Code of Federal Regulations (Last Updated: July 5, 2024) |
Title 29 - Labor |
Subtitle B - Regulations Relating to Labor |
Chapter V - Wage and Hour Division, Department of Labor |
SubChapter B - Statements of General Policy or Interpretation Not Directly Related to Regulations |
Part 779 - The Fair Labor Standards Act as Applied to Retailers of Goods or Services |
Subpart C - Employment to Which the Act May Apply; Enterprise Coverage |
Leased Departments, Franchise and Other Business Arrangements |
§ 779.234 - Establishments whose only regular employees are the owner or members of his immediate family.
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§ 779.234 Establishments whose only regular employees are the owner or members of his immediate family.
Section 3(s) provides that any “establishment which has as its only regular employees the owner thereof or the parent, spouse, child, or other member of the immediate family of such owner” shall not be considered to be an “enterprise” as described in section 3(r) or a part of any other enterprise. Further the sales of such establishment are not included for the purpose of determining the annual gross volume of sales of any enterprise for the purpose of section 3(s). The term “other member of the immediate family of such owner” is considered to include relationships such as brother, sister, grandchildren, grandparents, and in-laws but not distant relatives from separate households. The 1966 amendments extended the exception to include family operated establishments which only employ persons other than members of the immediate family infrequently, irregularly, and sporadically. (See general discussion in part 776 of this chapter.)