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17. Your executive secretary has also reminded the Administration that Goodwill Industries are very definitely retail establishments and might be exempted under the retail stores exemption in the Fair Labor Standards Act itself, but here again, the Administration suggested that Goodwill Industries, while they might be engaged in retail trade, yet they did possess material after collecting and before selling it direct to the consumer, and this might exclude them from exemption as retail stores, except for the sales activities of the stores.

18. It appears to your executive secretary that it will be extremely wise for every Goodwill Industries to make application for a Sheltered Workshop Certificate in order that any activities within the Goodwill Industries that may finally be interpreted as being in interstate commerce may have such "protection" as is given by a Sheltered Workshop certificate. It is further suggested that even though some Goodwill Industries may at the present time be meeting the 30cts minimum wage and the 42 hour maximum week (and there are several that are), even such Goodwill Industries should make application for a Sheltered Workshop certificate, for eventually the minimum wage rate does go to 40cts and maximum hours are reduced to 40 per week, it is possible that even those Goodwill Industries may now be able to pay the minimum rate, conditions at the time the higher minimum rate goes into effect may be such that the Industries would be unable to pay the higher rate. If such should be the case then those Goodwill Industries should have the benefit of a Sheltered Workshop certificate. Still further reason for securing a Sheltered Workshop certificate, even though only a small part of the activities may actually be in interstate commerce, is the fact that eventually there will undoubtedly be Fair Labor Standards Acts in many states and then all activities of Goodwill Industries in those particular states would be governed by minimum wages and maximum hours. It will be to the advantage of the local Goodwill Industries to have a Federal Sheltered Workshop certificate if and when such situation occurs.

19. Finally we would again review the steps through which Goodwill Industries should go in securing a special Sheltered Workshop certificate:

a. A temporary certificate of exemption for handicapped individuals employed by Sheltered Workshop issued several months ago definitely expires March 1, 1940.

b. All Sheltered Workshops which have filed with the Wage and Hour Division a form known as "Notice of Intention to file Formal Application for Shelter Workshop Certificate", do have that temporary exemption continued until thirty days after they have received the regular application form upon which to make application for a Sheltered Workshop certificate, or until such time after they have made formal application for a Sheltered Workshop Certificate as they have received their Sheltered Workshop Certificate or been notified that they have been denied a Sheltered Workshop Certificate.

c. Immediately upon receipt of the formal application form upon which to make application for a Sheltered Workshop certificate. Goodwill Industries should fill in the application and return it to the Wage and Hour division, providing they are going to make application for a Sheltered Workshop certificate. Should they, by chance, decide not to make application for a Sheltered Workshop certificate the responsibility will be upon the local Goodwill Industries for such action and should it be found that any of their activities are in interstate commerce and they have violated provisions of the Fair Labor Standards Act, they would be liable in the same way that any commercial organization that had violated any of the provisions. Further, should any Goodwill Industries determine not to make application for a Sheltered Workshop certificate, the temporary exemption covering them as a Sheltered Workshop automatically expires thirty days after they have received the formal application blank upon which to apply for the Sheltered Workshop certificate.

20. It is the understanding of your executive secretary that the general policies which will determine the sub-minimum rates for each type of Sheltered Workshops will be discussed and recommended by the Sheltered Workshop Advisory Committee and further the individual advisory committee member, who is most familiar with any particular type of Sheltered Workshop will be designated by the committee to be the special representative of the committee in connection with activities concerning that type of Workshop. Should this be the case it would appear that your executive secretary would be the clearance of the Sheltered Workshop committee through which they and the Administration would seek to learn anything essential upon which to base the special requirements covering Goodwill Industries. Likewise in cases of violation, misunderstandings, etc., your executive secretary would be notified as well as the local Goodwill Industries involved.