Title 29, Part 779 — The Fair Labor Standards Act as Applied to Retailers of Goods or Services

Purpose of interpretative bulletin.

General scope of the Act.

Previous and new coverage.

Pay standards for employees subject to previous coverage of the Act.

Pay standards for newly covered employment.

Matters discussed in this part.

Matters discussed in other interpretative bulletins.

Significance of official interpretations.

Basic support for interpretations.

Reliance on interpretations.

Interpretations made, continued, and superseded by this part.

General statement.

Commerce.

Production.

Goods.

Sale and resale.

State.

Wage and wage payments to tipped employees.

Regular rate.

Employer, employee, and employ.

Person.

Enterprise.

Enterprise engaged in commerce or in the production of goods for commerce.

Establishment.

Retail or service establishment.

Basic coverage in general.

Guiding principles for applying coverage and exemption provisions.

Scope of this subpart.

Employees “engaged in commerce.”

Employees “engaged in the production of goods for commerce.”

Employees engaged in activities “closely related” and “directly essential” to the production of goods for commerce.

Employees employed by an independent employer.

Goods defined.

Goods produced for commerce.

Amount of activities which constitute engaging in commerce or in the production of goods for commerce.

Employees in retailing whose activities may bring them under the Act.

Buyers and their assistants.

Office employees.

Warehouse and stock room employees.

Transportation employees.

Watchmen and guards.

Custodial and maintenance employees.

Salesmen and sales clerks.

Employees providing central services for multi-unit organizations.

Exempt occupations.

Coverage expanded by 1961 and 1966 amendments.

The place of the term “enterprise” in the Act.

Basic concepts of definition.

Distinction between “enterprise,” “establishment,” and “employer.”

Common types of “enterprise.”

Enterprise must consist of “related activities.”

What are “related activities.”

Related activities in retail operations.

Auxiliary activities which are “related activities.”

Vertical activities which are “related activities.”

Other activities which may be part of the enterprise.

Status of activities which are not “related.”

Enterprise must consist of related activities performed for a “common business purpose.”

What is a common business purpose.

“Business” purpose.

General scope of terms.

Statutory construction of the terms.

“Unified operation” defined.

Methods to accomplish “unified operation.”

Unified operation may be achieved without common control or common ownership.

Unified operation may exist as to separately owned or controlled activities which are related.

“Common control” defined.

Ownership as factor.

Control where ownership vested in individual or single organization.

Common control in other cases.

Leased departments.

Exception for an independently owned retail or service establishment under certain franchise and other arrangements.

Conditions which must be met for exception.

Types of arrangements contemplated by exception.

Other arrangements.

Franchise and other arrangements.

Franchise arrangements which do not create a larger enterprise.

Franchise or other arrangements which create a larger enterprise.

Independent contractors performing work “for” an enterprise.

Establishments whose only regular employees are the owner or members of his immediate family.

Other “enterprises.”

In general.

Enterprise engaged in commerce or in the production of goods for commerce.

Engagement in described activities determined on annual basis.

Meaning of “engaged in commerce or in the production of goods for commerce.”

Employees “handling * * * or otherwise working on goods.”

Selling.

Goods that “have been moved in” commerce.

Goods that have been “produced for commerce by any person.”

“Covered enterprises” of interest to retailers of goods or services.

Conditions for coverage of retail or service enterprises.

Inflow test under section 3(s)(1) of the Act prior to 1966 amendments.

“Goods” defined.

Purchase or receive “goods for resale.”

Goods which move or have moved across State lines.

Goods that have not lost their out-of-State identity.

Goods that have lost their out-of-State identity.

Not in deliveries from the reselling establishment.

What is included in computing the total annual inflow volume.

Summary of coverage and exemptions prior to and following the 1966 amendments.

Meaning of “gasoline service establishment.”

Conditions for enterprise coverage of gasoline service establishments.

Exemption applicable to gasoline service establishments under the prior Act.

Sales made or business done.

What is included in annual gross volume.

Trade-in allowances.

Statutory provision.

Excise taxes at the retail level.

Excise taxes not at the retail level.

Excise taxes separately stated.

Basis for making computations.

Methods of computing annual volume of sales or business.

Fluctuations in annual gross volume affecting enterprise coverage and establishment exemptions.

Grace period of 1 month for computation.

Computations for a new business.

Purpose of subpart.

Statutory provisions.

Exemptions depend on character of establishment.

“Establishment” defined; distinguished from “enterprise” and “business.”

Illustrations of a single establishment.

Separate establishments on the same premises.

Leased departments not separate establishments.

Meaning and scope of “employed by” and “employee of.”

Employed within scope of exempt business.

Employed “in” but not “by.”

Employees of employers operating multi-unit businesses.

Employees working in more than one establishment of same employer.

“Retail or service establishment”, defined in section 13(a)(2).

Requirements summarized.

“Goods” and “services” defined.

Traditional local retail or service establishments.

Establishments outside “retail concept” not within statutory definition; lack first requirement.

[Reserved]

Characteristics and examples of retail or service establishments.

A retail or service establishment must be open to general public.

[Reserved]

Inapplicability of “retail concept” to some types of sales or services of an eligible establishment.

Second requirement for qualifying as a “retail or service establishment.”

Particular industry.

Recognition “in.”

Functions of the Secretary and the courts.

Sources of information.

Wholesale sales.

Retail and wholesale distinguished.

Effect of type of customer and type of goods or services.

Third requirement for qualifying as a “retail or service establishment.”

Meaning of sales “for resale.”

Resale of goods in an altered form or as parts or ingredients of other goods or services.

Goods sold for use as raw materials in other products.

Sales of services for resale.

Sales of building materials for residential or farm building construction.

Sales of building materials for commercial property construction.

Requirements of exemption summarized.

Effect of 1961 and 1966 amendments.

More than 50 percent intrastate sales required.

Out-of-State customers.

Sales “made within the State” and “engagement in commerce” distinguished.

Methods of computing annual volume of sales.

Combinations of exemptions.

Exemption provided in section 13(a)(4).

Requirements for exemption summarized.

Exemption limited to “recognized retail establishment”; factories not exempt.

Goods must be made at the establishment which sells them.

The 85-percent requirement.

The section 13(a)(4) exemption does not apply to service establishments.

Exemption provided.

Requirements for exemption.

Basis for classification.

Who may qualify as exempt 13(a)(2) or 13(a)(4) establishments.

Classification of lumber and building materials sales.

Application of exemptions to employees.

May qualify as exempt 13(a)(2) establishments; classification of coal sales.

May qualify as exempt 13(a)(2) or 13(a)(4) establishments.

May qualify as exempt 13(a)(2) establishments.

Classification of liquefied-petroleum-gas sales.

Classification of other fuel oil sales.

May qualify as exempt 13(a)(2) or 13(a)(4) establishments.

May qualify as exempt 13(a)(2) or 13(a)(4) establishments.

May qualify as exempt 13(a)(2) or 13(a)(4) establishments.

May qualify as exempt 13(a)(2) or 13(a)(4) establishments.

Recapping or retreading tires for sale.

Commercial stationers may qualify as exempt 13(a)(2) establishments.

Printing and engraving establishments not recognized as retail.

Funeral home establishments may qualify as exempt 13(a)(2) establishments.

Cemeteries may qualify as exempt 13(a)(2) establishments.

Some automobile, truck, and farm implement establishments may qualify for exemption under section 13(a)(2).

Nonmanufacturing establishments with certain exempt employees under section 13(b)(10).

Establishments within special exceptions or exemptions.

May qualify as exempt 13(a)(2) establishments.

“Hotel” and “motel” exemptions under section 13(b)(8).

May qualify as exempt establishments.

May qualify as exempt establishments.

Restaurants may qualify as exempt 13(a)(2) establishments.

“Restaurant” exemption under section 13(b) (8).

Exemption provided for food or beverage service employees.

Purpose of subpart.

Statutory provision.

“Executive” and “administrative” employees defined.

Administrative and executive employees in covered enterprises employed in other than retail or service establishments.

Other section 13(a)(1) employees employed in covered enterprises.

Statutory provisions.

“Student-learners”.

Learners other than “student-learners”.

“Full-time students”.

Handicapped workers.

Statutory provision.

Employee of a “retail or service establishment”.

Compensation requirements for overtime pay exemption under section 7(i).

Methods of compensation of retail store employees.

Types of employment in which this overtime pay exemption may apply.

Computing employee's compensation for the representative period.

What compensation “represents commissions.”

The “representative period” for testing employee's compensation.

Grace period for computing portion of compensation representing commissions.

Dependence of the section 7(i) overtime pay exemption upon the level of the employee's “regular rate” of pay.

Recordkeeping requirements.

Basic rate for computing overtime compensation of nonexempt employees receiving commissions.

Purpose of subpart.

Statutory provisions.

Statutory provisions; regulations in part 1500 of this title.

The retailer and section 12(a).

The retailer and section 12(c).

“Oppressive child labor” defined.

Sixteen-year minimum.

Fourteen-year minimum.

Eighteen-year minimum.

Statutory provision.

Conditions that must be met for section 13(b)(11) exemption.

“Finding by Secretary.”

The recordkeeping regulations.

Order and form of records.

Period for preserving records.

Regulations should be consulted.