29 C.F.R. § 779.266

Methods of computing annual volume of sales or business

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(a) No computations of annual gross dollar volume are necessary to determine coverage or exemption in those enterprises in which the gross receipts regularly derived each year from the business are known by the employers to be substantially in excess or substantially under the minimum dollar volume specified in the applicable provision of the Act. Also, where the enterprise or establishment, during the portion of its current income tax year up to the end of the current payroll period, has already had a gross volume of sales or business in excess of the dollar amount specified in the statute, it is plain that its annual dollar volume currently is in excess of the statutory amount, and that the Act applies accordingly. The computation described in paragraph (b) of this section, therefore need not be made. Nor is it required where the enterprise or establishment has not yet in such current year exceeded the statutory amount in its gross volume of sales or business, if it has had, in the most recently ended year used by it for income tax purposes, a gross volume of sales made and business done in excess of the amount specified in the Act. In such event, the enterprise or establishment will be deemed to have an annual gross volume in excess of the statutory amount unless the employer establishes, through use of the method set forth in paragraph (b) of this section, an annual gross volume of sales made or business done which is less than the amount specified in the Act. The method described in paragraph (b) of this section shall be used, as intended by the Congress (see S. Rept. 145, 87th Cong. first session, p. 38), for computation of annual dollar volume in all cases when such a computation becomes necessary in order to determine the applicability of provisions of the Act.

(b) In order to determine, when there may be doubt, whether an enterprise or establishment has an annual gross volume of sales made or business done in excess of the amount specified in the statute, and analysis will be made at the beginning of each quarter-year so that the employer will know whether or not the dollar volume tests have been met for the purpose of complying with the law in the workweeks ending in the current quarter-year. The total of the gross receipts from all its sales or business during a 12-month period which immediately precedes the quarter-year being tested will be the basis for analysis. When it is necessary to make a determination for enterprises or establishments which are operated on a calendar year basis for income tax or sales or other accounting purposes the quarter-year periods tested will coincide with the calendar quarters (January 1-March 31; April 1-June 30; July 1-September 30; October 1-December 31). On the other hand, where enterprises or establishments are operated on a fiscal year basis, which consists of an annual period different from the calendar year, the four quarters of the fiscal period will be used in lieu of calendar quarters in computing the annual volume. Once either basis has been adopted it must be used in making subsequent calculations. The sales records maintained as a result of the accounting procedures used for tax or other business purposes may be utilized in computing the annual dollar volume provided the same accounting procedure is used consistently and that such procedure accurately reflects the annual volume of sales or business.

Notes of Decisions

Cited in 23 cases (6 in the last 5 years), 1976–2026 · leading case: Jesus Lazaro Collar v. Abalux, Inc., 895 F.3d 1278 (11th Cir. 2018).

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Jesus Lazaro Collar v. Abalux, Inc., 895 F.3d 1278 (11th Cir. 2018). “" 29 C.F.R. § 779.266 (b). As the district court ruled, "The undisputed facts establish that since 2012, Abalux has consistently used a cash basis method as its accounting method for annual gross receipts.”

Burnley v. Short, 730 F.2d 136 (4th Cir. 1984). · cites it 2× “In his computation of Short’s initial FLSA coverage, the trial judge used the “rolling quarters” method prescribed in an interpretive bulletin published in 29 C.F.R. § 779.266 (b). In addition, the trial judge included all receipts from long distance telephone calls made by…”

W. J. Usery, Jr., Sec'y of Labor, United States Dep't of Labor v. Associated Drugs, Inc., 538 F.2d 1191 (5th Cir. 1976). “The rolling quarter method of computation of annual volume of sales or business has its origin in an Interpretative Bulletin which appears in the Code of Federal Regulations, 29 CFR 779.266(b). 1 The Court held that the “Defendant is a marginal business insofar as the…”

Flores v. Nuvoc, Inc., 610 F. Supp. 2d 1349 (S.D. Fla. 2008). “Federal Regulations that provides as follows: [Wjhen there may be doubt whether an enterprise or establishment has an annual gross volume of sales made or business done in excess of the amount specified in the statute, an analysis will be made at the beginning of each quarter…”

Landeros v. Fu King, Inc., 12 F. Supp. 3d 1020 (S.D. Tex. 2014). “1981), the Fifth Circuit generally approved of the “rolling quarter” method described by the Secretary of Labor in 29 C.F.R. § 779.266 . Under this method, “an employer determines if it is covered by the [FLSA] at the beginning of each quarter .”

Exime v. E.W. Ventures, Inc., 591 F. Supp. 2d 1364 (S.D. Fla. 2008). “In opposition to this evidence, Defendants argue for application of the “rolling quarters” accounting method, pursuant to 29 C.F.R. § 779.266 . That regulation provides, in relevant part: (a) No computations of annual gross dollar volume are necessary to determine coverage or…”

Centeno-Bernuy v. Becker Farms, 564 F. Supp. 2d 166 (W.D.N.Y. 2008). “29 C.F.R. § 779.266 (b). As the Court cannot discern from the financial information presented at what point this alternative test would have relieved defendants of their obligation to abide by the FLSA in 2001, the Court cannot grant summary judgement to the defendants on the…”

Rains v. East Coast Towing & Storage, LLC, 820 F. Supp. 2d 743 (E.D. Va. 2011). “Especially since computation of annual gross volume of sales is not limited to any particular twelve month period (see 29 C.F.R. § 779.266 ), this Court finds that Plaintiff has alleged sufficient evidence to create a genuine issue of material fact as to whether East Coast…”

Martinez-Pinillos v. Air Flow Filters, Inc., 738 F. Supp. 2d 1268 (S.D. Fla. 2010). “The total of the gross receipts from all its sales or business during a 12-month period which immediately precedes the quarter-year being tested will be the basis for analysis ____ 29 C.F.R. § 779.266 (b). Here, Plaintiff has the burden of demonstrating that Air Flow had an…”

Raymond J. Donovan, Sec'y of Labor, United States Dep't of Labor v. I-20 Motels, Inc. & James S. Noel, 664 F.2d 957 (5th Cir. 1981). “) In an interpretative bulletin, 29 C.F.R. § 779.266 , the Secretary of Labor has described the operation of the rolling quarter method; if an employer’s business exceeds the dollar volume requirement in any calendar year, the business will be presumed to be covered in the next…”

Marshall v. Duncan, 480 F. Supp. 62 (E.D. Tenn. 1979). · cites it 2× “29 C.F.R. § 779.266 . Under this method, the employer must calculate his annual gross volume at the beginning of each quarter for the four quarters immediately preceding the date of calculation.”

Mendoza v. Disc. C.V. Jt. Rack & Pinion Rebuilding, Inc., 101 F. Supp. 3d 1282 (S.D. Fla. 2015). “29 C.F.R. 779.266. Here, by Plaintiffs own admission, tax returns show less than the requisite $500,000.”

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— 29 C.F.R. § 779.266(b) — 3 cases

Walsh v. Dayemi Org., Inc. (S.D. Ill. 2022).

Centeno-Bernuy v. Becker Farms, 546 F. Supp. 2d 166 (W.D.N.Y. 2008).

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