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Code of Federal Regulations Pertaining to ESA |
| Labor |
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| Wage and Hour Division, Department of Labor |
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| Exemptions Applicable to Agriculture, Processing of Agricultural Commodities, and Related Subjects Under the Fair Labor Standards Act |
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| Employment by Small Country Elevators Within Area of Production; Exemption From Overtime Pay Requirements Under Section 13(b)(14) |
29 CFR 780.720 - ``Area of production'' requirement of exemption.
- Section Number: 780.720
- Section Name: ``Area of production'' requirement of exemption.
(a) In addition to the requirements for exemption previously
discussed, section 13(b)(14) requires that the employee employed by an
establishment commonly recognized as a country elevator be ``employed
within the area of production (as defined by the Secretary).''
Regulations defining employment within the ``area of production'' for
purposes of section 13(b)(14) are contained in part 536 of this chapter.
All the requirements of the applicable regulations must be met in order
for the exemption to apply.
(b) Under the regulations, an employee is considered to be employed
within ``the area of production'' within the meaning of section
13(b)(14) if the country elevator establishment by which he is employed
is located in the ``open country or a rural community,'' as defined in
the regulations, and receives 95 percent or more of the agricultural
commodities handled through its elevator services from normal rural
sources of supply within specified distances from the country elevator.
A definition of ``area of production'' in terms of such criteria has
been upheld by the U.S. Supreme Court in Mitchell v. Budd, 350 U.S. 473.
Reference should be made to part 536 of this chapter for the precise
requirements of the definition.
(c) However, it is appropriate to point out here that nothing in the
definition places limits on the distance from which commodities come to
the elevator for purposes other than the storage of marketing of farm
products. The commodities, 95 percent of which are required by
definition to come from specified distances, are those agriculural
commodities received by the elevator with respect to which it performs
the primary concentration, storage, and marketing functions of a country
elevator as previously explained (see Sec. 780.708). This is consistent
with the emphasis given, in the legislative history, to the country
elevator's function of marketing farm products, mostly grain, for
farmers (see 107 Cong. Rec. (daily ed.) p. 5883). Commodities brought or
shipped to a country elevator establishment not for storage or for
market but in connection with its secondary, incidental, or side-line
functions of selling products and services used in the operation of a
farm (see Sec. 780.610) are not required to be counted in determining
whether 95 percent of the agricultural commodities handled come from
rural sources of supply within the specified distances.
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