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- Code of Federal Regulations
- 2023 Edition
- Title 29. Labor
- Subtitle B. Regulations Relating to Labor
- Chapter V. Wage and Hour Division, Department of Labor
- Subchapter B. Statements of General Policy Or Interpretation Not Directly Related to Regulations
- Part 779. The Fair Labor Standards Act As Applied to Retailers of Goods Or Services
- Subpart D. Exemptions For Certain Retail Or Service Establishments
- Engaging In Manufacturing and Processing Activities; Section 13(a)(4)
29 C.F.R. § 779.348 Goods Must Be Made At the Establishment Which Sells Them
Library | Code of Federal Regulations |
Edition | 2023 |
Currency | Current through October 31, 2023 |
(a) Further to make certain that the exemption applies to retail establishments only and not to factories, an additional requirement of the exemption is that the goods which the exempt establishment makes or processes must be made or processed at the establishment which sells the goods. The exemption does not apply to an establishment which makes or processes goods for sale to customers who will go to other places to buy them. Thus an establishment that makes or processes any goods which the employer will sell from another establishment, is not exempt. If the establishment making the goods does not sell such goods but makes them for the purpose of selling them at other establishments the establishment making the goods is a factory and not a retail establishment.
(b) Where the making or processing of the goods takes place away from the selling establishment, the section 13(a)(4) requirement that both the making or processing and selling take place at the same establishment cannot be met. This will be true even though the place at which the goods are made or processed services the retail selling establishment exclusively. In such a situation, while the selling establishment may qualify for exemption under section 13(a)(2), the separate establishment at which the goods are...
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