CFR > Title 29 - Labor > SUBTITLE B—Regulations Relating to Labor > CHAPTER V—WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR (parts 500 to 871) > SUBCHAPTER B—STATEMENTS OF GENERAL POLICY OR INTERPRETATION NOT DIRECTLY RELATED TO REGULATIONS (parts 775 to 794) > PART 794—PARTIAL OVERTIME EXEMPTION FOR EMPLOYEES OF WHOLESALE OR BULK PETROLEUM DISTRIBUTORS UNDER SECTION 7(b)(3) OF THE FAIR LABOR STANDARDS ACT > SUBPART B—Exemption From Overtime Pay Requirements Under Section 7(b)(3) of the Act (§794.100 to §794.144) > 794.127—Exemption conditioned on making 75 percent of sales within the State.

794.127—Exemption conditioned on making 75 percent of sales within the State.

A further requirement of the section 7(b)(3) exemption is that more than 75 percent of the sales of the enterprise engaged in the wholesale or bulk distribution of petroleum products (measured by annual dollar volume) must be made “within the State in which such enterprise is located.” This means that over 75 percent of the annual dollar volume of sales must be from sales to customers within the same State in which the enterprise is located. If 25 percent or more of its sales volume is from sales to customers outside the State of its location, the requirement is not met and the enterprise cannot qualify for exemption.