The Labour Department of the respective states regulates the Shop and Establishment Act in every state. While the Act's general provisions remain consistent across all states, it is the responsibility of the Labour Department to oversee its enforcement. The Act governs the operations of all shops and commercial establishments within the state.

The Act typically defines shops as premises where goods are sold, either at retail or wholesale, or where customer services are provided. Similarly, it defines commercial establishments as establishments related to commerce, banking, trade, insurance, or administrative services, and where individuals are employed for office-related tasks. This definition encompasses establishments like hotels, boarding houses, restaurants, cafes, theaters, and other public entertainment or amusement venues. However, it's important to note that the Act does not cover factories and industries, as these are governed by the Factories Act of 1948 and the Industries (Development and Regulation) Act of 1951.