(a) Some automotive tire establishments engage in recapping and
retreading work on tires which the establishment expects to sell in
their reconditioned form. Such activities are not performed as a service
for a customer but constitute manufacturing goods for sale. Employees
performing such work may be exempt only if they are employed by an
establishment which meets all the requirements of the 13(a)(4)
exemption.
(b) For purposes of meeting the retail recognition requirement of
section 13(a)(4), an establishment engaged in retreading or recapping of
tires which qualifies for exemption under section 13(a)(2) is recognized
as a retail establishment in the industry if not more than 50 percent of
the annual dollar volume of its sales resulting from its retreading and
recapping operations comes from the sale of tires retreaded and recapped
for sale.
