# 29 CFR § 779.309: Employed “in” but not “by.”

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-29-779.309

## Section

- **Citation:** 29 CFR § 779.309
- **Heading:** Employed “in” but not “by.”
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** 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 > “Establishment” Basis of Exemptions

## Text

Since the exemptions by their terms apply to the employees “employed by” the exempt establishment, it follows that those exemptions will not extend to other employees who, although actually working in the establishment and even though employed by the same person who is the employer of all under section 3(d) of the Act, are not “employed by” the exempt establishment. Thus, traveling auditors, manufacturers' demonstrators, display-window arrangers, sales instructors, etc., who are not “employed by” an exempt establishment in which they work will not be exempt merely because they happen to be working in such an exempt establishment, whether or not they work for the same employer. (Mitchell v. Kroger Co., 248 F. 2d 935 (CA-8).) For example, if the manufacturer sends one of his employees to demonstrate to the public in a customer's exempt retail establishment the products which he has manufactured, the employee will not be considered exempt under section 13(a)(2) since he is not employed by the retail establishment but by the manufacturer. The same would be true of an employee of the central offices of a chain-store organization who performs work for the central organization on the premises of an exempt retail outlet of the chain (Mitchell v. Kroger Co., supra.)

## Nearby sections

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-29-779.309. Check the current official text before relying on it. Not legal advice.