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CFR  

Code of Federal Regulations Pertaining to ESA

Title 29  

Labor

 

Chapter V  

Wage and Hour Division, Department of Labor

 

 

Part 776  

Interpretative Bulletin on the General Coverage of the Wage and Hours Provisions of the Fair Labor Standards Act of 1938

 

 

 

Subpart A  

General


29 CFR 776.2 - Employee basis of coverage.

  • Section Number: 776.2
  • Section Name: Employee basis of coverage.

    (a) The coverage of the Act's wage and hours provisions as described 
in sections 6 and 7 does not deal in a blanket way with industries as a 
whole. Thus, in section 6, it is provided that every employer shall pay 
the statutory
minimum wage to ``each of his employees who is engaged in commerce or in 
the production of goods for commerce.'' It thus becomes primarily an 
individual matter as to the nature of the employment of the particular 
employee. Some employers in a given industry may have no employees 
covered by the Act; other employers in the industry may have some 
employees covered by the Act, and not others; still other employers in 
the industry may have all their employees within the Act's coverage. If, 
after considering all relevant factors, employees are found to be 
engaged in covered work, their employer cannot avoid his obligations to 
them under the Act on the ground that he is not ``engaged in commerce or 
in the production of goods for commerce.'' To the extent that his 
employees are so engaged, he is himself so engaged. 9
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    9 Kirschbaum v. Walling, 316 U.S. 517. See also Walling v. 
Jacksonville Paper Co., 317 U.S. 564; McLeod v. Threlkeld, 319 U.S. 491; 
Mabee v. White Plains Pub. Co., 327 U.S. 178.
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    (b) In determining whether an individual employee is within the 
coverage of the wage and hours provisions, however, the relationship of 
an employer's business to commerce or to the production of goods for 
commerce may sometimes be an important indication of the character of 
the employee's work. 10  It is apparent, too, from the 1949 
amendment to the definition of ``produced'' and its legislative history 
that an examination of the character of the employer's business will in 
some borderline situations be necessary in determining whether the 
employees' occupation bears the requisite close relationship to 
production for commerce. 11 
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    10 Borden Co. v. Borella, 325 U.S. 679; 10 E. 40th St. Bldg. 
Co. v. Callus, 325 U.S. 578; Armour & Co. v. Wantock, 323 U.S. 126; 
Donovan v. Shell Oil Co., 168 F. 2d 229 (C.A. 4); Hertz Driveurself 
Stations v. United States, 150 F. 2d 923 (C.A. 8); Horton v. Wilson & 
Co., 223 N.C. 71, 25 S.E. 2d 437.
    11 H. Mgrs. St., 1949, pp. 14, 15; Sen. St. 1949 Cong. 
Rec. 15372.
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