(a) Under the definition related activities performed for a common
business purpose will be a part of the enterprise when they are
performed either through ``unified operation'' or ``common control.'' It
should be noted that these conditions are stated in the alternative.
Thus if it is established that the described activities are performed
through ``common control,'' it is unnecessary to show that they are also
performed through ``unified operation,'' although frequently both
conditions may exist.
(b) Under the definition the terms ``unified operation'' and
``common control'' refer to the performance of the ``related
activities.'' They do not refer to the ownership of the activities.
Although ownership may be a significant factor in determining control
(see Sec. 779.222), the related activities will be a part of the
enterprise even if they are not under common ownership, so long as they
are performed for a common business purpose through unified operation or
common control. Further, under the definition the terms ``unified
operation'' and ``common control'' refer to the performance only of the
particular related activities and not to other activities which may be
performed by the various persons, corporations, or other business
organizations, comprising the enterprise. Thus where two or more
individual or business organizations perform certain of their activities
through unified operation or common control, these activities will be
part of a single enterprise, assuming of course they are related
activities performed for a common business purpose. Finally, the
definition in section 3(r) makes clear that the described activities may
be performed through unified operation or common control ``in one or
more establishments or by one or more corporate or other organizational
units.'' The Senate Report on the 1966 amendments makes the following
comment with respect to this:
Also, the operations through substantial ownership or control of a
number of firms engaged in similar types of business activities
constitute, in the committee's view, related activities performed
through unified operation or common control within the meaning of the
definition of enterprise. The fact the firms are independently
incorporated or physically separate or under the immediate direction of
local management, as in Wirtz v. Hardin, 16 Wage Hour Cases 722 (N.D.
Ala.), is not determinative of this question. (Sen. Rept. No. 1487, 89th
Congress, 2nd session, page 7.)
But where, as in the case of a retail store owned by a partnership and
another store owned by one of the partners providing similar goods or
services, it appears that the activities of the separate stores have no
functional interdependence and that they are separately conducted to
serve the business purpose of the partnership on the one hand and the
business purpose of the individual on the other hand, the requirement of
performance ``through common control'' of ``related activities'' for a
``common business purpose'' may not be sufficiently met.
