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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 779.346 - Requirements for exemption summarized.

  • Section Number: 779.346
  • Section Name: Requirements for exemption summarized.

    An establishment to qualify for exemption under section 13(a)(4) 
must be an exempt retail establishment under section 13(a)(2); that is, 
75 percent of its annual dollar volume of sales of goods must not be for 
resale, 75 percent of its annual dollar volume of sales of goods must be 
recognized as retail in its industry, over 50 percent of its annual 
dollar volume of sales of goods must be made within the State in which 
the establishment is located, and its annual dollar volume of sales must 
be under $250,000. In addition, the establishment must meet the 
following three tests:
    (a) The establishment must be recognized as a retail establishment 
in the particular industry.
    (b) The goods which the exempt establishment makes or processes must 
be made or processed at the establishment which sells the goods.
    (c) More than 85 percent of the establishment's annual dollar volume 
of sales of the goods which it makes or processes must be made within 
the State in which the establishment is located. (See Act, section 
13(a)(2); H. Rept. No. 1453, 81st Cong. first session, p. 27; Arnold v. 
Ben Kanowsky, Inc., 361 U.S. 388.)
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