# 29 C.F.R. § 779.306 (2026): Leased departments not separate establishments

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_306

## Section

- **Citation:** 29 C.F.R. § 779.306 (2026)
- **Heading:** Leased departments not separate establishments
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 29 CFR: Labor / Chapter V: WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR / Part 779: THE FAIR LABOR STANDARDS ACT AS APPLIED TO RETAILERS OF GOODS OR SERVICES / Subpart D: Exemptions for Certain Retail or Service Establishments / § 779.306: § 779.306   Leased departments not separate establishments.

## Text

It does not follow from the principles discussed in § 779.305 that leased departments engaged in the retail sale of goods or services in a departmentalized store are separate establishments. To the contrary, it is only in rare instances that such leased departments would be separate establishments for purposes of the exemptions. For example, take a situation where the departmentalized retail store, having leased departments, controls the space location, determines the type of goods that may be sold, determines the pricing policy, bills the customers, passes on customers' credit, receives payments due, handles complaints, determines the personnel policies, and performs other functions as well. In such situations the leased department is an integral part of the retail store and considered to be such by the customers. It is clear that such departments are not separate establishments but rather a part of the retail store establishment and will be considered as such for purposes of the exemptions. The same result may follow in the case of leased departments engaged in the retail sale of goods or services in a departmentalized store where all or most of the departments are leased or otherwise individually owned, but which operate under one common trade name and hold themselves out to the public as one integrated business unit.

## Nearby sections

- [29 C.F.R. § 779.300 (2026) § 779.300   Purpose of subpart.](https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_300.md)
- [29 C.F.R. § 779.301 (2026) § 779.301   Statutory provisions.](https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_301.md)
- [29 C.F.R. § 779.302 (2026) § 779.302   Exemptions depend on character of establishment.](https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_302.md)
- [29 C.F.R. § 779.303 (2026) § 779.303   “Establishment” defined; distinguished from “enterprise” and “business.”](https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_303.md)
- [29 C.F.R. § 779.304 (2026) § 779.304   Illustrations of a single establishment.](https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_304.md)
- [29 C.F.R. § 779.305 (2026) § 779.305   Separate establishments on the same premises.](https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_305.md)
- [29 C.F.R. § 779.306 (2026) § 779.306   Leased departments not separate establishments.](https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_306.md)
- [29 C.F.R. § 779.307 (2026) § 779.307   Meaning and scope of “employed by” and “employee of.”](https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_307.md)
- [29 C.F.R. § 779.308 (2026) § 779.308   Employed within scope of exempt business.](https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_308.md)
- [29 C.F.R. § 779.309 (2026) § 779.309   Employed “in” but not “by.”](https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_309.md)
- [29 C.F.R. § 779.310 (2026) § 779.310   Employees of employers operating multi-unit businesses.](https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_310.md)
- [29 C.F.R. § 779.311 (2026) § 779.311   Employees working in more than one establishment of same employer.](https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_311.md)
- [29 C.F.R. § 779.312 (2026) § 779.312   “Retail or service establishment”, defined in section 13(a)(2).](https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_312.md)
- [29 C.F.R. § 779.313 (2026) § 779.313   Requirements summarized.](https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_313.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T29_P779_S779_306. Check the current official text before relying on it. Not legal advice.