776.16 (a) The statutory provisions (b) General score of "production" coverage (a) Coverage in general . . . 16 17 or in any other manner working on" goods 776.17 - (a) Coverage in general -Employment in a "closely related process or occupation directly essential to" production of goods 222 21 21 (c) 776.18 Determining whether activities are "closely related" and "directly essential Employees of independent employers meeting needs of producers for commerce Extent of coverage under "closely related" and "directly essential" clause "Goods" The statutory provision (b) "Articles or subjects of commerce of any character" (d) Effect of the exclusionary clause "For" commerce . . . (a) General principles. 31 www w 40 41 41 42 44 45 (08872) The Fair Labor Standards Act of 1938, as amended 1/ (hereinafter referred to as the Act), brings within the general coverage of its wago and hours provisions every employee who is "engaged in commerce or in the production of goods for commerce." 2/ What employees are so engaged must be ascertained in the light of the definitions of "commerce", "goods", and "produced" which are set forth in the Act as amended by the Fair Labor Standards Amendments of 1949, 3/ giving due regard to authoritative interpretations by the courts and to the legislative history of the Act, as amended. Interpretations of the Administrator of the Wage and Hour Division with respect to this general coverage are set forth herein to provide "a practical guide to employers and employees as to how the office representing the public interest in its enforcement will seek to apply it." These interpretations, with respect to the general coverage of the wage and hours 1/ Pub. No. 718, 75th Cong., 3d Sess. (52 Stat. 1060), as amended by the Ast of June 26, 1940 (Pub. Res. No. 88, 76th Cong., 3d sess., 54 Stat. 616); by Reorganisation Plan No. 2 (60 Stat. 1095), effective July 16, 1946; by the Portal-to-Portal Act of 1947, approved May 14, 1947 (61 Stat. 84); and by the Fair Labor Standards Amendments of 1949, approved October 26, 1949 (Public Law 393, 81st Cong., 1st sess., 63 Stat. 910). 2/ The requirement of Section 6 as to minimum wages is: "Every employer shall pay to each of his employees who is engaged in commerce or in the production of goods for commerce wages at the following rates--" (not less than 75 cents an hour, except in Puerto Rico and the Virgin Islands to which special provisions apply) The requirement of Section 7 as to maximum hours which an employee may work without receiving extra pay for overtime is: "no employer shall employ any of his employees who is engaged in commerce or in the production of goods for commerce for a workweek longer than forty hours, unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed." 3/ Public Law 393, 81st Cong., lst seas. (63 Stat. 910). These amendments, effective January 25, 1950, leave the existing law unchanged except as to provisions specifically amended and the addition of certain new provisions. Section 3(b) of the Act, defining "commerce" and section 3(j), defining "produced," were specifically amended as explained in sections 776.13 and 776.17(a) herein. ▲ Skidmore v. Swift & Co., 323 U.S. 134, 138. (08872) provisions of the Act, indicate the construction of the law which the Under the Portal-to-Portal Act of 1947, 5/ interpretations of the Administrator may, under certain circumstances, be controlling in determining the rights and liabilities of employers and employees. The interpretations contained in this bulletin are interpretations on which reliance may be placed as provided in section 10 of the Portal-to-Portal Act, so long as they remain effective and are not modified, amended, rescinded, or determined by judicial authority to be incorrect. However, the omission to discuss a particular problem in this bulletin or in interpretations supplementing it should not be taken to indicate the adoption of any position by the Administrator with respect to such problem or to constitute an administrative interpretation or practice or enforcement policy. (b) Exemptions and child labor provisions not discussed. This bulletin does not deal with the various specific exemptions provided in the statute, under which certain employees engaged in commerce or in the production of goods for commerce and thus within the general coverage of the wage and hours provisions are wholly or partially excluded from the protection of the Act's minimum-wage and overtime-pay requirements. Some of these exemptions are self-executing; others call for definitions or other action by the Administrator. Regulations and interpretations relating to specific exemptions may be found in other statements issued by the Administrator. Coverage and exemptions under the child labor provisions of the Act are discussed in a separate interpretative bulletin (Part 450) issued by the Secretary of Labor. (c) Earlier interpretations superseded. All general and specific interpretations issued prior to July 11, 1947 with respect to the general coverage of the wage and hours provisions of the Act were rescinded and withdrawn by section 776.0(b) of the general statement on this subject, published in the Federal Register on that date as Part 776. To the extent that interpretations contained in such general statement or in releases, opinion letters, and other statements issued on or after July 11, 1947, are inconsistent with the provisions of the Fair Labor Standards Amendments of 1949, they do not continue in effect after 5/ Public Law 49, 80th Cong., 1st sess. (61 Stat. 84), discussed in Part 790 (statement on effect of Portal-to-Portal Act of 1947). 6/12 F.R. 4583. - 2 (08872) 1 H |