours worked by him in 
excess of 40 in the workweek. (This general 40-hour workweek standard 
has been applicable since Feb. 1, 1969, to all employment within the 
general coverage of the Act, regardless of whether any overtime pay 
requirements were previously applicable to such employment before the 
provisions added by the Fair Labor Standards Amendments of 1966 became 
effective.)