29 CFR § 779.347 The Fair Labor Standards Act as Applied to Retailers of Goods or Services

§ 779.347 Exemption limited to “recognized retail establishment”; factories not exempt.

Current through Sep 30, 2026 · Read all of Part 779

The section 13(a)(4) exemption requires the establishment to be recognized as a retail establishment in the particular industry. This test limits the exemption to retail establishments only, and excludes factories as such and establishments to which the retail concept does not apply. In other words this test requires that the establishment as a whole be recognized as a retail establishment although it makes or processes at the establishment the goods it sells. Typical of the establishment which may be recognized as retail establishments under the exemption are custom tailor shops, candy shops, ice cream parlors, bakeries, drug stores, optometrist establishments, retail ice plants and other local retail establishments which make or process the goods they sell and meet the other tests for exemption. Clearly factories as such are not “recognized retail establishments” and would not be eligible for this exemption. (See 95 Cong. Rec. pp. 11001, 11200, 11216, and 14942.)

← § 779.346 Requirements for exemption summarized.§ 779.348 Goods must be made at the establishment which sells them. →