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Legal Definitions - service establishment
Definition of service establishment
A service establishment, as defined under the Fair Labor Standards Act (FLSA), refers to a business that primarily provides services to the general public, rather than focusing on the sale of physical goods. While such an establishment may operate in a storefront or have characteristics similar to a retail store, its core function is to deliver a specific service directly to consumers.
Here are some examples illustrating a service establishment:
A local fitness center or gym: This business offers memberships that grant access to exercise equipment, fitness classes, and personal training sessions. Although it might sell some merchandise like water bottles or branded apparel, its main revenue and purpose come from providing health and wellness services to its members.
This illustrates a service establishment because its primary offering is the provision of facilities and instruction (services) for physical fitness, not the sale of tangible products.
A veterinary clinic: This type of establishment provides medical care, check-ups, vaccinations, and surgical procedures for pets. While it might sell some pet food or medications as a convenience, its fundamental role is to deliver professional animal healthcare services.
This example fits the definition as the clinic's core business is the provision of specialized medical services for animals, not the retail sale of pet products.
A professional photography studio: This business offers services such as portrait sessions, event photography, photo editing, and digital image delivery. While it might offer prints or albums as part of a package, its main value proposition is the photographer's skill and the creation of images.
This demonstrates a service establishment because its primary function is to provide artistic and technical photography services, capturing moments and delivering digital or physical representations, rather than selling pre-made goods off a shelf.
Simple Definition
Under the Fair Labor Standards Act (FLSA), a "service establishment" is a business that primarily furnishes services to the public. Although it may possess characteristics similar to a retail store, its core function is the provision of services rather than the sale of goods.