C.F.R. » Title 29 » 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 E—Provisions Relating to Certain Employees of Retail or Service Establishments

29 C.F.R. § 779.414

Types of employment in which this overtime pay exemption may apply

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Section 7(i) was enacted to relieve an employer from the obligation of paying overtime compensation to certain employees of a retail or service establishment paid wholly or in greater part on the basis of commissions. These employees are generally employed in so-called “big ticket” departments and those establishments or parts of establishments where commission methods of payment traditionally have been used, typically those dealing in furniture, bedding and home furnishings, floor covering, draperies, major appliances, musical instruments, radios and television, men's clothing, women's ready to wear, shoes, corsets, home insulation, and various home custom orders. There may be other segments in retailing where the proportionate amount of commission payments would be great enough for employees employed in such segments to come within the exemption. Each such situation will be examined, where exemption is claimed, to make certain the employees treated as exempt from overtime compensation under section 7(i) are properly within the statutory exclusion.

Notes of Decisions
Cited in 14 cases (5 in the last 5 years), 1986–2026 · leading case: Wai Tom v. Hosp. Ventures LLC, 980 F.3d 1027 (4th Cir. 2020).
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Wai Tom v. Hosp. Ventures LLC, 980 F.3d 1027 (4th Cir. 2020). · cites it 2× “” 29 C.F.R. § 779.414 . Thus, if compensation qualifies as a commission under this provision, an employer is exempt from the FLSA’s overtime requirements, but not its minimum-wage requirements.”
Parker v. NutriSystem, Inc., 620 F.3d 274 (3rd Cir. 2010). · cites it 2× “29 C.F.R. § 779.414 . Although the Department has not defined "commission" in its regulations, [3] the *280 Wage and Hour Division of the Department of Labor has attempted to explain the meaning of the term "commission" under the retail commission exception through various…”
Kostas Mechmet v. Four Seasons Hotels, Ltd., 825 F.2d 1173 (7th Cir. 1987). “The Department of Labor regulation published in 29 C.F.R. § 779.414 helps us see that none of the purposes that we have identified for the overtime provisions would be served by holding the provisions applicable to employees working in what the regulation calls ‘“big ticket'…”
Matrai v. DirecTV, LLC, 168 F. Supp. 3d 1347 (D. Kan. 2016). “Each such situation will be examined, where exemption is claimed, to make certain the employees treated as exempt from overtime compensation under section 7(i) are properly within the statutory exclusion.”
Johnson v. Wave Comm GR LLC, 4 F. Supp. 3d 423 (N.D.N.Y. 2014). “See 29 C.F.R. § 779.414 . This argument is without merit.”
Mechmet v. Four Seasons Hotels, Ltd., 639 F. Supp. 330 (N.D. Ill. 1986). · cites it 2× “” 29 C.F.R. § 779.414 (1984). Section 779.414 also indicates that there may be other segments in retailing where the proportionate amount of commission payments would be great enough for employees in such segments to come within the exemption.”
Keyes Motors, Inc. v. Div. of Labor Standards Enf't, 109 Lab. Cas. (CCH) 55,926 (Cal. Ct. App. 1987). “( 29 C.F.R. § 779.414 .) 29 Code of Federal Regulations section 779.”
Gieg v. Ddr, Inc., 407 F.3d 1038 (9th Cir. 2005). “” The legislative purpose of the § 207(i) exemption is discussed in 29 C.F.R. § 779.414 , which states: Section 7(i) was enacted to relieve an employer from the obligation of paying overtime compensation to certain employees of a retail or service establishment paid wholly or in…”
Peraro Ex Rel. Castro v. Chemlawn Servs. Corp., 692 F. Supp. 109 (D. Conn. 1988). “29 C.F.R. Section 779.414. Both section 207(i) and section 31 — 76i are laden with FLSA terms of art, and as permitted by 29 U.”
Volpe v. Vmsb, LLC (S.D. Fla. 2025). · cites it 2× “29 C.F.R. § 779.414 (emphasis added). But the regulation does not describe the exemption on its own terms and instead prescribes a certain class of employees for whom the exemption ought to apply.”
Soon Ja Lee v. Zzim USA, Inc. d/b/a Spa World, Et Al. (E.D. Va. 2026). · cites it 2× “The Fourth Circuit has previously found the “best guidance” to be 29 C.F.R. § 779.414 . Id. That provision discusses the types of employees paid by commission: These employees are generally employed in so-called “big ticket” departments and those establishments or parts of…”
Jackson v. R & A Towing, LLC (S.D. Tex. 2023). “” ECF 48 at 27 (citing 29 C.F.R. § 779.414 ). In Taylor, cable technicians were paid by the number of points assigned to a job, no matter how long the job took to complete.”
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