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Federal regulations · Through 2026-08-25 · Newer source version available

29 CFR 794.119: Dependence of exemption on sales volume of the enterprise.

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Where this section sits in the code
  1. Title 29—Labor
  2. Subtitle B—Regulations Relating to Labor
  3. CHAPTER V—WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
  4. SUBCHAPTER B—STATEMENTS OF GENERAL POLICY OR INTERPRETATION NOT DIRECTLY RELATED TO REGULATIONS
  5. PART 794—PARTIAL OVERTIME EXEMPTION FOR EMPLOYEES OF WHOLESALE OR BULK PETROLEUM DISTRIBUTORS UNDER SECTION 7(b)(3) OF THE FAIR LABOR STANDARDS ACT
  6. Subpart B—Exemption From Overtime Pay Requirements Under Section 7(b)(3) of the Act

It is a requirement of the section 7(b)(3) exemption that the annual gross volume of sales of the enterprise must be less than $1 million exclusive of excise taxes. This dollar volume test is separate and distinct from the $250,000 annual gross volume (of sales made or business done) test in section 3(s)(1) of the Act. This latter test is for the purpose of determining coverage as an enterprise engaged in commerce or in the production of goods for commerce; whereas the $1 million test is for limiting the 7(b)(3) exemption to enterprises with annual sales of less than that amount.

Collected 2026-08-27T02:25:20Z. Source file · JSON

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