--- kind: "range" citation: "29 C.F.R. §§ 779.237–779.243" title: "29" from: "779.237" to: "779.243" count: 7 url: "https://uscodex.org/cfr/29/779.237..779.243" --- # §779.237. Enterprise engaged in commerce or in the production of goods for commerce. Under [section 3(s)](/cfr/29/3.md?p=s) the “enterprise” to be covered must be an “enterprise engaged in commerce or in the production of goods for commerce.” This is defined in [section 3(s)](/cfr/29/3.md?p=s) as follows: - (a) Engaged in commerce or in the production of goods for commerce, including - (b) Employees handling, selling or otherwise working on goods that have been moved in or produced for commerce by any person. # §779.238. Engagement in described activities determined on annual basis. As set forth in the preceding section an enterprise to be a “covered enterprise” must have at least some employees engaged in certain described activities. This requirement will be determined on an annual basis in order to give full effect to the intent of Congress. Thus, it is not necessary that the enterprise have two or more employees engaged in the named activities every week. An enterprise described in section [3(s)(1)](/cfr/29/3.md?p=s-1) or [(5)](/cfr/29/3.md?p=s-5) of the prior Act or in section 3(s)(1) of the Act as it was amended in 1966 will be considered to have employees engaged in commerce or in the production of goods for commerce, including the handling, selling or otherwise working on goods that have been moved in or produced for commerce by any person, if during the annual period which it uses in calculating its annual sales for purposes of the other conditions of these sections, it regularly and recurrently has at least two or more employees engaged in such activities. On the other hand, it is plain that an enterprise that has employees engaged in such activities only in isolated or sporadic occasions, will not meet this condition. # §779.239. Meaning of “engaged in commerce or in the production of goods for commerce.” The term “engaged in commerce or in the production of goods for commerce,” as used in section 3(s) of the Act in reference to employees who are so engaged is the same as the term which has been used in the Act for many years. The statutory definitions of these terms are set forth in [§§ 779.12 through 779.16](/cfr/29/779.12..779.16.md). The interpretative bulletin on general coverage [part 776](/cfr/29/part776.md) of this chapter) contains the Division's interpretations as to which employees are “engaged in commerce or in the production of goods for commerce.” These interpretations are equally applicable under [section 3(s)](/cfr/29/3.md?p=s) in determining which employees are “engaged in commerce or in the production of goods for commerce” within the meaning of this section. A brief discussion of the guiding principles of retail or service establishments are “engaged in commerce or in the production of goods for commerce” is set forth in [subpart B](/cfr/29/subpartB.md) of this part. # §779.240. Employees “handling * * * or otherwise working on goods.” - (a) **“Goods” upon which the described activities are performed.** Employees will be considered to be handling, selling, or otherwise working on goods within the meaning of [section 3(s)](/cfr/29/3.md?p=s) if they engage in the described activities on “goods” which “have been moved in or produced for commerce by any person.” They may be handling or working on such goods which the enterprise does not sell. The term “goods” is defined in [section 3(i)](/cfr/29/3.md?p=i) of the Act. The definition is explained in [§ 779.107](/cfr/29/779.107.md) and discussed comprehensively in [part 776](/cfr/29/part776.md) of this chapter. As defined in section 3(i) of the Act, the term includes any part or ingredient of “goods” and, in general, includes “articles or subjects of commerce of any character.” Thus the term “goods,” as used in [section 3(s)](/cfr/29/3.md?p=s), includes all goods which have been moved in or produced for commerce, such as stock-in-trade, or raw materials that have been moved in or produced for commerce. - (b) **“Handling * * * or otherwise working on goods.”—** The term “handling * * * or otherwise working on goods” used in [section 3(s)](/cfr/29/3.md?p=s) is substantially the same as the term used since 1938 in [section 3(j)](/cfr/29/3.md?p=j) of the Act. Both terms will therefore be considered to have essentially the same meaning. (See [part 776](/cfr/29/part776.md) of this chapter, the interpretative bulletin on the general coverage of the Act.) Thus, the activities encompassed in the term “handling or in any other manner working on goods” in [section 3(s)](/cfr/29/3.md?p=s) are the same as the activities, encompassed in the similar term in [section 3(j)](/cfr/29/3.md?p=j), by which goods are “produced” within the meaning of the Act. In general, the term “handling * * * or otherwise working on goods” includes employees who sort, screen, grade, store, pack, label, address, transport, deliver, print, type, or otherwise handle or work on the goods. The same will be true of employees who handle or work on “any part of ingredient of the goods” referred to in the discussion of the term “goods” in [§ 779.107](/cfr/29/779.107.md). An employee will be considered engaged in “handling * * * or otherwise working on goods,” within the meaning of [section 3(s)](/cfr/29/3.md?p=s), only if he performs the described activities on goods that “have been moved in or produced for commerce by any person.” This requirement is discussed in §§ [779.242](/cfr/29/779.242.md) and [779.243](/cfr/29/779.243.md). # §779.241. Selling. The statutory definition of the term “sale” or “sell” is quoted in [§ 779.15](/cfr/29/779.15.md). As long as the employee in any way participates in the sale of the goods he will be considered to be “selling” the goods, whether he physically handles them or not. Thus, if the employee performs any work that, in a practical sense is an essential part of consummating the “sale” of the particular goods, he will be considered to be “selling” the goods. “Selling” goods, under [section 3(s)](/cfr/29/3.md?p=s) has reference only to goods which “have been moved in or produced for commerce by any person,” as discussed in §§ [779.242](/cfr/29/779.242.md) and [779.243](/cfr/29/779.243.md). # §779.242. Goods that “have been moved in” commerce. For the purpose of [section 3(s)](/cfr/29/3.md?p=s), goods will be considered to “have been moved * * * in commerce” when they have moved across State lines before they are handled, sold, or otherwise worked on by the employees. It is immaterial in such a case that the goods may have “come to rest” within the meaning of the term “in commerce” as interpreted in other respects, before they are handled, sold, or otherwise worked on by the employees in the enterprise. Such movement in commerce may take place before they have reached the enterprise, or within the enterprise, such as from a warehouse of the enterprise in one State to a retail store of the same enterprise located in another State. Thus, employees will be considered to be “handling, selling, or otherwise working on goods that have been moved in * * * commerce” where they are engaged in the described activities on “goods” that have moved across State lines at any time in the course of business, such as from the manufacturer to the distributor, or to the “enterprise,” or from one establishment to another within the “enterprise.” See the general discussion in [part 776](/cfr/29/part776.md) of this chapter. # §779.243. Goods that have been “produced for commerce by any person.” An employee will be considered to be handling, selling, or otherwise working on goods that have been “produced for commerce by any person” within the meaning of [section 3(s)](/cfr/29/3.md?p=s), if he is performing the described activities with respect to goods which have been “produced for commerce” within the meaning of the Act. The term “produced” is defined in section 3(j) of the Act and, as explained above, has a well-established meaning under the existing law. (See [§ 779.104](/cfr/29/779.104.md) and [part 776](/cfr/29/part776.md) of this chapter.) The word as it is used in the context of the phrase “goods * * * produced for commerce by any person” in [section 3(s)](/cfr/29/3.md?p=s) has the same meaning as in 3(j). Therefore, where goods are considered “produced for commerce” within the meaning of section 3(j) of the Act they also will be considered “produced for commerce” within the meaning of [section 3(s)](/cfr/29/3.md?p=s). A discussion of when goods are produced for commerce within the meaning of [section 3(j)](/cfr/29/3.md?p=j) is contained in [§ 779.108](/cfr/29/779.108.md). Of course, within the meaning of [section 3(s)](/cfr/29/3.md?p=s), the goods will be considered “produced for commerce” when they are so produced “by any person.”