Retail Exemption Decision Tree
Do you distribute chemicals that
qualify as a PSM regulated chemical?
(see Kestrel PSM 1% decision tree)
No
You do not fall under the PSM standard
and thus Retail Exemption does not
apply
Yes
Determine what
your primary NAICS
Code is?
Does your NAICS classification fall
under Sectors of 44 or 45?
No
Do you have secondary activities that
may be classified under Sectors 44 or
45?
Yes
Retail exemption applies and you do
not need to follow PSM standards
Yes
NOTES:
 Retail trade characterization: establishments engaged in retailing
merchandise, generally without transformation and rendering services
incidental to the sale of merchandise. The retailing process is the final step in
the distribution of merchandise; retailers are therefore organized to sell
merchandise in small quantities to the general public.
 Retail exemption only applies to NAICS sectors 44-45.
 The manufacturing of chemicals is not a retail trade activity (NAICS 44, 45)
 Chemical manufacturer’s typical are classified in the NAICS 325 Subsector.
 Percent of product sold to an end user is now irrelevant
 Service stations, gasoline stations and gasoline stations with convenience
stores are in the retail trades because flammable liquid is sold to the general
public in small allotments (i.e. 5 to 50 gallons) which is consistent with intent
of standard.
 LP gas wholesalers are not eligible for exemption
 Effective July 22, 2015 OSHA rescinded all prior policy documents, letters of
interpretation and memoranda related to the retail exemption and the 50%
test.
No
Retail exemption DOES NOT apply and
you must follow PSM standards.