[Code of Federal Regulations]

[Title 29, Volume 3]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 29CFR780.711]



[Page 565-566]

 

                             TITLE 29--LABOR

 

         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR

 

PART 780_EXEMPTIONS APPLICABLE TO AGRICULTURE, PROCESSING OF AGRICULTURAL 

COMMODITIES, AND RELATED SUBJECTS UNDER THE FAIR LABOR STANDARDS ACT--Table 

of Contents

 

     Subpart H_Employment by Small Country Elevators Within Area of 

   Production; Exemption From Overtime Pay Requirements Under Section 

                                13(b)(14)

 

Sec.  780.711  Exemption of mixed business applies only to country 

elevators.



    The language of section 13(b)(14) permitting application of the 

exemption to country elevators selling products and services used in the 

operation of a farm does not extend the exemption to an establishment 

selling products and services to farmers merely because of the fact that 

it is also equipped to provide elevator services to its customers. The 

exemption will not apply if the extent of its business of making sales 

to farmers is such that the establishment is not commonly known as a 

``country elevator'' or is commonly recognized as an establishment of a 

different kind. As the legislative history of the exemption indicates, 

its purpose is limited to exempting country elevators that market farm 

products, mostly grain, for farmers who are working long workweeks and 

need to have the elevator facilities open and available for disposal



[[Page 566]]



of their crops during the same hours that are worked by the farmers. 

(See 107 Cong. Rec. (daily ed.) p.5883.) The reason for the exemption 

does not justify its application to employees selling products and 

services to farmers otherwise than as an incidental and subordinate part 

of the business of a country elevator as commonly recognized. An 

establishment making such sales must be ``such an establishment'' to 

come within this exemption. An employer may, however, be engaged in the 

business of making sales of goods and services to farmers in an 

establishment separate from the one in which he provides the recognized 

country elevator services. In such event, the exemption of employees who 

work in both establishments may depend on whether the work in the sales 

establishment comes within another exemption provided by the Act. (See 

Remington v. Shaw (W.D. Mich.), 2 WH Cases 262, and infra, Sec.  

780.724.)



              Employment of ``No More Than Five Employees''