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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 779  

The Fair Labor Standards Act As Applied to Retailers of Goods or Services

 

 

 

Subpart A  

General


29 CFR 779.21 - Enterprise.

  • Section Number: 779.21
  • Section Name: Enterprise.

    (a) Section 3(r) of the Act provides, in pertinent part that 
``enterprise'' as used in the Act:

    means the related activities performed (either through unified 
operation or common control) by any person or persons for a common 
business purpose, and includes all such activities whether performed in 
one or more
establishments or by one or more corporate or other organizational units 
including departments of an establishment operated through leasing 
arrangements, but shall not include the related activities performed for 
such enterprise by an independent contractor: Provided, That, within the 
meaning of this subsection, a retail or service establishment which is 
under independent ownership shall not be deemed to be so operated or 
controlled as to be other than a separate and distinct enterprise by 
reason of any arrangement, which includes, but is not necessarily 
limited to, an agreement, (a) that it will sell, or sell only, certain 
goods specified by a particular manufacturer, distributor, or 
advertiser, or (b) that it will join with other such establishments in 
the same industry for the purpose of the collective purchasing, or (c) 
that it will have the exclusive right to sell the goods or use the brand 
name of a manufacturer, distributor, or advertiser within a specified 
area, or by reason of the fact that it occupies premises leased to it by 
a person who also leases premises to other retail or service 
establishments * * *


The scope and application of this definitional language is discussed in 
subpart C of this part.
    (b) The 1966 amendments added two clauses to the above language of 
the definition to make it clear that ``the activities performed by any 
person or persons'' will be regarded as performed for a business purpose 
if they are performed:

    (1) In connection with the operation of a hospital, an institution 
primarily engaged in the care of the sick, the aged, the mentally ill or 
defective who reside on the premises of such institution, a school for 
mentally or physically handicapped or gifted children, an elementary or 
secondary school, or an institution of higher education (regardless of 
whether or not such hospital, institution, or school is public or 
private or operated for profit or not for profit); or
    (2) In connection with the operation of a street, suburban, or 
interurban electric railway, or local trolley or motorbus carrier, if 
the rates and services of such railway or carrier are subject to 
regulation by a State or local agency (regardless of whether or not such 
railway or carrier is public or private or operated for profit or not 
for profit).


A discussion of the scope and application of this added language is 
contained in part 776 of this chapter.
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