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  2. A retail establishment is an establishment 75% of whose annual dollar volume of sales is not for resale and is recognized as retail in the particular industry. The Wage and Hour Division applies the analysis in 29 CFR Part 779 to all establishments when determining whether an establishment qualifies as a retail establishment.
    www.dol.gov/agencies/whd/fact-sheets/6-flsa-retail
    www.dol.gov/agencies/whd/fact-sheets/6-flsa-retail
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    What is a retail and service establishment?Retail and service establishments are defined as establishments 75% of whose annual dollar volume of sales of goods or services (or of both) is not for resale and is recognized as retail sales or services in the particular industry.
    What is a retail or service establishment exemption?The retail or service establishment exemptions provide exemption only from sections 6 and 7. They do not provide exemption from the child labor and recordkeeping provisions of the Fair Labor Standards Act (FLSA). See 29 CFR 779.500 -.515. 21a05 (Reserved.) 21a06 Employees employed in the work of more than one establishment of the same employer.
    Are employees of retail establishments covered by the Act?Employees of retail establishments may be covered by the Act in either of two ways. Any retail establishment that is part of an enterprise with an annual dollar volume of sales of at least $500,000 (exclusive of excise taxes at the retail level that are separately stated) must abide by the Act's requirements.
    What does the new DOL rule mean for a business?This new rule – which took effect immediately – repeals two lists that the DOL used for decades to interpret the exemption. The first list categorized businesses which lacked “retail concept,” thus disqualifying the business from the exemption; the second list denoted establishments which “may be recognized as retail.”
     
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