Issue: Whether a Hotel is covered under the Fair Labor Standards Act (FLSA), 29 U.S.C. 201?
| Area of Law: | Employee Law |
| Keywords: | Hotel; Fair Labor Standards Act (FLSA) |
| Jurisdiction: | Federal |
| Cited Cases: | 730 F.2d 136; 414 U.S. 190; 751 F. Supp. 799 |
| Cited Statutes: | 29 U.S.C. § 203(s)(1)(A)(ii); 29 C.F.R. §§ 779.258—.269; 29 U.S.C. 201 |
| Date: | 06/01/2001 |
The issue of whether a Hotel is covered under the FLSA turns on the question of whether it is “an enterprise engaged in commerce or in the production of goods for commerce,” which is defined in pertinent part as “an enterprise whose annual gross volume of sales made or business done is not less than $500,000 (exclusive of excise taxes at the retail level which are separately stated).” 29 U.S.C. § 203(s)(1)(A)(ii).
The Department of Labor has issued Interpretative Bulletins, embodied in 29 C.F.R. Part 779, Subpart C, which provide some guidance as to how annual gross volume is to be calculated. See 29 C.F.R. §§ 779.258—.269 (2000). According to those provisions:
The annual gross volume of sales made or business done of an enterprise consists of its gross receipts from all types of sales made and business done during a 12-month period. The gross volume of sales made or business done means the gross dollar volume (not limited to income) derived from all sales and business transactions including, for example, gross receipts from service, credit, or other similar charges. Credits for goods returned or exchanged and rebates and discounts, and the like, are not ordinarily included in the annual gross volume of sales or business. . . . Gross volume is measured by the price paid by the purchaser for the property or service sold to him . . . . It is not measured by profit on goods sold or commissions on sales made for others. . . . The computation of the annual gross volume […]
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