29 CFR § 779.118 - Employees providing central services for multi-unit organizations.

---
identifier: "/us/cfr/t29/s779.118"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "29 CFR § 779.118 - Employees providing central services for multi-unit organizations."
title_number: 29
title_name: "Labor"
section_number: "779.118"
section_name: "Employees providing central services for multi-unit organizations."
chapter_name: "WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR"
subchapter_number: "B"
subchapter_name: "STATEMENTS OF GENERAL POLICY OR INTERPRETATION NOT DIRECTLY RELATED TO REGULATIONS"
part_number: "779"
part_name: "THE FAIR LABOR STANDARDS ACT AS APPLIED TO RETAILERS OF GOODS OR SERVICES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Secs. 1-19, 52 Stat. 1060, as amended; 75 Stat. 65; Sec. 29(B), Pub. L. 93-259, 88 Stat. 55; 29 U.S.C. 201-219."
regulatory_source: "35 FR 5856, Apr. 9, 1970, unless otherwise noted."
cfr_part: "779"
---


# 779.118 Employees providing central services for multi-unit organizations.

Employees providing central services for a multiunit organization may be engaged both “in commerce” and “in the production of goods for commerce” within the meaning of the Act. For example, employees engaged in work relating to the coordinated purchasing, warehousing and distribution (and in the administrative and clerical work relating to such activities) for various retail units of a chain are covered under the Act. (See *Phillips Co.* v. *Walling,* 324 U.S. 490; *Walling* v. *Jacksonville Paper Co.,* 317 U.S. 564, affirming, 128 F. 2d 935 (CA-5); *Mitchell* v. *C. & P. Stores,* 286 F. 2d 109 (CA-5); *Mitchell* v. *E. G. Shinner & Co.,* Inc., 221 F. 2d 260 (CA-7); *Donovan* v. *Shell Oil Co.,* 168 F. 2d 776 (CA-8).) In addition, employees who regularly and recurrently correspond and maintain records of activities of out-of-State stores and such employees as traveling auditors, inventory men, window display men, etc., who regularly travel from State to State in the performance of their duties are covered under the Act. (See *Mitchell* v. *Kroger Co.,* 248 F. 2d 935 (CA-8).)