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Content Last Revised: 10/22/70
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CFR  

Code of Federal Regulations Pertaining to U.S. Department of Labor

Title 29  

Labor

 

Chapter V  

Wage and Hour Division, Department of Labor

 

 

Part 794  

Partial Overtime Exemption for Employees of Wholesale or Bulk Petroleum Distributors Under Section 7(B)(3) of the Fair Labor Standards Act

 

 

 

Subpart B  

Exemption From Overtime Pay Requirements Under Section 7(b)(3) of the Act


29 CFR 794.116 - ``Independently * * * controlled.''

  • Section Number: 794.116
  • Section Name: ``Independently * * * controlled.''

    As explained in Sec. 794.114, the enterprise in addition to being 
independently owned must also be ``independently controlled.'' The test 
here is whether the individual, partnership, or corporation which owns 
the enterprise also controls the enterprise as an independent 
businessman, free of control by any so-called major oil company or other 
person engaged in the petroleum business. Control by others may be 
evidenced by ownership; but control may exist in the absence of any 
ownership. For example where an enterprise engaged in the wholesale or 
bulk distribution of petroleum products enters into franchise or other 
arrangements which have the effect of restricting the products it 
distributes, the prices it may charge, or otherwise controlling the 
activities of the enterprise in those
respects which are the common attributes of an independent businessman, 
these facts may establish that the enterprise is not ``independently 
controlled'' as required by the exemption under section 7(b)(3). (Wirtz 
v. Lunsford, 404 F. 2d 693 (C.A. 6).)
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