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CFR  

Code of Federal Regulations Pertaining to ESA

Title 29  

Labor

 

Chapter V  

Wage and Hour Division, Department of Labor

 

 

Part 779  

The Fair Labor Standards Act As Applied to Retailers of Goods or Services

 

 

 

Subpart D  

Exemptions for Certain Retail or Service Establishments


29 CFR 779.301 - Statutory provisions.

  • Section Number: 779.301
  • Section Name: Statutory provisions.

    (a) Section 13(a) (2), (4), (11), and section 13(b)(18) of the Act, 
as amended, grant exemption from the minimum wage provisions of section 
6 and the maximum hours provisions of section 7 as follows:
    (1) Section 13(a)(2) exempts from minimum wages and overtime pay:

    Any employee employed by any retail or service establishment (except 
an establishment or employee engaged in laundering, cleaning, or 
repairing clothing or fabrics or an establishment engaged in the 
operation of a hospital, institution, or school described in section 
3(s)(4), if more than 50 per centum of such establishment's annual 
dollar volume of sales of goods or services is made within the State in 
which the establishment is located, and such establishment is not in an 
enterprise described in section 3(s) or such establishment has an annual 
dollar volume of sales which is less than $250,000 (exclusive of excise 
taxes at the retail level which are separately stated). A ``retail or 
service establishment'' shall mean an establishment 75 per centum of 
whose annual dollar volume of sales of goods or services (or of both) is 
not for resale and is recognized as retail sales or services in the 
particular industry.

    (2) Section 13(a)(4) exempts from minimum wages and overtime pay:

    Any employee employed by an establishment which qualifies as an 
exempt retail establishment under clause (2) of this sub-section and is 
recognized as a retail establishment in the particular industry 
notwithstanding that such establishment makes or processes at the retail 
establishment the goods that it sells: Provided, That more than 85 per 
centum of such establishment's annual dollar volume of sales of goods so 
made or processed is made within the State in which the establishment is 
located.

    (3) Section 13(a)(11) exempts from minimum wages and overtime pay:

    Any employee or proprietor in a retail or service establishment 
which qualifies as an exempt retail or service establishment under 
clause (2) of this subsection with respect to whom the provisions of 
sections 6 and 7 would not otherwise apply, engaged in handling 
telegraphic messages for the public under an agency or contract 
arrangement with a telegraph company where the telegraph message revenue 
of such agency does not exceed $500 a month.

    (4) Section 13(b)(18) exempts from overtime pay only:

    Any employee of a retail or service establishment who is employed 
primarily in connection with the preparation or offering of food or 
beverages for human consumption, either on the premises, or by such 
services as catering, banquet, box lunch, or curb or counter service, to 
the public, to employees, or to members or guests of members of clubs.

    (b) Sections 13(a)(2), (4), (13), (19), and (20) of the prior Act 
granted exemptions from both the minimum wage provisions of section 6 
and the maximum hours provisions of section 7 as follows:
    (1) Section 13(a)(2) exempted:

    Any employee employed by any retail or service establishment, more 
than 50 per centum of which establishment's annual dollar volume of 
sales of goods or services is made within the state in which the 
establishment is located, if such establishment--
    (i) Is not in an enterprise described in section 3(s), or
    (ii) Is in such an enterprise and is a hotel, motel or restaurant, 
or motion picture theater; or is an amusement or recreational 
establishment that operates on a seasonal basis, or
    (iii) Is in such an enterprise and is a hospital, or an institution 
which is primarily engaged in the care of the sick, the aged, the 
mentally ill or defective, residing on the premises of such institution, 
or a school for physically or mentally handicapped or gifted children, 
or
    (iv) Is in such an enterprise and has an annual dollar volume of 
sales (exclusive of excise taxes at the retail level which are 
separately stated) which is less than $250,000.

A ``retail or service establishment'' shall mean an establishment 75 per 
centum of whose annual dollar volume of sales of goods or services (or 
both) is not for resale and is recognized as retail sales or services in 
the particular industry.

    (2) Section 13(a)(4) provided the same exemption as it now does.
    (3) Section 13(a)(13) provided the same exemption as section 
13(a)(11) of the present Act.
    (4) Section 13(a)(19) exempted:

    Any employee of a retail or service establishment which is primarily 
engaged in the business of selling automobiles, trucks, or farm 
implements.


    (5) Section 13(a)(20) exempted those employees who are now exempt 
from the overtime provisions only under section 13(b)(18) of the present 
Act.
    (c) Employees who were exempt from the minimum wage and overtime pay 
requirements under a provision of the prior Act set forth in paragraph 
(b) of this section, but are no longer exempt from one or both of such 
requirements under the present Act must be paid minimum wages or 
overtime pay, as the case may be, in accordance with the pay standards 
provided for newly covered employment, in any workweek when they perform 
work within the individual or enterprise coverage of the Act.
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