29 CFR 779.327 : Labor (§ 0.735-1 To Parts 4908-4999) — (§ 500.0 To Parts 871-899) — Regulations Relating To Labor (Continued) (§ 500.0 To Parts 871-899) — Wage And Hour Division, Department Of Labor (§ 500.0 To Parts 871-899) — Statements Of General Policy Or Interpretation Not Directly Related To Regulations (§ 775.0 To § 794.144) — The Fair Labor Standards Act As Applied To Retailers Of Goods Or Services (§ 779.0 To § 779.515) — Exemptions For Certain Retail Or Service Establishments (§ 779.300 To § 779.388) — “Recognized” As Retail “In The Particular Industry” (§ 779.322 To § 779.329) — Wholesale sales.

A wholesale sale, of course, is not recognized as a retail sale. If an establishment derives more than 25 percent of its annual dollar volume from sales made at wholesale, it clearly cannot qualify as a retail and service establishment. It must be remembered, however, that what is a retail sale for purposes of a sales tax law is not necessarily a retail sale for purposes of the statutory definition of the term “retail or service establishment”. Similarly, a showing that sales of goods or services are not wholesale or are made to the ultimate consumer and are not for resale does not necessarily prove that such sales or services are recognized in the particular industry as retail. (Wirtz v. Steepleton General Tire Co., 388 U.S. 190.)