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  2. A “retail or service establishment” shall mean an establishment 75 per centum 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.
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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.
    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.
    Does the FLSA apply to employees of the retail industry?This fact sheet provides general information concerning the application of the FLSA to employees of the retail industry. 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.
    Did the Dol change the definition of a retail or service establishment?The answer to this questionmight have just changed based on the Department of Labor’s (DOL) recent regulatory action. Since 1961, the answer was often determined by an “incomplete, arbitrary, and essentially mindless catalog” of establishments that the DOL identified as falling within or outside what it deemed a retail or service establishment.
     
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