29 C.F.R. § 776.27 Construction Which Is Related to Covered Production

• Library: Code of Federal Regulations
• Edition: 2021 Edition
• Currency: Current through February 28, 2022
• Citation: 29 C.F.R. § 776.27
• Year: 2021

(a) Existing production establishments.

(1) Covered production facilities within the concept of the Act include mines, oil wells banks, manufacturing, packing and processing plants, filtration, sewage treatment, electric power and water plants, shipyards, warehouses in which goods are broken down, packed or handled preparatory to being sent in interstate commerce, and similar establishments.

(2) The repair or maintenance of a covered production unit is essential for its continued operation and has a close and immediate tie with the production of goods for commerce 17 The Act is also applicable to other construction which is an integral part of a covered production unit, such as the replacement, enlargement, reconstruction, extension or other improvement of the premises, the buildings, the machinery, tools and dies and other equipment Functionally such work is like maintenance and repair and is necessary for the continued, efficient and effective operation of the facility as a unit. Thus the construction of new appurtenances of a covered production establishment such as parking aprons, access roads, railroad spurs, drainage ditches, storm waste and sanitary sewers or adjacent integrated buildings is subject to the Act. Similarly, the Act applies to the installation of telephone, electric, gas and water lines, machinery and other equipment on the premises of such a facility 17 Kirschbaum Co. v. Walling, ante; Walling v. McCrady Const. Co., ante.

(3) On the other hand, the production and furnishings, within the State, of construction materials, such as sand, gravel brick and other construction materials produced for general local use, is not covered even if the producer also supplies such materials to construction companies which use them within the State in the repair, maintenance or improvement of facilities for the production of goods for commerce. Employees of the materialman in such a situation would not have such a close and immediate tie to the production of goods for commerce as to be considered "closely related" and "directly essential" to such production. 18 18 See General Coverage Bulletin, 776.19(b)(3); but see 776.19(b)...