(a) As stated in Sec. 779.338, the special exceptions provided in
the 1961 amendments for hotels, motels, restaurants, hospitals,
institutions for the sick, the aged, the mentally ill or defective, and
schools for physically or mentally handicapped or gifted children have
been removed. Seasonally operated amusement or recreational
establishments and motion picture theaters also no longer are
specifically exempt under section 13(a)(2), but have specific exemptions
set out for them in sections 13(a)(3) and 13(a)(9) of the Act as amended
in 1966.
(b) Hotels, motels, and restaurants continue to be eligible for
exemption under section 13(a)(2), but must meet all the requirements of
that section for exemption in the same manner as other retail or service
establishments. However, a special overtime exemption is provided for
such establishments, regardless of size, in the first part of section
13(b)(8). Hospitals, residential care establishments, and schools for
physically or mentally handicapped or gifted children are specifically
excluded by the Act from consideration for exemption under section
13(a)(2); however, residential care establishments are exempt from the
overtime pay requirements of the Act under the second part of section
13(b)(8) as long as overtime premium of not less than one and one-half
times the employee's regular rate of pay is paid to him for time worked
in excess of 48 hours in the workweek. In addition, section 7(j) of the
amended Act provides a special overtime arrangement for hospital
employees whereby overtime pay is due an employee after 8 hours in a day
or 80 hours in a 14-day work period rather than on the basis of the 7-
day workweek as is normally required by the Act. This provision, though,
requires an agreement or understanding on the part of both the employer
and the employee prior to the performance of the work. See Sec. 778.601
of this chapter.
(c) The amendments of 1966 also repealed the exemption from both the
minimum wage and overtime pay provisions which was in the Act for
certain food service employees employed by retail or service
establishments that were not exempt under section 13(a)(2). This
exemption (formerly found in section 13(a)(20) is now an exemption from
the overtime provisions only and is set out in section 13(b)(18). Those
establishments now excluded by the Act from consideration for exemption
under section 13(a)(2) (hospitals, residential care establishments,
etc.) may utilize this exemption where they meet the Act's definition of
retail or service establishment in the last sentence of section 13(a)(2)
and the conditions set out in section 13(b)(18). Likewise, the special
exemption for any employee of a retail or service establishment
primarily engaged in the business of selling automobiles, trucks, or
farm implements was repealed by the 1966 amendments. In its stead the
overtime exemption set out in section 13(b)(10) and previously discussed
in Sec. 779.372 was provided for certain employees of any
nonmanufacturing establishment primarily engaged in the business of
selling automobiles, trailers, trucks, farm implements, or aircraft to
the ultimate consumer.
(d) A special exemption from the overtime pay requirements is also
included in the amended Act for bowling establishments which do not meet
the tests under section 13(a)(2) for exemption as a retail or service
establishment. Section 13(b)(19) states that the overtime pay
requirements of the Act shall not apply with respect to ``any employee
of a bowling establishment if such employee receives compensation for
employment in excess of 48 hours in any workweek at a rate not less than
one and one-half times the regular rate at which he is employed.''
Unlike the overtime pay exemption in section 13(b)(18), this exemption
is not dependent upon the establishment meeting the definition of retail
or service establishment.
