29 CFR § 780.407 - System must be nonprofit or operated on a share-crop basis.

---
identifier: "/us/cfr/t29/s780.407"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "29 CFR § 780.407 - System must be nonprofit or operated on a share-crop basis."
title_number: 29
title_name: "Labor"
section_number: "780.407"
section_name: "System must be nonprofit or operated on a share-crop basis."
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: "780"
part_name: "EXEMPTIONS APPLICABLE TO AGRICULTURE, PROCESSING OF AGRICULTURAL COMMODITIES, AND RELATED SUBJECTS UNDER THE FAIR LABOR STANDARDS ACT"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Secs. 1-19, 52 Stat. 1060, as amended; 75 Stat. 65; 29 U.S.C. 201-219. Pub. L. 105-78, 111 Stat. 1467."
regulatory_source: "37 FR 12084, June 17, 1972, unless otherwise noted."
cfr_part: "780"
---


# 780.407 System must be nonprofit or operated on a share-crop basis.

The exemption does not apply to employees employed in the described operations on facilities of any irrigation system unless the ditches, canals, reservoirs, or waterways in connection with which their work is done meet the statutory requirement that they either be not owned or operated for profit, or be operated on a share-crop basis. The employer is paid on a share-crop basis when he receives, as his total compensation, a share of the crop of the farmers serviced.