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 in Secs. 794.123 and 794.124. In
many cases, it is readily apparent that the enterprise will or will not
have the requisite annual dollar volume specified in the Act. For
example, the new business may be so large that it is clear from the
outset that the business will exceed the $1 million test of the
exemption. 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
tests for purposes of determining its status under section 7(b)(3) of
the Act in workweeks falling in the following quarter-year period.
Similarly, for purposes of determining its status 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 methods described in Secs. 794.123 and 794.124.
