(a) An establishment engaged in providing frozen-food locker service
to farmers and other private individuals and rendering services thereto
may qualify as an exempt retail or service establishment under section
13(a)(2) of the Act if it meets all the requirements of that exemption.
Similarly, a frozen-food locker plant which also engages in slaughtering
and dressing livestock or poultry for sale may qualify as an exempt
establishment under section 13(a)(4) of the Act if it meets all the
requirements of that exemption.
(b) Activities of frozen-food locker plants. Frozen-food locker
plants provide locker service for the cold storage of frozen meats,
fruits, and vegetables and engage in incidental activities such as the
cutting of meat, cleaning, packaging or wrapping and quick freezing, of
meats, fruits, or vegetables for such locker service. In such
establishments lockers are rented principally to farmers and other
private individuals for the purpose of storage by them of such goods for
their own personal or family use. Storage space and related services may
also be provided for business or commercial use such as to hotels,
stores or restaurants, or to farmers or other customers who use it to
store meat and other goods for future sale. Such locker plants may also
engage in such activities as the custom slaughtering and dressing of
livestock or poultry and the curing, smoking, or other processing of
meat owned by farmers and other private individuals for storage by those
customers either in their home freezers or in locker plants for the
customers' personal or family use. The custom slaughtering or processing
activities of such locker establishments may be performed on the
premises of the establishments or at some location away from the
establishment.
(c) Classification of sales. In determining whether, under the
13(a)(2) exemption, 75 percent of the establishment's sales are not for
resale and are recognized as retail sales in the industry, the receipts
from the locker service and the incidental activities mentioned in the
first sentence of this section and from the slaughtering, dressing, or
other processing of livestock or poultry performed for farmers and other
private individuals for their own use, but not where the goods are to be
sold to others by the customer, will be counted as receipts from sales
of services recognized as retail in the industry. Receipts from
commercial storage and activities incidental thereto and from the sale
of hides, offal or other byproducts will be counted as receipts from
sales of goods or services made for resale or which are not recognized
as retail sales of goods or services in the industry.
(d) Some locker plant establishments also include a meat market of
the type which slaughters its own livestock or poultry (as distinguished
from the slaughtering performed as a service to customers on the
customers' own livestock) and processes such meat for sale
by it to the general public. In performing such operations as the
slaughtering, curing, and smoking of meat and the rendering of fats for
sale, the establishment is making or processing goods that it sells and
is not performing retail services for its customers. Employees engaged
in these activities in such an establishment, therefore, are not exempt
under section 13(a)(2) but may be exempt if the establishment meets the
tests of a combination 13(a)(2)-13(a)(4) exemption in accordance with
the principles stated in Sec. 779.343. As a general rule, such a meat
market which slaughters its own livestock and sells its meat to the
general public is a type of establishment which may be recognized as a
retail establishment in the industry within the meaning of the 13(a)(4)
exemption. Whether a particular establishment, however, is so recognized
depends upon the facts of the case. It should be noted that where such
slaughtering, curing or smoking is, for any reason, performed away from
the premises of the establishment where the meat is sold, the employees
engaged in such activities are not employees employed by a retail
establishment which ``makes or processes at the retail establishment the
goods that it sells'' within the meaning of the 13(a)(4) exemption and
cannot, therefore, be exempt under that section.
Automotive Tire Establishments
