When a new business is commenced the employer will necessarily be
unable for a time to determine its annual dollar volume on the basis of
a full 12-month period as described above. In many cases it is readily
apparent that the enterprise or establishment will or will not have the
requisite annual dollar volume specified in the Act. For example, where
the new business consists of a large department store, or a supermarket,
it may be clear from the outset that the business will meet the annual
dollar volume tests so as to be subject to the requirements of the Act.
In other cases, where doubt exists, the gross receipts of the new
business during the first quarter year in which it has been in operation
will be taken as representative of its annual dollar volume, in applying
the annual volume tests of sections 3(s) and 13(a)(2), for purposes of
determining its obligations under the Act in workweeks falling in the
following quarter year period. Similarly, for purposes of determining
its obligations under the Act in workweeks falling within ensuing
quarter year periods, the gross receipts of the new business for the
completed quarter year periods will be taken as representative of its
annual dollar volume in applying the annual volume tests of the Act.
After the new business has been in operation for a full calendar or
fiscal year, the analysis can be made by the method described in
paragraph (b) of Sec. 779.266 with use of the grace period described in
Sec. 779.268, if necessary.
