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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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| The Fair Labor Standards Act As Applied to Retailers of Goods or Services |
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| Employment to Which the Act May Apply; Enterprise Coverage |
29 CFR 779.206 - What are ``related activities.''
- Section Number: 779.206
- Section Name: What are ``related activities.''
(a) The Senate Report on the 1961 amendments states as follows, with
respect to the meaning of related activities:
Within the meaning of this term, activities are ``related'' when
they are the same or similar, such as those of the individual retail or
service stores in a chain, or departments of an establishment operated
through leasing arrangements. They are also ``related'' when they are
auxiliary and service activities such as central office and warehousing
activities and bookkeeping, auditing, purchasing, advertising and other
services. Likewise, activities are ``related'' when they are part of a
vertical structure such as the manufacturing, warehousing, and retailing
of a particular product or products under unified operation or common
control for a common business purpose. (Senate Report No. 145, 87th
Cong., 1st Sess., Page 41.)
Thus, activities will be regarded as ``related'' when they are the same
or similar or when they are auxiliary or service activities such as
warehousing, bookkeeping, purchasing, advertising, including, generally,
all activities which are necessary to the operation and maintenance of
the particular business. So also, all activities which are performed as
a part of the unified business operation will be ``related,'' including,
in appropriate cases, the manufacturing, warehousing, and distribution
of its goods, the repair and
maintenance of its equipment, machinery and its premises, and all other
activities which are performed for the common business purpose of the
enterprise. The Senate Report on the 1966 amendments makes it plain that
related, even if somewhat different, business activities can frequently
be part of the same enterprise, and that activities having a reasonable
connection with the major purpose of an enterprise would be considered
related. (Senate Report No. 1487, 89th Cong., 2d Sess., Page 7.) A more
comprehensive discussion of ``related activities'' will be found in part
776 of this chapter.
(b) Generally, the answer to the question whether particular
activities are ``related'' or not, will depend in each case upon whether
the activities serve a business purpose common to all the activities of
the enterprise, or whether they serve a separate and unrelated business
purpose. For example, where a company operates retail or service
establishments, and also engages in a separate and unrelated
construction business, the construction activities will not be
``related'' and will constitute a separate enterprise if they are
conducted independently and apart from the retail operations. Where,
however, the retail and construction activities are conducted for a
common business purpose, they may be ``related,'' and if they are
performed through unified operation or common control, they will be a
part of a single enterprise. Thus, a retail store enterprise may engage
in construction activities as an additional outlet for building
materials which it sells, or otherwise to serve its retail operations.
It may act as its own contractor in constructing or reconstructing its
own stores and related facilities. In such a case, the construction
activities will be ``related'' activities. Other examples may also be
cited. The answer in each case will necessarily depend upon all the
facts.
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