public or private account, of buildings, housing, highways and streets, catchments, dams, and any other structure.

(f) Hotel industry. (1) The minimum wage for this industry is $2.03 an hour for a period of 1 year following the March 1, 1991, effective date specified in § 697.3 and $2.11 an hour thereafter.

(2) The industry shall include all activities in connection with the operation of hotels (whether privately or government owned in whole or in part), motels, apartment hotels, and tourist courts engaged in providing lodging, with or without meals, for the general public, incuding such laundry and cleaning and other activities as are engaged in by a hotel or motel or other lodging facility on its own linens or on garments of its guests.

(g) Retailing, wholesaling and warehousing industry. (1) The minimum wage for this industry is $2.34 an hour for a period of 1 year following the March 1, 1991, effective date specified in § 697.3 and $2.43 an hour thereafter.

(2) This industry includes all activities in connection with the selling of goods or services at retail, including the operation of retail stores and other retail establishments, the wholesaling and warehousing and other distribution of commodities including but without limitation the wholesaling, warehousing and other distribution activities of jobbers, importers and exporters, manufacturers' sales branches and sales offices engaged in the distribution of products manufactured outside of American Samoa, industrial distributors, mail order establishments, brokers and agents, and public warehouses: Provided, however, That this industry shall not include retailing and wholesaling activities included within other industry wage orders which are applicable in American Samoa.

(h) Ship maintenance industry. (1) The minimum wage for this industry is $2.60 an hour for a period of 1 year following the March 1, 1991, effective date specified in § 697.3 and $2.70 an hour thereafter.

(2) This industry is defined as all work activity associated with ship repair and maintenance, including

marine railway and dry dock operations.

(i) Bottling, brewing and dairy industry. (1) The minimum wage for this industry is $2.34 an hour for a period of 1 year following the March 1, 1991, effective date specified in § 697.3 and $2.43 an hour thereafter.

(2) The bottling, brewing and dairy products industry includes the bottling, sale and distribution of malt beverages and soft drinks in bottles and other containers and the processing or recombining of fluid milk and cream for wholesale and retail distribution and the manufacture of malt beverages, butter, natural and processed cheese, condensed and evaporated milk, malted milk, ice cream and frozen desserts; including also any warehousing operations incidental to the above activities.

(j) Printing and publishing industry. (1) The minimum wage for this industry is $2.60 an hour for a period of 1 year following the March 1, 1991, effective date specified in § 697.3 and $2.70 an hour thereafter.

(2) The printing and publishing industry is that industry which is engaged in printing, job printing, duplicating and publishing, other than the publishing of a weekly, semiweekly or daily newspaper with a circulation of less than 4,000, the major part of which circulation is within the county where published or counties contiguous thereto.

(k) Finance and insurance industry. (1) The minimum wage for this industry is $2.82 an hour for a period of 1 year following the March 1, 1991, effective date specified in § 697.3 and $2.93 an hour thereafter.

(2) The finance and insurance industry includes all banks (whether privately or government owned in whole or in part) and trust companies, credit agencies other than banks, holding companies, other investment companies, collection agencies, brokers and dealers in securities and commodity contracts, as well as carriers of all types of insurance, and insurance agents and brokers.

(1) Private hospitals and educational institutions industry. (1) The minimum wage for this industry is $2.34 an hour for a period of 1 year following

the March 1, 1991, effective date specified in § 697.3 and $2.43 an hour thereafter.

(2) This industry shall include all activities performed in connection with the operation of private hospitals, nursing homes and related institutions primarily engaged in the care of the sick, the aged or the mentally ill or retarded who reside on the premises of such institutions, private schools for the mentally or physically disabled or for gifted children, preschools, elementary or secondary schools, or institutions of higher education: Provided, however, That this industry shall not include employees of the Government of American Samoa or employees of any agency or corporation of the Government of American Samoa.

(m) Government employees industry. (1) The minimum wage for this industry is $2.17 an hour effective March 1, 1991.

(2) This industry includes all activities of employees of the Government of American Samoa. This industry does not include any employees of the United States or its agencies.

(n) Miscellaneous activities industry. (1) The minimum wage for this in

Sec.

PART 775-GENERAL

775.0 General enforcement policy.

775.1 Advisory interpretations announced by the Administrator.

AUTHORITY: 52 Stat. 1060, 29 U.S.C. 201 et seq., 61 Stat. 84, 29 U.S.C. 251 et seq., 49 Stat. 2036, 41 U.S.C. 35 et seq.

8775.0 General enforcement policy.

(a) In order to clarify at this time the practices and policies which will guide the administration and enforcement of the Fair Labor Standards Act of 1938, as amended (52 Stat. 1060, 29 U.S.C. 201-219), and the Walsh-Healey Act as amended (49 Stat. 2036, 41 U.S.C. 35-45), as affected by the Portal-to-Portal Act of 1947 (61 Stat. 84; 29 U.S.C. Sup. 251 et seq.), the following policy is announced effective June 30, 1947.

(b) The investigation, inspection and enforcement activities of all officers and agencies of the Department of Labor as they relate to the Fair Labor Standards Act and the Walsh-Healey Act will be carried out on the basis that all employers in all industries whose activities are subject to the provisions of the Fair Labor Standards Act or the Walsh-Healey Act are responsible for strict compliance with the provisions thereof and the regulations issued pursuant thereto.

(c) Any statements, orders, or instructions inconsistent herewith are rescinded.

[12 FR 3915, June 17, 1947]

Sec.

Subpart B-Construction Industry 776.22 Subpart limited to individual employee coverage.

ENTERPRISE COVERAGE

776.22a Extension of coverage to employment in certain enterprises.

INDIVIDUAL EMPLOYEE COVERAGE IN THE
CONSTRUCTION INDUSTRY

776.22b Guiding principles.

776.23 Employment in the construction industry.

776.24 Travel in connection with construction projects.

776.25 Regular and recurring activities as basis of coverage.

776.26 Relationship of the construction work to the covered facility.

776.27 Construction which is related to covered production.

776.28 Covered preparatory activities. 776.29 Instrumentalities and channels of interstate commerce.

776.30 Construction performed on temporarily idle facilities.

AUTHORITY: 52 Stat. 1060, as amended; 29 U.S.C. 201-219.

Subpart A-General

SOURCE: 15 FR 2925, May 17, 1950, unless otherwise noted.

§ 776.0 Subpart limited to individual employee coverage.

This subpart, which was adopted before the amendments of 1961 and 1966 to the Fair Labor Standards Act, is limited to discussion of general coverage of the Act on the traditional basis of engagement by individual employees "in commerce or in the production of goods for commerce". The 1961 and 1966 amendments broadened coverage by extending it to other employees on an "enterprise" basis, when “employed in an enterprise engaged in commerce or in the production of goods for commerce" as defined in section 3 (r), (s), of the present Act. Employees covered under the principles discussed in this subpart remain covered under the Act as amended; however, an employee who would not be individually covered under the principles discussed in this subpart may now be subject to the Act if he is employed in a covered enterprise as defined in the amendments. Questions of "enter

prise coverage” not answered in published statements of the Department of Labor may be addressed to the Administrator of the Wage and Hour Division, Department of Labor, Washington, DC 20210 or assistance may be requested from any of the Regional or District Offices of the Division.

[35 FR 5543, Apr. 3, 1970]

INDIVIDUAL EMPLOYEE COVERAGE

§ 776.0a Introductory statement.

(a) Scope and significance of this part. (1) The Fair Labor Standards Act of 19381 (hereinafter referred to as the Act), brings within the general coverage of its wage 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

'Pub. L. 718, 75th Cong., 3d sess. (52 Stat. 1060), as amended by the Act of June 26, 1940 (Pub. Res. No. 88, 76th Cong., 3d sess., 54 Stat. 616); by Reorganization 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 (Pub. L. 393, 81st Cong., 1st sess., 63 Stat. 910); by Reorganization Plan No. 6 of 1950 (15 FR 3174), effective May 24, 1950; and by the Fair Labor Standards Amendments of 1955, approved August 12, 1955 (Pub. L. 381, 84th Cong., 1st sess., C. 867, 69 Stat. 711).

"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 $1.00 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."

4

Amendments of 1949, 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 in this part 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 provisions of the Act, indicate the construction of the law which the Administrator believes to be correct and which will guide him in the performance of his administrative duties under the Act unless and until he is otherwise directed by authoritative decisions of the courts or concludes, upon reexamination of an interpretation, that it is incorrect.

(2) Under the Portal-to-Portal Act of 1947, 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 part 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.

'Pub. L. 393, 81st Cong., 1st sess. (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 §§ 776.13 and 776.17(a) herein.

'Skidmore v. Swift & Co., 323 U.S. 134,

138.

'Pub. L. 49, 80th Cong., 1st sess. (61 Stat. 84), discussed in part 790 of this chapter.

(b) Exemptions and child labor provisions not discussed. This part 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 parts of this chapter. Coverage and exemptions under the child labor provisions of the Act are discussed in a separate interpretative bulletin

(§§ 570.101 to 570.121 of this chapter) 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 § 776.0(b) of the general statement on this subject, published in the FEDERAL REGISTER On that date as part 776 of this chapter (12 FR 4583). 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 January 24, 1950. Effec

6

Section 16(c) of the Fair Labor Standards Amendments of 1949 (63 Stat. 910) provides:

"Any order, regulation, or interpretation of the Administrator of the Wage and Hour Division or of the Secretary of Labor, and any agreement entered into by the Administrator or the Secretary, in effect under the provisions of the Fair Labor Standards Act of 1938, as amended, on the effective date of this Act, shall remain in effect as an order, regulation, interpretation, or agreement of the Administrator or the Secretary, as the case may be, pursuant to this Act, except to the extent that any such order, regulation, interpretation, or agreement may be inconsistent with the provisions of this Act, or Continued