---
kind: "section"
citation: "29 C.F.R. § 794.119"
title: "29"
number: "794.119"
heading: "Dependence of exemption on sales volume of the enterprise."
url: "https://uscodex.org/cfr/29/794.119"
---

# §794.119. Dependence of exemption on sales volume of the enterprise.


It is a requirement of the [section 7(b)(3)](/cfr/29/7.md?p=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)](/cfr/29/3.md?p=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.


## Notes

### Authority

Authority: Secs. 1-19, 52 Stat. 1060, as amended; 29 U.S.C. 201-219.

### Source

Source: 35 FR 16510, Oct. 22, 1970, unless otherwise noted.