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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 779  

The Fair Labor Standards Act As Applied to Retailers of Goods or Services

 

 

 

Subpart C  

Employment to Which the Act May Apply; Enterprise Coverage


29 CFR 779.245 - Conditions for coverage of retail or service enterprises.

  • Section Number: 779.245
  • Section Name: Conditions for coverage of retail or service enterprises.

    (a) Retail or service enterprises may be covered under section 
3(s)(1) of the prior Act or section 3(s)(1) of the amended Act although 
the latter is not limited to retail or service enterprises. A retail or 
service enterprise will be a covered enterprise under section 3(s)(1) of 
the amended Act if both the following conditions are met:
    (1) The enterprise is ``an enterprise engaged in commerce or in the 
production of goods for commerce.'' This requirement, which is discussed 
in Secs. 779.237 through 779.243, applies to all covered enterprises 
under the provisions of both the prior and the amended Act; and,
    (2) During the period February 1, 1967, through January 31, 1969, 
the enterprise has an annual gross volume of sales made or business 
done, exclusive of excise taxes at the retail level which are separately 
stated, of at least $500,000; or on and after February 1, 1969, the 
enterprise has an annual gross volume of sales made or business done of 
at least $250,000, exclusive of excise taxes at the retail level which 
are separately stated.
    (b) A retail or service enterprise will be covered under section 
3(s)(1) of the Act prior to the amendments if all four of the following 
conditions are met:
    (1) The enterprise is ``an enterprise engaged in commerce or in the 
production of goods for commerce'' as explained above in paragraph 
(a)(1) of this section and,
    (2) The enterprise has one or more ``retail or service 
establishments'' (the statutory definition of the term ``retail or 
service establishment'' is contained in Sec. 779.24 and discussed in 
subpart D of this part) and,
    (3) The enterprise has an annual gross volume of sales of $1 million 
or more, exclusive of excise taxes at the retail level which are 
separately stated and,
    (4) The enterprise ``purchases or receives goods for resale that 
move or have moved across State lines (not in deliveries from the 
reselling establishment) which amount in total annual volume to $250,000 
or more.'' (This requirement is discussed in Secs. 779.246 through 
779.253.)
    (c) Sections 779.258 through 779.260 discuss the meaning of ``annual 
gross volume of sales made or business done'' and Secs. 779.261 through 
779.264 discuss what excise taxes may be excluded from the annual gross 
volume. Sections 779.265 through 779.269 discuss the method of computing 
the annual gross volume where it is necessary to determine monetary 
obligations to employees under the Act.
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