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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 776  

Interpretative Bulletin on the General Coverage of the Wage and Hours Provisions of the Fair Labor Standards Act of 1938

 

 

 

Subpart A  

General


29 CFR 776.9 - General scope of ``in commerce'' coverage.

  • Section Number: 776.9
  • Section Name: General scope of ``in commerce'' coverage.

    Under the definitions quoted above, it is clear that the employees 
who are covered by the wage and hours provisions of the Act as employees 
``engaged in commerce'' are employees doing work involving or related to 
the movement of persons or things (whether tangibles or intangibles, and 
including information and intelligence) ``among the several States or 
between any State and any place outside thereof.'' 23  
Although this does not include employees engaged in activities which 
merely ``affect'' such interstate or foreign commerce, the courts have 
made it clear that coverage of the Act based on engaging in commerce 
extends to every employee employed ``in the channels of'' such commerce 
or in activities so closely related to such commerce, as a practical 
matter, that they should be considered a part of it. 24  The 
courts have indicated that the words ``in commerce'' should not be so 
limited by construction as to defeat the purpose of Congress, but should 
be interpreted in a manner consistent with their practical meaning and 
effect in the particular situation. One practical question to be asked 
is whether, without the particular service, interstate or foreign 
commerce would be impeded, impaired, or abated; 25  others 
are whether the service contributes materially to the consummation of 
transactions in interstate or foreign commerce 26  or makes 
it possible for existing instrumentalities of commerce 27  to 
accomplish the movement of such commerce effectively and to free it from 
burdens or obstructions. 28 
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    23 ``Any place outside thereof'' is not limited in meaning to 
another State or country. Any movement between a State and a place 
``outside thereof'' is ``commerce'' for purposes of the Act, such as 
ship-to-shore communication, or transportation out of a State by ship of 
food, fuel, or ice to be consumed at sea before arrival at another port.
    24 Walling v. Jacksonville Paper Co., 317 U.S. 564; 
Overstreet v. North Shore Corp., 318 U.S. 125; McLeod v. Threlkeld, 319 
U.S. 491; Boutell v. Walling, 327 U.S. 463; Pedersen v. J. F. Fitzgerald 
Constr. Co., 318 U.S. 740 and 324 U.S. 720.
    25 Republic Pictures Corp. v. Kappler, 151 F. 2d 543 
(C.A. 8), affirmed 327 U.S. 757; New Mexico Public Service Co. v. Engel, 
145 F. 2d 636 (C.A. 10).
    26 Walling v. Sondock, 132 F. 2d 77 (C.A. 5), certiorari 
denied 318 U.S. 772. See also Horton v. Wilson & Co., 223 N.C. 71, 25 
S.E. 2d 437, in which the court stated that an employee is engaged ``in 
commerce'' if his services--not too remotely but substantially and 
directly--aid in such commerce as defined in the Act.
    27 For a list of such instrumentalities, see Sec. 776.11.
    28 Overstreet v. North Shore Corp., 318 U.S. 125; J. F. 
Fitzgerald Constr. Co. v. Pedersen, 324 U.S. 720; Ritch v. Puget Sound 
Bridge & Dredging Co., 156 F. 2d 334 (C.A. 9); Walling v. McCrady 
Constr. Co., 156 F. 2d 932 (C.A. 3); Bennett v. V. P. Loftis, 167 F. 2d 
286 (C.A. 4); Walling v. Patton-Tully Transp. Co., 134 F. 2d 945 (C.A. 
6).
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