FAIR LABOR STANDARDS AMENDMENTS OF 1978

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000600150001-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 35
• Document Creation Date: December 9, 2016
• Document Release Date: September 8, 2000
• Sequence Number: 1
• Publication Date: July 28, 1978
• Content Type: OPEN

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93D CONGRESS SENATE REPORT
1st session 93-358
FAIR LABOR STANDARDS AMENDMENTS OF 1973
JULY 28, 1973.-Ordered to be printed
Mr. WILLIAMS, from the committee of conference,
submitted the following
CONFERENCE REPORT
The committee of conference on the disagreeing votes of the two
Houses on the amendment of the Senate to the bill (H.R. 7935) to
amend the Fair Labor Standards Act of 1938 to increase the minimum
wage rates under that Act, to expand the coverage of that Act, and
for other purposes, having met, after full and free conference, have
agreed to recommend and do recommend to their respective Houses
as follows:
That the House recede from its disagreement to the amendment of
the Senate and agree to the same with an amendment as follows:
In lieu of the matter proposed to be inserted by the Senate amend-
ment insert the following:
. SECTION 1. (a) This Act may be cited as the "Fair Labor Standards
Amendments of 1973".
(b) Unless otherwise specified, whenever in this Act an amendment or
repeal is expressed in terms of an amendment to, or repeal of, a 1section
or other provision, the section or other provision amended or repealed
is a section or other provision of the Fair Labor Standards Act of 1938
(29 U.S.C. 201-219).
SEC. 2. Section 6(a)(1) is amended to read as follows:
"(1) not less than 82 an hour during the period ending June 30,
1974, and not less than $2.20 an hour after June 30, 1974, except
as otherwise provided in this section;".
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INCREASE LV MINIMUM' WAGV RATE FOR NONAGRICULTURAL EMPLOYEES
COVERED IN 19;6 AND 1973
SEC. 3. Section 6(b) is amended (1) by inserting ", title IX of the
Education Amendments of 1972, or the Fair Labor Standards Amend-
ments q f 1973" after "1966", and (2) by striking out paragraphs (1)
through (5) and inserting in lieu thereof the following:
"(1) not less than $1.80 an hour during the period ending June
30, 1974,
"(2) not less than $2 an hour during the year beginning July 1,
1974, and
"(3) not less than $2.20 an hour after June 30, 1975."
INCREASES IN MINIMUM WAGE RATE FOR AGRICULTURAL EMPLOYEE S
SEC. 4. Section 6(a) (5) is amended to read as follows:
"(5) if such employee is Employed in agriculture, not less than-
",A) $1.6 , an hour during the period ending June 30, 1974,
"(B) $1.80 an hour during the year beginning July 1, 1974,
"(( ) $2 an hour dur.ng the year beginning July 1, 1975, and
"(D) $2.2Q an hour after June 30, 1976."
INCREASE IY MINIMUM WAGE RATES FOR EMPLOYEES IN PUERTO RICO AND
THF. VIRGIN ISLANDS
SEC. 5. (a) Section 5 is amended by adding at the end thereof the
following new subsection:
"(e) The provisions of this section, section 6(c), and section 8 shall
not apply with respect to the minimum wage rate of any employee em-
ployed in Puerto Rico or the Virgin Islands (1) by the United States
or by the government of the Virgin Islands, (2) by an establishment which
is a hotel, motel, or restaurant, or (3) by any other retail or service establish-
ment which employs such employee primarily in connection with the
preparation or offering of food or beverages for human consumption,
either on the premises, or by such services as catering, banquet, box
lunch, or curb or counter service, to the public, to employees, or to members
or guests of members of clubs. The minimum wage rate of such an em-
ployee shall be determined under this Act in the same manner as the
minimum wage rate for employees employed in a State of the United
States is determined under this Act. As used in the preceding sentence,
the term `State' does not include a territory or possession of the United
States."
(b) Effective on the date of the enactment of the Fair Labor Standards
Amendments of 1973, subsection (c) of section 6 is amended by striking
out paragraphs (2), (3), and (4) and inserting in lieu thereof the following:
(2) Except as provided in paragraphs (4) and (5), in the case of any
employee who is covered by such a wage order on the date of enactment of
the Fair Labor Standards Amendments of 1973 and to whom the rate or
rates prescribed by subsection (a) or (b) would otherwise apply, the -wage
rate applicable to such employee shall be increased as follows:
"(A) Effective on the effective date of the Fair Labor Stand-
ards Arnendmentsfof 1913, the wage order rate applicable to such
employee on the day before such date shall-
" (i) if such rate is under $1.40 an hour, be increased by
X0.1 ' an hour,i and
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"(ii) if such rate is $1.40 or more an hour, be increased by
$0.15 an hour,
except that, in the case of an employee whose wage order rate was
increased (pursuant to the recommendations of a special industry
committee convened under section 8) during the period beginning
on July 26, 1973, and ending before the effective date of the Fair
Labor Standards Amendments of 1973, the wage order rate appli-
cable to such employee shall be increased only if the amount of the
increase during such period was less than the otherwise applicable
increase prescribed by clause (i) or (ii) of this subparagraph and
only to the extent of the difference between the increase during
such period and such otherwise applicable increase.
"(B) Effective on the first day of the second and each subsequent
year after such date, the highest wage order rate applicable to such
employees on the day before such first day shall-
"(i) if such rate is under $1.40 an hour, be increased by
$0.12 an hour, and
"(ii) if such rate is $1.40 or more an hour, be increased by
$0.15 an hour.
In the case of any employee employed in agriculture who is covered by a
wage order issued by the Secretary pursuant to the recommendations of a
special industry committee appointed pursuant to section 5, to whom the
rate or rates prescribed by subsection (a) (5) would otherwise apply, and
whose hourly wage is increased above the wage rate prescribed by such
wage order by a subsidy (or income supplement) paid, in whole or in
part, by the government of Puerto Rico, the increases prescribed by this
paragraph shall be applied to the sum of the wage rate in effect under
such wage order and the amount by which the employee's hourly wage
rate is increased by the subsidy (or income supplement) above the wage
rate in effect under such wage order.
"(3) In the case of any employee employed in Puerto Rico or the
Virgin Islands to whom this section is made applicable by the amendments
made to this Act by the Fair Labor Standards Amendments of 1973, the
Secretary shall, as soon as practicable after the date of enactment of the
Fair Labor Standards Amendments of 1973, appoint a special industry
committee in accordance with section 5 to recommend the highest minimum
wage rate or rates, which shall be not less than 60 per centum of the
otherwise applicable minimum wage rate in effect under subsection (b)
or $1.00 an hour, whichever is greater, to be applicable to such employee
in lieu of the rate or rates prescribed by subsection (b). The rate recom-
mended by the special industry committee shall (A) be effective with
respect to such employee upon the effective date of the wage order issued
pursuant to such recommendation, but not before sixty days after the
effective date of the Fair Labor Standards Amendments of 1973, and
(B) except in the caste of employees of the government of Puerto Rico
or any political subdivision thereof, be increased in accordance with
paragraph (2) (B).
"(4) (A) Notwithstanding pararaph (2) (A) or (3), the wage rate
of any employee in Puerto Rico or' the Virgin Islands which is subject
to paragraph (2) (A) or (3) of this subsection, shall, on the effective
date of the wage increase under paragraph (2) (A) or of the wage rate
recommended under paragraph (3), as the case may be, be not less than
60 per centum of the otherwise applicable rate under subsection (a)
or (b) or $1.00, whichever is higher.
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"(B) Notwithetanding!paracrraph (2) (B), the ware rate of any em-
ployee in Puerto Rico or, the Virgin Islands which es subject to para-
graph (2) (B), shall, on and after the effective date of the first wage
increase under paragraph. (2) (B)., be not less than 60 per centum of
the otherwise applicable, rate under subsection (a) or (b) or $1.09,
whichever is higher.
"(5) If the wage rate of an employee is to be increased under this
subsection to a. wage rate which equals or is greater than the wage rate
under subsection (a) or (b) which, but f or paragraph (1) of this subsection,
would be applicable to such emp"oyee, this subsection shall be inapplicable
to such employee and the applicable rate under such subsection shall apply
to such employee.
"(6) Each minimum wage rate prescribed by or under paragraph (2)
or (3) shall be in effect unless such minimum wage rate has been super-
seded by a wage order (issued by the Secretary pursuant to the recommenda-
tion of a special industry committee convened under section 8) fixing a
higher minimum wage rate."
(c)(1) The last sentence of section 8(b) is amended by striking out the
period at the end thereof and inserting in lieu thereof a semicolon and
the following: "except that the committee shall recommend to the Secretary
the minimum wage rate prescribed in section 6(a) or 6(b), which would be
applicable but for section 6(c),, unless there is substantial documentary
evidence, including pertinent unabridged profit and loss statements and
balance sheets for a representative period of years or in the case of employ-
ees of public agencies other appropriate information, in the record which
establishes that the industry, or a predominant portion thereof, is unable
to pay that wage."
(2) The third sentence of section 10(a) is amended by inserting after
"modify" the following: "(including provision for the payment of an
appropriate minimum wage rate)".
(d) Section 3 is amended I,1) by striking out "the minimum wage
prescribed in paragraph (1) of section 6(a) in each such industry" in
the first sentence of subsection (a) and inserting in lieu thereof ",the
minimum wage rate which would apply in each such industry under
paragraph (1) or (5) of section 6(a) but for section 6(c)", (2) by striking
out "the minimum wage rate prescribed in paragraph (1) of section 6(a)"
in the last sentence of subsection (a) and inserting in lieu thereof "the
otherwise applicable minimum wage rate in effect under paragraph (1)
or (5) of section 6(a)", and (3; by striking out "prescribed in paragraph
(1) of fectsnder section
paragraph (1) or (5) of section 6(a) (as inserting thin lieu e case may be)". "in
e FEDERAL A.ND STATE EMPLOYEES
SEC. 6. (a) (1) Section 3(d) Is amended to read as follows:
"(d) `Employer' includes any person acting directly or indirectly in
the interest of an employer in relation to an employee and includes a
public agency, but does not include any labor organization (other than
when acting as an employer) or anyone acting in the capacity of o0cer
or agent of such labor organizastion."
(2) Section 3(e) is amended to read as follows:
"(e) (1) Except as provided in pars raphs (2) and (3), the term
ployee' means any individual employed by an employer.
"(2) In the case of a individual employed by a public agency, such
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term means-
"(A) any individual employed by the Government of the United
States-
"(i) as a civilian in the military departments (as defined in
section 102 of title 5, United States Code),
"(ii) in any executive agency (as defined in section 105 of
such title),
"(iii) in any unit of the legislative or judicial branch of the
Government which has positions in the competitive service,
"(iv) in a nonappropriated fund instrumentality under the
jurisdiction of the Armed Forces, or
"(v) in the Library of Congress;
"(B) any individual employed by the United States Postal Service
or the Postal Rate Commission; and
"(C) any individual employed by a State, political subdivision of
a State, or an interstate governmental agency, other than such an
individual-
"(i) who is not subject to the civil service laws of the State,
political subdivision, or agency which employs him; and
"(ii) who-
"(I) holds a public elective office of that State, political
subdivision, or agency,
"(II) is selected by the holder of such an office to be a
member of his personal stag,
"(III) is appointed by such an office holder to serve on a
policy making level, or
"(IV) who is an immediate advisor to such an office
holder with respect to the constitutional or legal powers of
his office."
"(3) For purposes of subsection (u), such term does not include any
individual employed by an employer engaged in agriculture if such
individual is the parent, spouse, child, or other member of the employer's
immediate family."
(3) Section 3(h) is amended to read as follows:
"(h) `Industry' means a trade, business, industry, or other activity, or
branch or group thereof, in which individuals are gainfully employed."
(4) Section 3(r) is amended by inserting "or" at the end of paragraph
(2) and by inserting after that paragraph the following new paragraph:
"(3) in connection with the activities of a public agency,".
(5) Section 3(s) is amended-
(A) by striking out in the matter preceding paragraph (1) "in-
cluding employees handling, selling, or otherwise working on goods"
and inserting in lieu thereof "or employees handling, selling, or
otherwise working on goods or materials",
(B) by striking out "or" at the end of paragraph (3),
(C) by striking out the period at the end of paragraph (4) and
inserting in lieu thereof "; or",
(D) by adding after paragraph (4) the following new paragraph:
"(5) is an activity of a public agency." , and
(E) by adding after the last sentence the following new sentence:
"The employees of an enterprise which is a public agency shall for
purposes of this subsection be deemed to be employees engaged in
commerce, or in the production of goods for commerce, or employees
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handling, selling, or,otherw,ise working on goods or materials that
have been moved in or produced for commerce."
(6) Section 3 is amended by adding after subsection (w) the following:
"(x) `Public agency' means the Government of the United States; the
government of a State or political subdivision thereof; any agency of the
United States (including the United States Postal Service and Postal
Rate Commission), a State, or a political subdivision of a State; or any
interstate governmental agency."
(b) Section 4 is amended by adding at the end thereof the following
new subsection:
" (f) The Secretary is authorized to enter into an agreement with the
Librarian of (:ongress with respect to any individual employed in the
Library of 'Congress to provide for the carrying out of the Secretary's
functions under this Act with respect Fo such individuals. Notwithstanding
any other provision of this Act, or any other law, the Civil Service Com-
mission is authorized to administer the provisions of this Act with respect
to any individual employed by the United States (other than an individual
employed in the Library of Congress, United States Postal Service, or
Postal Rate Commission). Nothing in this subsection shall be construed
to affect the right of an employee to bring an action for unpaid minimum
wages, or unpaid overtime compensation, and liquidated damages under
section 16 (b) of this Act.".
(c) Section 7 is amended by adding at the end thereof the following
new subsection:
"(k) No public agency shall be deemed to have violated subsection (a)
with regard to any employee engaged in fire protection or law enforcement
activities (including security personnel in correctional institutions) if,
pursuant to an agreement or understanding arrived at between the errs-
ployer and the employee before performance of the work, a work period
of twenty-eight consecutive days is accepted in lieu of the workweek (f
seven consecutive days for purposes of overtime computation and if the
employee receives compensation at a rate not less than one and one-half
times the regular rate at which he is employed for his employment in
excess of-
"(1) one hundred and ninety-two hours in each such twenty-eight
day period during the first year from the effective date of the Fair
Labor Standards Amendments of 1978;
(2) one hundred and eighty-four hours in each such twenty-eight
day period during the second year from such date;
"(3) one hundred and seventy-six hours in each such twenty-eight
clay period during the third year from such date;
"(4) one hundred and sixty-eight hours in each such twenty-eight
day period during the fourth year from such date; and
"(5) one hundred and sixty hours in each such twenty-eight day
period thereafter."
(d) (1) The second sentence of section 16(b) is amended to read as
follows: "Action to recover such liability may be maintained against any
employer (including a public agency) in any Federal or State court c f
competent jurisdiction by any one or more employees for and in behalf of
himself or themselves and other employees similarly situated.".
(2) (A) Section 6 of the' Portal-to-Portal Pay Act of 1947 is amended
by striking out the period at the snd of paragraph (c) and by inserting in
lieu thereof a semicolon and by adding after such paragraph the following:
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"(d) with respect to any cause of action brought under section
16(b) of the Fair Labor Standards Act of 1938 against a State or a
political subdivision of a State in a district court of the United States
on or before April 18, 1973, the running of the statutory periods of
limitation shall be deemed suspended during the period beginning
with the commencement of any such action and ending one hundred
and eighty days after the effective date of the Fair Labor Standards
Amendments of 1973, except that such suspension shall not be appli-
cable if in such action judgment has been entered for the defendant
on the grounds other than State immunity from Federal jurisdiction."
(B) Section 11 of such Act is amended by striking out "(b)" after
"section 16".
SEC. 7. (a) Section 2(a) is amended by inserting at the end the follow-
ing new sentence: "The Congress further finds that the employment of
persons in domestic service in households affects commerce."
(b) (1) Section 6 is amended by adding after subsection (e) the following
new subsection:
"(f) Any employee who in any workweek is employed in domestic
service in a household shall be paid wages at a rate not less than the wage
rate in effect under section 6(b) unless such employee's compensation for
such service would not because of section 209(g) of the Social Security
Act constitute `wages' for purposes of title II of such Act."
(2) Section 7 is amended by adding after the subsection added by
section 6(c) of this Act the following new subsection:
"(l) Subsection (a) (1) shall apply with respect to any employee who
in any workweek is employed in domestic service in a household unless
such employee's compensation for such work would not because of section
209(g) of the Social Security Act constitute `wages' for purposes of title
II of such Act."
(8) Section 13(a) is amended by adding at the end the following new
paragraph:
"(15) any employee employed on a casual basis in domestic service
employment to provide babysitting services or any employee employed
in domestic service employment to provide companionship services
for individuals who (because of age or infirmity) are unable to care
for themselves (as such terms are defined and delimited by regulations
of the Secretary)."
(4) Section 13(b) is amended by striking out the period at the end of
paragraph (19) and inserting in lieu thereof "; or" and by adding after
that paragraph the following new paragraph:
"(20) any employee who is employed in domestic service in a
household and who resides in such household; or".
SEc. 8. (a) Effective July 1, 1974, section 13(a)(2) (relating to em-
ployees of retail and service establishments) is amended by striking out
"8250,000" and inserting in lieu thereof '1225,000".
(b) Effective July 1, 1975, such section is amended by striking out
"$225,000" and inserting in lieu thereof "$200,000".
(c) Epective July 1, 1976, such section is amended by striking out "ror
such establishment has an annual dollar volume of sales which is less than
$200,000 (exclusive of excise taxes at the retail level which are separately
stated)".
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TOBACCO EMPLOYEES
SEC. 9. (a) Section 7 is amended by adding after the subsection added
by section 7(b) (2) of this Act the following:
"(m) For a period or periods of not more than fourteen workweeks in
the aggregate in any calendar year, any employer may employ an
employee for a workweek in excess of that specified in subsection (a)
without paying the compensation for overtime employment prescribed in
such subsection, if such employee---
"(1) is employed by sm;eh employer-
"(A) to provide services (including stripping and grading)
necessary and incidental to the sale at auction of green leaf
tobacco of type 11, 12, 13, 14, 21, 22, 23, 24, 31, 35, 36, or 37
(as such types are defined by the Secretary of Agriculture),
or in auction sale.. buying, handling, stemming, redrying,
packing, and storing of such tobacco,
"(8) in auction sale. buying, handling, sorting, grading,
packing, or storing greens leaf tobacco of type 32 (as such type
is defined by the Secretary of Agriculture), or
in auction sale, buying, handling, stripping, sorting,
gradp:ng, sizing, packing, or stemming prior to packing, of
perishable cigar leaf 1obacco of type 41, 42, 43, 44, 45, 46, 51, 52,
53, 54, 55, 61, or 62 (as such types are defined by the Secretary
of Agriculture); and
"(2) receives for-
(A) such employment by such employer which is in excess
of ten hours in any workday, and
such employment by such employer which is in excess
of , forty-eight hours in any workweek,
compensation at a'rate not less than one and one-half times the
regular rate at which he is employed.
An employer who receives an exemption under this subsection shall not be
eligible,for any other exemption under this section."
(b) (1) Section 13(a) (14) is repealed.
(2) Section .13(b) is amended by adding after the paragraph added by
section 7(b) (4) of this Act the following new paragraph:
"(21) any agriccltural employee employed in the growing and
harvesting of shadegrowrr, tobacco who is engaged in the processing
(including, but not limited to, drying, curing, fermenting, bulking,
rebulking, sorting, grading, aging, and baling) of such tobacco, prior
to the stemming process, for use as cigar wrapper tobacco; or".
SEC. 10. (a) Section 13 (a) (II) (relating to telegraph agency employees)
is repealed.
(b) (1) Seet'im 13(b) is amended by adding after the paragraph added
by section 9(15) (2) of this Act the following new paragraph:
"(22) any employee or proprietor in a retail or service establ ;sh-
ment, which qualifies as an exempt retail or service establishment
under paragraph (2) of ss ebseetion (a) with respect to whom the pro-
visions (f sections 6 and 7 would not otherwise apply, engaged in
handling telegraphic. messages for the public under an agency or
contract arrangement with a telegraph company where the telegraph
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message revenue of such agency does not exceed $500 a month and
receives compensation for employment in excess of forty-eight
hours in any workweek at a rate not less than one and one-half times
the regular rate at which he is employed; or".
(2) Effective one year after the effective date of the Fair Labor Standards
Amendments of 1973, section 13(b) (22) is amended by striking out
`forty-eight hours" and inserting in lieu thereof `forty four hours".
(3) Effective two years after such date, section 13(b)(22) is repealed.
SEAFOOD CANNING AND PROCESSING EMPLOYEES
SEC. 11. (a) Section 13(b)(4) (relating to fish and seafood processing
employees) is amended by inserting "who is" after "employee", and by in-
serting before the semicolon the following: ", and who receives compen-
sation for employment in excess of forty-eight hours in any workweek at
a rate not less than one and one-half times the regular rate at which he is
employed".
(b) Effective one year after the effective date of the Fair Labor Stand-
ards Amendments of 1973, section 13(b) (4) is amended by striking out
`forty-eight hours" and inserting in lieu thereof "forty-four hours."
(c) Effective two years after such date, section 13(b)(4) is repealed.
NURSING HOME EMPLOYEES
SEC. 12. (a) Section 13(b)(8) (insofar as it relates to nursing home
employees) is amended by striking out "any employee who (A) is employed
by an establishment which is an institution (other than a hospital) pri-
marily engaged in the care of the sick, the aged, or the mentally ill or de-
fective who reside on the premises" and the remainder of that paragraph.
(b) Section 7(j) is amended by inserting after "a hospital" the following:
"or an establishment which is an institution primarily engaged in the
care of the sick, the aged, or the mentally ill or defective who reside on the
premises".
HOTEL, MOTEL, AND RESTAURANT EMPLOYEES AND TIPPED EMPLOYEES
SEC. 13. (a) Section 13(b) (8) (insofar as it relates to hotel, motel, and
restaurant employees) (as amended by section 12) is amended (1) by strik-
ing out "any employee" and inserting in lieu thereof "(A) any employee
(other than an employee of a hotel or motel who is employed to perform maid
or custodial services) who is", (2) by inserting before the semicolon the
following: "and who reeeives compensation for employment in excess of
forty-eight hours in any it)orkweek at a rate not less than one and one-half
times the regular rate at which he is employed", and (3) by adding after
such section the following: I
"(B) any employee who is employed by a hotel or motel to perform
maid or custodial services and who receives compensation for employ-
ment in excess of forty-eight hours in any workweek at a rate not less
than one and one-half times the regular rate at which he is employed;
or'
(b) Effective one year after the effective date of the Fair Labor Standards
Amendments of 1973, subparagraphs (A) and (B) of section 13(b) (8) are
each amended by striking out `forty-eight hours" and inserting in lieu
thereof "forty-six hours".
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(c) lffective two years after such date, subparagraph (B) of section
13(b)(8) is amended by striking ~qut "forty-six hours" and inserting in
lieu thereof `forty four hours".
(d) Effective three years after such (late, subparagraph (B) of section
13(b) (8) is repealed and such section is amended by striking out "(A)".
(e) The last sentence of sectior,, 3(m) is, amended to read as follows.
In determining the wage of a tipped employee, the amount paid such
employee by his employer shall be deemed to be increased on account of
tips by an amount determined by the employer, but not by an amount in
excess of 50 per centum of the applicable minimum wage rate, except that
the amount of the increase on account of tips determined by the employer
may not exceed the value of tips actually received by the employee. The
previous sentence shall not apply with, respect to any tipped employee
unless (1) such employee has been informed by the employer of the pro-
visions of this section, and (5.) all tips received by such employee have
been retained by the employee, except that nothing herein shall prohibit
the pooling of tips among employees who customarily and regularly
receive tips."
SALESMEN, PARTSMEN, AND MECHANICS
SEC. 14. Section 13(b) (10) (relating to salesmen, partsmen, and
mechanics) ie amended to read as follows:
"(10)'A) any salesman primarily engaged in selling automobiles,
trailers, trucks, farm implements, boats, or aircraft if he is employed
by a nonmanufaeturing establishment primarily engaged in the
business (f selling such boats or vehicles to ultimate purchasers;- or
"(B) any artsman primarily engaged in selling parts for auto-
mobiles, trucks, or farm implements and any mechanic primarily
engaged in servicing such, vehicles, if they are employed by a non-
manufacturing establishment primarily engaged in the business of
selling such vehicles to ultimate purchasers; or".
FOOD SERVICE NSTABURITMBNT EMPLOYEES
SEC. 15 (a) Section 13(b) (18) (relating to food service and catering
employees) is amended by inserting immediately before the semicolon the
following: "and who receives compensation for employment in excess of
forty-eight hours in any workweek at a rate not less than one and one-half
times the regular rate at which he is employed".
(b) Effective one year after the effective date of the Fair Labor Standards
Amendments of 1973, such section is amended by striking out `forty-eight
hours" and inserting in lieu thereof `forty four hours".
(c) Effective two years after such date, such section is repealed.
SEC. 16. (a) Effective one year after the effective date of the Fair Labor
Standards Amendments of 1973, section 13(b) (19) (relating to employees
of bowling establishments) is amended by striking out "forty-eight hours"
and inserting in lieu thereof "forty-four hours".
(b) Ef ective two years after such date, such section is repealed.
SUBSTITUTE PARENTS FOR INSTITUTIONALIZED CHILDREN
SEC. 17. Section 18(b) is amended by inserting after the paragraph
added by section 10(b) (1) of this Act the following new paragraph:
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"(28) any employee who is employed with his spouse by a non-
profit education institution to serve as the parents of children-
"(A) who are orphans or one of whose natural parents is
deceased, and
"(B) who are enrolled in such institution and reside in
residential facilities of the institution, while such children are
in residence at such institution,
if such employee and his spouse reside in such facilities, receive,
without cost, board and lodging from such institution, and are
together compensated, on a cash basis, at an annual rate of not less
than $10,000; or".
SEC. 18. Section 13 is amended by adding at the end thereof the following:
"(g) The exemption from section 6 provided by paragraphs (2) and (6) of
subsection (a) of this section shall not apply with respect to any employee
employed by an establishment (1) which controls, is controlled by, or is
under common control with, another establishment the activities of which
are not related for a common business purpose to, but materially support,
the activities of the establishment employing such employee; and (2)
whose annual gross volume of sales made or business done, when com-
bined with the annual gross volume of sales made or business done by
each establishment which controls, is controlled by, or is under common
control with, the establishment employing such employee, exceeds
$10,000,000 (exclusive of excise taxes at the retail level which are sepa-
rately stated), except that the exemption. from section 6 provided by sub-
paragraph (2) of subsection (a) of this section shall apply with respect
to any establishment described in this subsection which has an annual
dollar volume of sales which would permit it to qualify for the exemption
provided in paragraph (2) of subsection (a) if it were in an enterprise
described in section 3(s)."
SEC. 19. (a) Effective January 1, 1974, sections 7(c) and 7(d) are
each amended-
(1) by striking out "ten workweeks" and inserting in lieu thereof
"seven workweeks", and
(2) by striking out `fourteen workweeks" and inserting in lieu
thereof "ten workweeks".
(b) Effective January 1, 1974, section 7(c) is amended by striking
out "fifty hours" and inserting in lieu thereof `forty-eight hours".
(c) Effective January 1, 1975, sections 7(c) and 7(d) are each
amended-
(1) by striking out "seven workweeks" and inserting in lieu thereof
"five workweeks", and
(2) by striking out "ten workweeks" and inserting in lieu thereof
"seven workweeks".
(d) Effective January 1, 1976, sections 7(c) and 7(d) are each
amended-
(1) by striking out "five workweeks" and inserting in lieu thereof
"three workweeks", and
(2) by striking out "seven workweeks" and inserting in lieu
~~l1thereof "fives workweeks". r~1 ld1 a7
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COTTON GINNING AND 9UGAR PROCESSING EMPLOYEES
Sic. 20. (a) Effective January 1, 1971, section 13(b) (15) is
amended to read as f ollows :
"(15) any employee engaged in the processing of maple sap
into sugar (other than refined sugar) or syrup; or".
(b) (1) Effective January 1,1974, section 13 (b) is amended by add-
ing after paragraph (231) the following new paragraph:
(24) any employee who is engaged in ginning of cotton for
market any place of employment located in a county where
cotton is grown in:commercial quantities and who receives com-
pensation for employment in excess of-
4& (A) seventy-two hours in any workweek for not more than
y ix workweeks in a year,
11
) sixty-four hours in any workweek for not more than
"(1
four workweeks in that year,
"((Y) fifty-four hours in any workweek for not more than
two workweeks in that year, and
"(1)) forty-eight hours in any other workweek in that year,
at a rate not less than one and one-half times the regular rate at
which he is employed; or".
(2) Effective January 1, 1975, section 13(b) (24) is amended-
(A) by striking but "seventy-two" and inserting in lieu thereof
"sixty-six";
(B) by striking out "eixty-four" and inserting in lieu thereof
"sixty";
(C) by striking out "fifty -four" and inserting in lieu thereof
C6 fifty"
(D) by striking out "and" at the end of subpargraph (C); and
(F.) by striking out "forty-eight hours in any other workweek
in that year" and inserting in lieu thereof the following: "forty-
six hours in any workweek for not more than two workweeks in
that year, and
"(1) forty-four hours in any other workweek in that year,".
(3) Effective January 1, 1976, section 13(b) (24) is amended-
(A) by striking out ``sixty-six" and inserting in lieu thereof
"sixtyy";
(B) by striking out "sixty" and inserting in lieu thereof "fifty-
(C) by striking out " fC f ty" and inserting in lieu thereof "forty-
eight",:
(D) by striking out forty-six" and inserting in lieu thereof
"four-four"; and
(E) by striking !outt "forty-four" and inserting in lieu thereof
"forty
(c) (1) Effective January 1, 1974, section 13(b) is amended by add-
ing after paragraph (24) the following new paragraph:
"(t 5) any employee who is engaged in the processing of sugar
beets, sugar beet v olasses, or sugar cane into sugar (other than
refined sugar) or syrup and who receives compensation for em-
ployment in excess o f-
"(A) seventy-two hours in any workweek for not more
than eix workweeks in a year,
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"(B) sixty-four hours in any workweek for not more than
four workweeks in that year,
"(C) fifty-four hours in any workweek for not more than
two workweeks in that year, and
"(D) forty-eight hours in any other workweek in that
year,
at a rate not less than one and one-half times the regular rate at
which he is employed; or''.
(2) Effective January 1, 1975, section 13(b) (25) is amended-
(A) by striking out "seventy-two" and inserting in lieu thereof
"sixty-six";
(B) by striking out "sixty-four" and inserting in lieu thereof
"sixty";
(C) by striking out "fifty-four" and inserting in lieu thereof
"fG fty";
(D) by striking out "and" at the end of subparagraph (C);
and
(E) by striking out "forty-eight hours in any other workweek
in that year" and inserting in lieu thereof the following : "forty-
six hours in any workweek for not more than two workweeks in
that year, and
"(E) forty-four hours in any other workweek in that
year,".
(3) Effective January 1, 1976, section 13(b) (25) is amended-
(A) striking out "sixty-six" and inserting in lieu thereof
sixty ;
(B) by striking out "sixty" and inserting in lieu thereof "fifty-
six ;
(C) by striking out "fifty" and inserting in lieu thereof
"forty-eight";
(D) by striking out "forty-six" and inserting in lieu thereof
"forty-four"; and
CG (E)7by striking out "forty-four" and inserting in lieu thereof
forty' .
LOCAL TRANSIT EMPLOYEES
SEC. 21. (a) Section 7 is amended by adding after the subsection added
by section 9(a) of this Act the following new subsection:
"(n) In the case of an employee of an employer engaged in the business
of operating a street, surburban or interurban electric railway, or local
trolley or motorbus carrier (regardless of whether or not such railway or
carrier is public or private or operated for profit or not for profit) in de-
termining the hours of employment of such an employee to which the rate
prescribed by subsection (a) applies there shall be excluded the hours such
employee was employed in charter activities by such employer if (1) the
employee's employment in such activities was pursuant to an agreement or
understanding with his employer arrived at before engaging in such em-
ployment, and (2) if employment in such activities is not part of such em-
ployee's regular employment."
(b) (1) Section 18(b)(7) (relating to employees of street, suburban, or
interurban electric railways or local trolley or motorbus carriers) is
amended by striking out ", if the rates and services of such railway or
H. Rept. 413, 93-1-2
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carrier are subject to regulation by a. State or local agency" and inserting
in lieu thereof the following: "(regardless of whether or not such railway
or carrier is public or private or operated for profit or not for profit), if
such employee receives compensation for employment in excess of forty-
eight hours in any workweek at a- rate not less than one and one-half
times the regular rate at which le is employed".
(2) Effective one year after the effective date of the Fair Labor Standards
Amendments of 1973, such section i, amended by striking out `forty-eight
hours" and inserting in lieu thereof `forty four hours".
(3) Efjective two years after such date, such section is repealed.
SEC. 22. Section 13 is aonendsd by adding after the subsection added
by section 18 (a) the following
"(h) The provisions of section? shall not apply for a period or peri-
ods of not more than fourteen workweeks in the aggregate in any
calendar year to any employee who--
"(1) is employed by such employer-
"(A) exclusit ely to provide services necessary and inci-
dental to the ginning of cotton in an establishment primarily
engaged rin the ginning of cotton;
" (.8) exclusively to ps^ovide services necessary and inci-
dental to the receiving, handling and storing of raw cotton
and the compressing of raw cotton when performed at a cot-
ton warehouse or compress-warehouse facility, other than one
operated in conjunction with a cotton mill, primarily engaged
in storing and compressinq;
"(0) exclusively to provide services necessary and inci-
dental to the receiving, handling, storing, and processing of
cottonseed in an establishment primarily engaged in the re-
ceivinq, handling, stcrin.yt and processing Of cottonseed; and
" (D) exclusively to provide services necessary and inci-
denta to the processing of sugar cane or sugar beets in an
establishment primarily ;ngaged in the processing of sugar
Cane or sugar beets; and"
"(2) receives for-
"(A) such employment by such employer which is in ex-
cess of ten hours in any workday, and
"(8) such employment by such employer which is in ex-
cess of forty-eight hours in any workweek,
compensation at a rate not less than one and one-half times the
regular rate at which he is employed.
Any employer who receives an exemption under this subsection shall
not be eligible for any other exemption under this section or section
7?
SEC. 23. (a) (1) Section 13(a) (9) (relating to motion picture theai`er
employees) is repealed.
(2) Section 13(b) is amended by adding after paragraph (25) the follow-
ing new paragraph:
"(26) any employee employed by an establishment which is a motion
picture theater;".
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(b) (1) Section 13(a) (13) (relating to small logging crews) is repealed.
(2) Section 13(b) is amended by adding after paragraph (26) the follow-
ing new paragraph:
"(27) any employee employed in planting or tending trees, cruising,
surveying, or felling timber, or in preparing or transporting logs or
other forestry products to the mill, processing plant, railroad, or other
transportation terminal, if the number of employees employed by his
employer in such forestry or lumbering operations does not exceed
eight."
(c) Section 13(b) (2) (insofar as it relates to pipeline emplo ees) is
amended by inserting after "employer" the , following: "engaged in the
operation of a common carrier by rail and".
EMPLOYMENT OF STUDENTS
SEC. 24. (a) Section 14 is amended by striking out subsections (a), (b),
and (c) and inserting in lieu thereof the following:
"SEC. 14. (a) The Secretary, to the extent necessary in order to prevent
curtailment of opportunities for employment, shall by regulations or by
orders provide for the employment of learners; of apprentices, and of
messengers employed primarily in delivering letters and messages, under
special certificates issued pursuant to regulations of the Secretary; at such
wages lower than the minimum wage applicable under section 6 and
subject to such limitations as to time, number, proportion, and length of
service as the Secretary shall prescribe.
"(b) (1) (A) The Secretary, to the extent necessary in order to prevent
curtailment of opportunities for employment, shall by special certificate
issued under a regulation or order provide; in accordance with subpara-
graph (B), for the employment; at a wage rate not less than 85 per centum
of the otherwise applicable wage rate in effect under section 6 or not less
than $1.60 an hour, whichever is the higher (or in the case of employment
in Puerto Rico or the Virgin Islands not described in section 5(e), at a
wage rate not less than 85 per centum of the otherwise applicable wage
rate in effect under section 6(c)), of full-time students (regardless of age
but in compliance with applicable child labor laws) in retail or service
establishments.
"(B) Except as provided in paragraph (4) (B), the proportion of student
hours of employment under special certificates issued under subparagraph
(A) to the total hours of employment of all employees in any retail or
service establishment may not exceed (i) such proportion for the corre-
sponding month of the twelve-month period preceding May 1, 1961,
(ii) in the case of a retail or service establishment whose employees
(other than employees engaged in commerce or in the production of goods
for commerce) are covered by this Act for the first time on or after the effec-
tive date of the Fair Labor Standards Amendments of 1966 or the Fair
Labor Standards Amendments of 1973, such proportion for the correspond-
ing month of the twelve-month period immediately prior to the applicable
effective date, or (iii) in the case of a retail or service establishment coming
into existence after May 1, 1961, or a retail or service establishment for
which records of student hours worked are not available, a proportion of
student hours of employment to total hours of employment of all employees
based on the practice during the twelve-month period preceding May 1,
1961, in similar establishments of the same employer in the same general
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metropolitan area in which the new establishment is located, similar estab-
lishments of the same employer in the same or nearby counties if the new
establishment: is not in a metropolitan area, or other establishments of the
same general character operating in the community or the nearest compara-
ble community. For the purposes of the preceding sentence, the term `student
hours of employment' means student hours worked at less than $f.00
an hour, except that such term shall include, in States whose minimum
wages were at or above $1.00 an hour in the base year, hours worked by
students at the State minimum, wage in the base year.
"(s) The Secretary, to the extent necessary in order to prevent eur,tail-
rnent of opportunities fpr employment, shall by special certificate issued
under a regulation or order provide for the employment, at a wage rate
not less than 85 per eentum of the wage rate in effect under section 6(a;l (5)
or not less than $1.30 an hour, whichever is the higher (or in the case of
employment in Puerto Rico or the Virgin Islands not described in section
5(e), at a wage rate not less than 85 per centum of the wage rate in effect
under section 6(c)(3)) of full-time students (regardless of age but in
compliance with applicable child labor laws) in any occupation in
agriculture.
"(3) The Secretary, to the extent necessary in order to prevent curtail-
ment of opportunities for employment, shall by special certificate issued
under a regulation or order provide for the employment by an institution
of higher education, at a wage rate not less than 85 per centum of the
otherwise applicable wage rate in effect under section 6 or not less than
$1.60 an hour, whichever is the higher (or in the case of employment in
Puerto Rico or the Virgin Islands not described in section 5(e), at a wage
rate not less than 85 per centum of the wage rate in effect under section
6(c)), of full-time students (regardless of age but in compliance with
applicable child labor laws) who are enrolled in such institution. The
Secretary shall by regulation prescribe standards and requirements to
insure that this paragraph will not create a substantial probability of
reducing the full-time employment opportunities of persons other than
those to whom the minimum wage rate authorized by this paragraph is
applicable.
"(4)(A) A special gertifieate: >ssued under paragraph (1), (2), or (3)
shall provide that the student or students for whom it is issued shall, except
during vacation periods, be employed on a part-time basis and not in
excess of twenty hours in any workweek.
"(B) If th-e issuance of a special certificate under paragraph (1) or (2)
for an empi`o yer will cause the :n?umber of students employed by such em-
ployer under special certificates issued under this subsection to exceed four,
the Secretary may not issue such a special certificate for the employment
of a student by such employer unless the Secretary finds employment oj' such
student wild not create s substanrial probability of reducing the full-time
employment opportunities of persons other than those employed under
special: certs fcates issued under this subsection. If the issuance of a special
certificate under paragraph (1) or (2) for an e,wployer will not cause the
number of students employe'I by such employer under special certificates
issued under this subsection to exceed four-
`(i) the Secretary may i sue a special certificate under paragraph
(1) or (2) for the employmc nt of a student by such employer if such
employer certifies to the Secretary that the employment of such
student will not reduce the full-time employment opportunities of
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persons other than those employed under special certificates issued
under this subsection, and
"(ii) in the case of an employer which is a retail or service establish-
ment, subparagraph (B) of paragraph (1) shall not apply with re-
spect to the issuance of special certificates for such employer under
such paragraph.
The requirement of this subparagraph shall not apply in the case of the
issuance of special certificates under paragraph (8) for the employment of
full-time students by institutions of higher education; except that if the
Secretary determines that an institution of higher education is employing
students under certificates issued under paragraph (8) but in violation of
the requirements of that paragraph or of regulations issued thereunder, the
requirements of this subparagraph shall apply with respect to the issuance
of special certificates under paragraph (3) for the employment of students
by such institution.
"(C) No special certificate may be issued under this subsection unless
the employer for whom the certificate is to be issued provides evidence
satisfactory to the Secretary of the student status of the employees to be
employed under such special certificate."
(b) Section 14 is further amended by redesignating subsection (d) as
subsection (c) and by adding at the end the following new subsection:
"(d) The Secretary may by regulation or order provide that sections
6 and 7 shall not apply with respect to the employment by any elementary
or secondary school of its students if such employment constitutes, as
determined under regulations prescribed by the Secretary, an integral
part of the regular education program provided by such school and such
employment is in accordance with applicable child labor laws."
(c) Section 4(d) is amended by adding at the end thereof the ff ollowing
new sentence: "Such report shall also include a summary of the special
certificates issued under section 14(b)."
CHILD LABOR
SEC. 25. (a) Section 12 (relating to child labor) is amended by adding
at the end thereof the following new subsection:
"(d) In order to carry out the objectives of this section, the Secretary
may by regulation require employers to obtain from any employee proof
of age."
(b) Effective January 1, 1974, section 18(c) (1) (relating to child labor
in agriculture) is amended to read as follows:
"(c) (1) Except as provided in paragraph (2), the provisions of section
12 relating tochild labor shall not apply to any employee employed in
agriculture outside of school hours for the school district where such
employee is living while he is so employed, if such employee-
"(A) is less than twelve years of age and (i) is employed by his
parent, or by a person standing in the place of his parent, on a farm
owned or operated by such parent or person, or (ii) is employed,
with the consent of his parent or person standing in the place of his
parent, on a farm, none of the employees of which are (because of
section 18(a) (6) (A)) required to be paid at the wage rate prescribed
by section 6(a) (5),
"(B) is twelve years or thirteen years of age and (i) such employ-
ment is with the consent of his parent or person standing in the
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place of &?s parent, or (i) his parent or such person is employed
on the same farm as such employee, or
,'(C) is fourteen years of age or older."
(c) Section 16 is amended by adding at the end thereof the following
new subsection:
"(e) Any person who violates the provisions of section 12, relating to
child labor, or any regulation issued under that section, shall be subject
to a civil penalty of not to exceed $1,000 for each such violation. In
determining the amount of such Penalty, the appropriateness of such
penalty to the size of the business of the person charged and the gravity
of the violation shall be considered. The amount of Such penalty, when
finally determined, may be-
"(1) deducted frapn any sums owing by the United States to the
person ciurrged;
' , (2) recovered in.; a civil action brought by the Secretary in any
court of competent ;;jurisdiction, in which litigation the Secretary
shall be represented'bby the Solicitor of Labor; or
"(3) ordered by the court, in an action brought under section
16 a (4), to be paid to the Secretary.
Any administrative determination by the Secretary of the amount of such
penalty shall be final, unless within fifteen days after receipt of notice
thereof by certified mail the person charged with the violation takes
exception to the determination that the violations for which the penalty
is imposed occurred, in which event final determination of the penalty
shall be made in an Omim-strative proceeding after opportunity for
hearing in accordance with section 554 of title 5, United States Code, and
regulations to be promulgated by the Secretary. Sums collected as penalties
pursuant to this section shah' be applied toward reimbursement of the
costs of determining the violations and assessing and collecting such
penalties, in accordance,with the provisions of section 2 of an Act entitled
`An Act to authorize the Department of Labor to make special statistical
studies upon payment of the cosy thereof, and for other purposes' (29
U.S.C. 9a). '
SUITS BY SECRETARY FOR BACK WAGES
SEC. 26. The first three sentences of section 16(c) are amended to read
as follows: " The Secretary is authorized to supervise the payment oj' the
unpaid minimum wages or the unpaid overtime compensation owing to
any employes or employees under sections 6 or 7 of this Act, and the ay ree-
ment of any employee to accept such payment shall upon payment in full
constitute a waiver by such employee of any right he may have under
subsection (b) of this section to such unpaid minimum wages or unroaid
overtime compensation and an additional equal amount as liquidated
damages. The Secretary may bring an action in any court of competent
jurisdiction to recover the amount of the unpaid minimum wages or over-
time compensation and an equal amount as liquidated damages. The
right provided by subsection (b) to bring an action by or on behalf of any
employee and of any employee to become a party plaintiff to any such
action shall terminate upon the filing of a complaint by the Secretary
in an action under this subsection in which a recovery is sought of unpaid
minimum wages or unpaid overtime compensation under sections 6 and 7
or liquidated or other damages provided by this subsection owing to such
employee by an employer liable under the provision of subsection (b),
unless such action is dismissed without prejudice on motion of the
Secretary."
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ECONOMIC EFFECTS STUDIES
SEC. 27. Section 4(d) is amended by-
(1) inserting "(1)" immediately after "(d)",.
(2) inserting in the second sentence after the term "minimum
wages" the f ollowing: "and overtime coverage"; and
(3) by adding at the end thereof the following new aragraph:
"(2) The Secretary shall conduct studies on the justification or lack
thereof for each of the special exemptions set forth in section 13 of this
Act, and the extent to which such exemptions apply to employees of
establishments described in subsection (g) of such section and the eco-
nomic effects of the application of such exemptions to such employees.
The Secretary shall submit a report of his findings and recommenda-
tionss to the Congress with respect to the studies conducted under this
paragraph not later than January 1,1976."
EFFECTIVE DATE
SEC. 28. (a) Except as otherwise specifically provided, the amendments
made by this Act shall take effect on the first day of the second full month
which begins after the date of the enactment of this Act.
(b) Notwithstanding subsection (a), on and after the date of the enact-
ment of this Act the Secretary of Labor is authorized to prescribe n :ces-
sary rules, regulations, and orders with regard to the amendments made
by this Act.
And the Senate agree to the same.
HARRISON A. WILLIAMS, Jr.,
JENNINGS RANDOLPH,
CLAIBORNE PELL,
GAYLORD NELSON,
THOMAS F. EAGLETON,
HAROLD E. HUGHES,
WILLIAM D. HATHAWAY,
J. JAVITS,
RICHARD S. SCHWEIKER,
ROBERT T. STAFFORD,
Managers on the Part of the Senate.
CARL D. PER,KINS,
FRANK THOMPSON, Jr.,
JOHN H. DENT,
DOMINICK V. DANIELS,
PHILLIP BURTON,
JOSEPH M. GAYDOS,
W. L. CLAY,
MARIO BIAGGI,
ROMANO L. MAZZOLI,
Managers on the Part of the House.
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JOINT EXPLANATORY STATEMENT OF THE
COMMITTEE OF CONFERENCE
The managers on the part of the House and the Senate at the con-
ference on the disagreeing votes of the two Houses on the amendment
of the Senate to the bill (II.R. 7935) to amend the Fair Labor Stand-
ards Act of 1938 to increase the minimum wage rates under that Act,
to expand the coverage of that Act, and for other purposes, submit
the following joint statement to the House and the Senate in explana-
tion of the effect of the action agreed upon by the managers and rec-
ommended in the accompanying conference report :
The House recedes from its disagreement to the amendment of the
Senate with an amendment which is a substitute for the House bill
and the Senate amendment. The differences between the House bill,
the Senate amendment, and the substitute agreed to in conference are
noted below, except for clerical corrections, conforming changes made
necessary by agreements reached by the conferees, and minor drafting
and clarifying changes.
The House bill provided the following dollar amounts for the mini-
mum wage :
1. Nonagricultural Employees :
A. Covered before 1966___ $2.00 an hour during the period
ending June 30, 1974. $2.20 an
hour after June 30, 1974.
B. Covered in 1966 or
1.973 ------------------ $1.80 an hour during the period
ending June 30, 1974. $2.00 an
hour during the year beginning
July 1, 1974. $2.20 an hour after
June 30, 1975.
(Nom.-Presently covered Fed-
eral employees would receive
two-step increase described in
item lA.)
2. Agricultural Employees------ $1.60 an hour during the period
ending June 30, 1974. $1.80 an
hour during the year beginning
July 1, 1974. $2.00 an hour dur-
ing the year beginning July 1,
1975. $2.20 an hour after June
30, 1976.
The Senate amendment provided the following dollar amounts for
the minimum wage :
1. Nonagricultural Employees :
A. Covered before 1966___ $2.00 an hour during 1st year. $2.20
an hour thereafter.
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B. Covered in 1966 or
1973 ________$1.80 an hour during 1st year.
$2.00 an hour during 2d year.
$2.20 an hour thereafter.
(Novx.-Presently covered Fed-
eral employees would receive
two-step increase described in
item 1A.)
2. Agricultural Employees--.__._- $1.60 an hour during 1st year.
$1.80 an hour during 2d year.
$2.00 an hour during 3d year.
$2.20 an hour thereafter.
The Senate receded. '
Both the House bill and the Senate amendment contained provi-
sions relating to employees in Puerto Rico and the Virgin Islands.
Both provided for hotel, motel, restaurant and food service employees
on the islands to be treated for wage computation as if employed on
the United States mainland. "In addition, the House bill provided that
Federal Government and Virgin Islands Government employees be
treated for wage computation ac if employed on the mainland. The
Senate amendment differed by mandating mainland rates for em-
ployees of Puerto Rico, the Virgin Islands, and their political sub-
divisions. The House bill also contained a provision that employees
of conglomerates be treated for wage computation as if employed on
the United States mainland. The Senate amendment had no such
provision.
For other covered workers in Puerto Rico and the Virgin Islands,
the House bill provided wage order rates as follows r
1.. Nonagricultural employees covered before 1966 to be in-
creased by 25 percent of the pre-1973 rate and by 12.5% of such
rate after one year after the first increase takes effect :
2. Nonagricultural employees covered in 1966 to be increased
by three annual increases of 12.5% of such rate;
3. Agricultural employees to be increased by three annual in-
creases of 15.4% of such rate (subsidized employees will have
their increases applied to their wage rate as subsidized) ; and
4. Newly covered employees' rates to be set by special industry
committees appointed under section 5.
No wage rate under a'wage order could be less than 60 percent of the
otherwise applicable wage rate in effect for U.S. mainland employees.
The Senate amendment provided as follows :
1. In first year for employees covered before 1973.-Any rite
less than $0.80 an hour to be increased to $1. Subsidized agricul-
tural employees will have their increase applied to their wage
rate as increased by the subsidy. Any rate more than $0.80 an
hour to be increased by $0.20 ern hour.
2. In first year for employees covered in 1973.-Special indus-
try committee to set rate at not less than $1.60 an hour, except that
if an industry (or predominant portion thereof) established its
inability to pay, wage rate to be not less than $1 an hour.
3. In second year and in each year thereafter for all employ-
ees.-Wage rate to be increased by $0.20 an hour in each year
until the wage rate under section 6(a) is reached.
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4. No wage rate under a wage order may result in reducing the
increases provided in the Senate amendment.
The House bill retained the special industry committees which can
adjust upward the wage rate increases required under the Act, and set
rates for newly covered industries. It also retained the hardship re-
view committees which could lower the amount of the mandated
raises, in the face of documentary evidence of an inability to pay the
mandated rates.
The Senate amendments retained the special industry committees
which could raise the wage order rates above the mandated level, but
not lower them. Hardship review committees would be discontinued.
Special industry committees were authorized to establish wage rates
for newly covered industries.
The Senate recedes with an amendment as follows :
(1) Effective on the effective date of the legislation, presently
covered employees are to receive the following increases :
(A) increases of 12 cents an hour if their wage order rates
are less than $1.40 an hour; and
(B) increase of 15 cents an hour if their wage order rates
are $1.40 an hour or higher.
An exception to this first increase is provided in the case of
employees whose wage orders are increased during the period
July 26 to the effective data of the legislation. With respect to
such employees they are to receive this first increase only if the
increase which they received during such period was less than
this first increase and if it was less they are to receive the dif-
ference between the two increases.
(2) Newly covered employees (including commonwealth and
municipal employees) are to have their wage rates set by special
industry committees and this wage rate may not be less than
60 percent of the otherwise applicable rate under section 6(b)
or $1.00 an hour, whichever is greater.
(3) All employees (other than commonwealth and municipal
employees) will receive, beginning one year after the effective
date of this legislation, yearly increases as follows :
(A) increases of 12 cents an hour per year if their wage
order rates are less than $1.40, and
(B) increases of 15 cents an hour per year if their wage
order rates are $1.40 an hour or higher.
Under this provision, when an employee's wage rate reaches
$1.40 he will then receive the 15 cents annual increase. If such an
increase for any employee will result in a wage order rate less than
60 percent of the otherwise applicable minimum wage or $1.00 an
hour, whichever is greater, then the increase for such employee
will be such greater figure.
(4) If a prescribed increase in the wage order rate of an em-
ployee would result in a rate equal to or greater than the otherwise
applicable minimum wage rate of section 6 (a) or (b), the mini-
mum wage rate for that employee will be governed by such section
and such employee will no longer be covered under a wage order.
(5) It is made clear that special industry committees may, in
accordance with section 8, also provide increases in wage order
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24
rates (including rates for commonwealth and municipal em-
ployees).
(6) The authority for hardship review of the increases by
special committees; is discontinued.
(7) The following employees in Puerto Rico and the Virgin
Islands are to have their rates set as if they were employed in the
United States mainland : ho el, motel, restaurant and food serv-
ices employees and United States employees and employees of the
government of the Virgin Islands.
The House bill also provided that special industry committees shall
recommend the otherwise applicable rate under section 6 (a) or 6 (b)
except where substantial documentary evidence, including pertinent
financial information, demonstrates an inability to pay such rate. The
Senate amendment provided. that the same substantial documentary
evidence is required before a speoi.al industry committee could recom-
mend less than $1.60 an hour for newly covered employees. The Senate
receded.
The House bill further provided that a court of appeals may upon
review of a wage order. specify the minimum wage rate to be included
in such wage order. The Senate amendment has no corresponding
provision. The Senate receded.
With respect to Canal Zone employees, the House bill provided that
the increase in the minimum wage prescribed by the 1973 Amend-
ments would not apply, to Canal Zone employees. The Senate amend-
ment had no corresponding provision. The House receded.
The Senate amendment repealed the provision excluding the annual
gross volume of so-called "Moir., and Pop" stores which are part of
enterprises from computation of annual gross volume of such enter-
prises, but continued the exclusion from coverage for such stories. The
House bill. contained no corresponding provision. The Senate receded.
The Senate. amendment exempted from the Act's child labor provi-
sions newsboys delivefing shopping news and advertising material
published by the newspaper, and repealed the child labor, minimum
wage, and overtime exemptions currently applicable to home-workers
engaged in the makin of holly wreaths from evergreens. The House
bill had no oorrespondng provision. The Senate receded.
The House bill contained a minimum wage and overtime exemption
for couples who serve as house-parents for children placed in an insti-
tution primarily operated to provide for their care and education? In-
dividuals would have to be paid not less than $5,000 a year in cash
wages and couples would have; to be paid not less than $10,000 a year
in cash wages. Couples would have to reside on the premises and receive
their board. and lodging without cost but with a provision allowing
up to 30 percent credit against wages for board and lodging. The
Senate amendment provided only an overtime exemption, applied only
to couples who must be paid not less than $10,000 a year in cash wages,
reside on the premises and receive their board and lodging without
cost, and required that employees be employed to serve as parents of
children who are orphans or have on parent decreased. The House
receded.
The House bill required workers employed under service contracts
with the U. S. whose wage rate is prescribed by section 6(e) to be paid
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at the section 6(a) rate. Presently, such employees are to be paid at the
section .6(b) rate unless employed under certain linen supply contracts
with the U.S., in which event they are to be paid at the section 6(a)
rate. The Senate amendment required that all such employees be paid
at the section 6(b) rate. Provision for the section 6(a) rate for certain
linen supply contract employees would be repealed. The House and
Senate agreed to retain the present language of section 6(e).
With regard to youth, the House bill changed existing laws (sees.
14 (b) and (c)) respecting employment of full-time students at less
than the minimum wage by-
(1) expanding employment permitted under these provisions
from retail or service establishments and agriculture to any oc-
cuption other than a specified one or one determined by the Secre-
tary to be particularly hazardous and removing the limit on the
proportion of student hours of employment to total hours of em-
ployment for all employees;
(2) prescribing a new wage floor of the higher of 85 percent of
the otherwise applicable minimum wage or $1.60 (or $1.30 in the
case of agriculture), except for employment in Puerto Rico or
the Virgin Islands where the floor is 85 percent of the otherwise
applicable minimum; and
(p3) except in the case of educational institutions, requiring (A)
a finding of no substantial probability of job displacement if 5 or
more students are to be employed, and (B) a certification by em-
ployer of no reduction in fulltime employment opportunities if
less than 5 students are to be employed. The bill also required a
summary of certificates issued to be included in the annual report.
The Senate amendment changed such law by expanding employment
permitted to include private institutions of higher learning (but re-
taining for employment in retail or service establishments the existing
limit on proportion of student hours of employment, except that in
determining student hours of employment for purposes of such limit
only those student hours (A) worked at less than $1.00 an hour, or (B)
if the applicable State minimum wage law was in the base year at or
above $1.00 an hour, worked in the base year at that minimum wage,
would be included). The amendment retained the existing floor of 85
percent of the otherwise applicable minimum and made no change in
the requirement of a finding of no substantial probability of job dis-
placement before employment permitted, except that in the case of
private institutions of higher learning no prior certification would be
required unless such institutions violate the Secretary's requirements.
The Senate receded with an amendment.
Under the amendment sections 14(a)-(c) will permit the employ-
ment at less than the minimum wage as follows :
1. The Secretary of Labor, to the extent necessary to prevent
curtailment of opportunities for employment, shall by regula-
tions or by orders provide for the employment of learners, ap-
prentices, and for messengers employed primarily in delivering
letters and messages, under special certificates at such wages lower
than the minimum wage applicable under section 6, and subject to
such limitation as to time, number, proportion, and length of
service as the Secretary shall prescribe.
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2. A. Full time students may be employed in retail and service
establishments, at rates not less than 85 percent of the applicable
minimum wage, or $1.60, whichever is higher (or 85 percent of
the section 6 (c) rate in the case of employment in Puerto Rico or
the Virgin Islands) for a period. of up to 20 hours per week (full
time during vacation periods). Up to 4 students may be hired
without the need for traditional pre-certification procedure (that
is, a finding of no substantial probability of job displacement
before the issuance of certificates) or the need to meet the his-
torical experience test concerning the proportion of student hours
worked during a base year, as set forth below. If more than four
students are hired, the existing pre-certification procedure will
continue to apply and the proportion of student hours of employ-
ment (including for this purpose the first four students), to total
hours of employment of all employees, shall not exceed such ;pro-
portion. for the corresponding twelve month period before the
establishment was covered by the Act.
B. Full time students may be employed in agriculture at rates
not less than 85 percent of the applicable minimum wage, or $1.30,
whichever is higher (or 85 percent of the section 6(c) rate in the
case of employment in Puerto Rico or the Virgin Islands) for a
period of up to 20 hours per week (full time during vacation
periods). For each student so employed, after the fourth, the Sec-
retary of Labor must find that such employment will not reduce
the full-time employment of non-students before issuing -er-
tificates..
Cl. Full time students may be employed in higher educational
institutions, at rates not less than 85 percent of the applicable niin-
inuim wage, or $1.60, whichever is higher, for a period of up to
20 hours per week (full time during vacation periods).
The conferees emphasize that the Secretary is to look to the number
of students employed by an employer at any one time and not in a
cumulative Sense, in determining which certification procedure applies
and the applicability of the historical proportion of student employ-
ment pursuant to the provision.
The House bill will also provide it minimum wage and overtime
exemption for students employed by an elementary or secondary school
if the employment constitutes an integral part of the school's regular
education program. The Senate amendment contained no correspond-
ing provision. The Senate receded with an amendment which provides
that the employment must satisfy applicable child labor provisions.
Both the House and Senate versions of the bill expanded the cover-
age of the Fair Labor Standards Act.
The. House bill extended minimum wage and overtime protection
to all employees in domestic service unless such employees' compensa-
tion would not, because of section 209(g) of the Social Security Act
(requiring $5i) in it calendar quarter for social security coverage),
constitute wages for purposes of title II of that Act. Such employees
who reside S n a household wou'd be excluded from coverage. The
Senate amendment covered both day workers and "live-in" domestics,
but provided only minimum wage protection for such employees and
excluded babysitters from coverage.
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The Senate receded to the House provision with an amendment to
include "live-in" household service employees for minimum wage
purposes but exclude them from overtime coverage. The amendment
,also contains a new exemption provision for certain babysitters and
companions.
It is the intent of the conferees to include within the coverage of
the Act all employees whose vocation is domestic service. However,
the exemption reflects the intent of the conferees to exclude from
coverage babysitters for whom domestic service is a casual form of
employment and companions for individuals who are unable because
of age and infirmity to care for themselves. But it is not intended that
trained personnel such as nurses, whether registered or practical, shall
be excluded.
The conferees believe that the people who will be employed in the
excluded categories are not regular bread-winners or responsible for
their families' support. The fact that these people performing casual
services as babysitters or services as companions do some incidental
household work does not keep them from being casual babysitters or
companions for purposes of this exclusion.
The Senate amendment extended minimum wage and overtime pro-
tection to civilian employees in the military departments, employees
in executive agencies, employees of the U.S. Postal Service and the
Postal Rate Commission, legislative and judicial employees in the
competitive service, Library of Congress employees, and employees
employed by any State or political subdivision of a State other than
elected officials and certain aides not covered by civil service or by any
interstate governmental agency. In addition, a limited overtime exemp-
tion was provided for policemen, firemen, and employees of correc-
tional institutions if under an agreement entered into between the em-
ployer and the employee a work period of 28 consecutive days is
accepted in lieu of a workweek of 7 consecutive days and if overtime
compensation is to be paid for employment in excess of 192 hours in
such work period during the first year, 184 hours in such period during
the second year, 176 hours in such period during the third year, 168
hours in such period during the fourth year, and 160 hours in such
period thereafter.
The Senate amendment also provided that the Civil Service Com-
mission would administer application of the Act to Federal employees
other than Postal employees and Library of Congress employees. The
House bill provided minimum wage and overtime protection to em-
ployees of States and their political subdivisions, and minimum wage
protection to all United States employees. Overtime protection ex-
tended to certain United States employees in 1966 was retained. The
House bill also provided an overtime exemption for State and political
subdivision employees engaged in fire protection or law enforcement
activities, and made no specific provision for administration of the
Act. The Secretary of Labor would administer the Act to Federal
employees.
The House receded with an amendment to treat Federal employees
working as policemen, firemen, or in correctional institutions in the
same manner as such State employees for the purposes of overtime.
These special overtime provisions are applicable to Federal law
enforcement and fire protection activities. The conferees note, however,
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that such professional Federal employees as criminal investigators for
the Federal Bureau of Investigation will be exempt by virtue o:f the
provision of section 13 (a) (1).
The con: erees intend that the provisions of section 5341 of title 5,
United States Code, requiring the section 6(a) (1) rate for prevailing
rate system employees; will continue to apply.
The Senate amendment expanded the coverage of large retail and
service activities to include employees of all establishments of chain
operations in which the chain enterprise has gross annual sales of more
than $250,000. The House bill had no similar provision. The Senate
receded with an amendment that phased out the dollar volume estab-
lishment test in sec. 13i(a) (2) as follows :
1. $250,000 until July 1,1974.
2. $21,5,000 on and after J my 1, 1974.
3. $'200,000 on and after July 1, 1975.
4. Repealed July 1,1976.
This provision is applicable equally to employees of certain estab-
lishments which are part of covered enterprises, whether those enter-
prises are complete business entities in and of themselves, or parts
of other unrelated business activities such as in a so-called
conglomerate.
With regard to agricultural employees the Senate .amendment re-
pealed the minimum wage exemption for local seasonal hand harvest
laborers. Further, the days in which an employer employs seasonal
hand harvest laborers would be included in determining if an employer
uses the minimum number of man-days of labor which is required
before minimum wage applies (500 man-days). The House bill con-
tained no such provision. The Senate receded with an amendment to
maintain the exemption for seasonal hand harvest laborers from mini-
mum wage, but to include such workers as employees for purposes of
the man day, test for coverage.
The Senate amendment repealed the limited overtime exemption
provided by sections 7 (c) and 'l (d) for employees or industries found
to be of a seasonal nature or characterized by marked annually recur-
ring seasonal peaks of operation. The House bill contained no such. pro-
vision. The Senate receded with an amendment which provided for a
phase out of section 7(c) and '7(d) exemptions other than for cotton
processing and sugar processing, as follows :
1. On January 1, 1974 the seasonal periods for exemption are
reduced from 10 weeks to '.' weeks and from 14 weeks to 10 weeks.
2. On such date, the workweek exemptions are reduced from
50 hours to 48 hours.
3. Effective 1 ! year after such date, the seasonal periods for
exemption are reduced from 7 weeks to 5 weeks and from 10
weeks to 7 weeks.
4. Effective 2 years after such date, the seasonal periods for
exemption are reduced from 5 weeks to 3 weeks and from 7 weeks
to 5 weeks.
5. Effective three years after such date, sections 7(c) and 7(d)
are repealed.
The Senate amendment provided that the overtime exemption for
cotton ginning and sugar processing employees (other than employees
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engaged in processing maple sap into maple syrup or maple sugar) be
repealed. The House bill contained no such provision. The Senate
receded with an amendment to phase down the overtime exemption for
cotton ginning and sugar processing employees as follows :
1. In 1973, there is no change in the present overtime
exemption.
2. In 1974, the workweek exemption is as follows : 72 hours
each week for 6 weeks of the year; 64 hours each week for 4
weeks of the year; 54 hours each week for 2 weeks of the year;
48 hours each week for the balance of the year.
3. In 1975, the workweek exemption is as follows : 66 hours
each week for 6 weeks of the year; 60 hours each week for 4 weeks
of the year; 50 hours each week for 2 weeks of the year; 46 hours
each week for 2 weeks of the year; 44 hours each week for the
balance of the year.
4. In 1976, the workweek exemption is as follows : 60 hours
each week for 6 weeks of the year; 56 hours each week for 4 weeks
of the year; 48 hours each week for 2 weeks of the year; 44 hours
each week for 2 weeks of the year; 40 hours each week for the
balance of the year.
The workweek exemptions are applicable during the actual season
within a period of twelve consecutive months as opposed to the calen-
dar year and are not limited to a period of consecutive weeks.
In addition, the cotton processing annd sugar processing exemp-
tions under section 7 of the law are retained but limited to 48 hours
during the appropriate weeks. Furthermore, it is provided that an
employer who receives an exemption under this subsection will not
be eligible for other overtime exemptions under section 13(b) (24)
or (25) or section 7.
The Senate amendment repealed the minimum wage and overtime
exemption for employees of motion picture theaters. The House bill
contained no such provision. The Senate receded with an amendment
which repealed the minimum wage exemption and which continues the
overtime exemption for these employees.
The Senate amendment repealed the minimum wage exemption
applicable to foresty and lumbering operations with 8 or fewer em-
ployees. The overtime exemption for such operations is retained. The
House bill had no such provision. The House receded.
The House bill provided for a limited overtime exemption (14
weeks, 10 hours per day, and 48 hours per week) for certain employees
engaged in activities related to the sale of tobacco. Such employees
are currently covered by the section 7 (c) exemption pursuant to deter-
mination by the Secretary. The Senate amendment had no corre-
sponding provision. The Senate receded.
The Senate amendment repealed the minimum wage and overtime
exemption for employees engaged in the processing of shade grown
tobacco prior to the stemming process for use as cigar wrapper to-
bacco. The House bill had no such provision. The Senate receded with
an amendment to maintain the overtime exemption for these
employees.
The Senate amendment repealed the overtime exemption for em-
ployees of oil pipeline transportation companies. The House bill had
no such provision. The House receded.
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The Senate amendment repealed the minimum wage and overtime
exemption for persons engaged in handling telegraph messages for
the public under an agency or contract arrangement with a tele-
graph compa=ny, if they are so engaged in retail or service estab-
lishments exempt under section 13(a) (2) and if the revenues for such
messages are less than, $500 a month. The House bill contained no
corresponding provision. The Senate receded with an amendment to
phase out the overtime exemption as follows :
1. 48 hours in the first year after the effective date.
2, 44 hours in the second year.
3. Repealed thereafter.
The Senalle amendment repealed the overtime exemption for sea-
food canning and processing employees. The House bill contained no
such provision. The Senate receded with an amendment which phases
out the exemption as follows :
1. In the first year after the effective date of the 1973 Amend-
ments, the workweek exemption is 48 hours.
2. In the second year, the workweek exemption is 44 hours.
3. Effective on the beginning of the third year, the exempt=ion
is repealed.
With regard to certain local transit operating employees, the House
bill phased down the overtime exemption in three steps as follows:
During the first year overtime compensation will be required for hours
of employment over 48 in a week, during the second year such compen-
sation will be required for hours of employment over 44 in a week, and
after the second year such compensation will be required for hours
of employment over 42 in a week. In addition, in determining the
hours of employment (for purposes of overtime compensation) of a
bus driver or other local transit operator, the hours of his employment
in charter activities is not to be included if the employment in charter
activities was performed pursuant to an agreement with the employer
and if such employment, is not part of the employee's regular employ-
ment. The Senate amendment contained a similar provision but for all
local transit employees, with the exemption to be repealed in the th~'.rd
year. The House receded. It is noted that by virtue of the conferees'
action on coverage of State and local government employment, to-
gether with its action on overtime pay in the local transit industry,
operating employees of publicly and privately owned transit com-
panies will be -treated identically.
The Senate amendment provided that the overtime exemption -For
employees employed by hotels, motels, and restaurantsbe limited as
follows : During the first year cvertime compensation would be re-
quired for hours of employment over 48 in a week, and after the first
year such compensation would be required for hours of employment
over 46 in a week. The House bill repealed the overtime exemption -For
maids and custodial employees o:-' hotels. The Senate receded with an
amendment which provides that the overtime exemption for hotel,
motel, and restaurant employees be limited as follows : (luring the first
year overtime compensation will be required for hours of employment
in excess of 48 in a week and after the first year such compensation
will be required for hours of employment in excess of 46 in a week. l 'or
maids and custodial employees of hotels and motels the phase down
is as follows :
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1. 48 hours in the first year.
2. 46 hours in the second year.
3. 44 hours in the third year.
4. Repealed thereafter.
The Senate amendment revised the tip credit provisions of the Act
so that they would not apply unless the employer has informed each
of his tipped employees of the tip credit provision and all tips received
by a tipped employee have been retained by such tipped employee
(either individually or through a pooling arrangement).
The House bill contained no such provision. The House receded.
The conferees intend that the employer explain the tip provision of
the Act to the employee, although the explanation may be in the form
of a notice posted on a bulletin board accessible and understandable to
all such employees.
The House bill replaced the limited overtime exemption for employ-
ees of nursing homes (overtime compensation required for hours of
employment in excess of 48 in a week) by an overtime exemption
(initiated by an agreement between the employer and his employees)
which substitutes a 14-consecutive-day work period for the workweek
and requires overtime compensation for employment over 8 hours in
any workday and for over 80 hours in such work period. The Senate
amendment provided that the limited overtime exemption for employ-
ees of nursing homes be further limited as follows : During the first
year overtime compensation would be required for hours of employ-
ment in excess of the current 48 in a week, during the second year such
compensation would be required for hours of employment in excess of
46 in a week, and after the second year such compensation would be
required for hours of employment in excess of 44 in a week. The Senate
receded.
The Senate amendment repealed the 40 percent tolerance for non-
exempt activities by executive and administrative employees of retail
and service establishments, and thereby made applicable to such em-
ployees the 20 percent tolerance for non-exempt activities by all other
executive and administrative employees currently in effect under regu-
lations of the Secretary. The Douse bill contained no corresponding
provision. The Senate receded.
The House bill provided that establishments engaged in laundering,
cleaning, and repairing of clothing or fabrics are to be considered as
service establishments in administration of sections 7(i) (commis-
sion employees) and 13(a) (1) (executive and administrative per-
sonnel and outside salesmen) of the Act. Such activities are not now
considered retail or service under the Act. The Senate amendment
contained no corresponding provision. The House receded.
The Senate amendment provided that the existing overtime exemp-
tion for partsmen and mechanics in nonmanufacturing establishments
primarily engaged in selling automobiles, trailers, or trucks be re-
pealed ; that the overtime exemption for salesmen, partsmen, and
mechanics in nonmanufacturing establishments engaged in selling air-
craft be repealed ; that the overtime exemption for salesmen in auto-
mobiles, trailer, or truck sales establishments be retained, and that the
overtime exemption for salesmen, partsmen, and mechanics in farm
implement sales establishments be retained. The House bill contained
no similar provisions but added an overtime exemption for salesmen,
partsmen, and mechanics who are employed by nonmanufacturing es-
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tablishments engaged in boat sales and who sell or service boats. The
Senate receded with an': amendment under which : the overtime exemp-
tion for partsmen and mechanics in nonmanufacturing establishments
primarily engaged in selling trailers is repealed; the overtime exemp-
tion for partsmen and mechanics in nonmanufacturing establishments
engaged in selling aircraft is repealed; the overtime exemption for
salesmen in automobile, trailer, truck sales and aircraft establishments
is retained; the overtime exemption for salesmen, partsmen, and mech-
anics in farm implement sales establishments is retained; the exerap-
tion for partsmen and mechanics in automobile and truck sales
establishments is retained and; a:a overtime exemption is provided for
salesmen engaged in selling boats.
The Senate amendment provided that the overtime exemption for
food service establishment employees be repealed as follows : During
the first year overtime compensation would be required for hours of
employment over 48 in a week, during the second year such compensa-
tion would be required for hours of employment over 44 in a week, and
thereafter such compensation would be required for employment, in
excess of 40 hours in a' week. The House bill contained no such pro-
vision. The House receded.
The Senate amendment provided that the limited overtime exemp-
tion for employees of bowling establishments (overtime compensation
required for hours in excess of 48 in a week) be repealed in two steps
as follows : During the second year after enactment overtime comper.Lsa-
tion would be, required-for hours in excess of 44 in a week, and there-
after such compensation would be required for hours of employment
in excess of 40 in a week. The House bill contained no such provision.
The House receded.
The House bill provided that certain of the minimum wage and
overtime exemptions provided in sections 13(a) and 13(b) would not
apply to a business establishment which controls, is controlled by, or is
under common control with, bur, not related for a common business
purpose to another establishment, if the combined sales or business
volume of such establishments exceeded $10,000,000. The Senate
amendment had no comparable provision. The House receded with an
amendment under which the minimum wage exemptions provided in
section 13(a) (2) for certain seta .l and service establishments, and sec-
tion 13(a) (ti) relating to agricultural employees, would not be avail-
able to an establishment which controls, is controlled by, or under
common control with, another establishment the activities of which are
not related for a common business purpose, but materially support the
activities of the first establishment and the combined gross volume of
the conglomerate is more than $10,000,000. Also the section 13(a) (2)
minimum wage exemption, relating to retail and service estabL.sh-
ments, would be phased out for establishments which are part of con-
glomerates on the same schedule as applicable to the phase-out of the
same exempi,ion in the case of chain stores.
It is not the intention of the conferees that this provision shall ap-
ply on a mere showing of ownership or common control. Some rela-
tionship must exist demonstrating some interdependence for treating
otherwise separate businesses as a unit for purposes of denying the
exemptions from section 6 which would otherwise be available under
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sections 13(a) (2) and 13(a) (6). Finally, nothing in this provision
affects any overtime exemption or any minimum wage exemption other
than those provided for retail and service establishments under sub-
section 13(a) (2) or agricultural employees under section 13 (a) (6).
With regard to child labor the Senate amendment provided as
follows :
1. The employment of children under age 12 in agriculture is
prohibited unless they are employed on farms owned or operated
by their parents or guardians, and children who are 12 or 13 may
work in agriculture only if they have the written consent of their
parents or guardians or if the parent or guardian is employed
on the same farm. Existing law permits the employment (outside
of school hours) of children of any age on farms in nonhazardous
occupations.
2. Any person who violates the child labor provisions of the
Act (or any regulation issued under such provisions) is subject
to a civil penalty of not to exceed $1,000 for each such violation.
3. The Secretary of Labor may issue regulations requiring
employers to obtain from any employee proof of the employee's
age.
The House bill contained no similar provision. The Senate receded
with an amendment that the provisions of this section (described in
paragraph (1) above) shall not become effective until January 1,
1974, that the provisions prohibiting the employment of children
under 12 on farms other than those owned or operated by their par-
ents shall apply only in the case of employment on farms covered
by the Act under the 500 man-day test, including conglomerate farms,
and that parental consent shall be required for such children on non-
covered farms.
The Senate amendment provided that the tip credit provision of
the Act is not to apply unless the employer has informed each of his
tipped employees of the tip credit provision and all tips received by
tipped employees have been retained by them (either individually or
through a pooling arrangement). The House bill contained no such
provision. The House receded.
The Senate amendment amended the Age Discrimination in
Employment Act of 1967 to include within the scope of its coverage
Federal, State, and local government employees (other than elected
officials and certain aides not covered by civil service), and to expand
coverage from employers with 25 or more employees to employers
with 20 or more employees. The annual authorization of appropria-
tions ceiling was raised from $3 million to $5 million. The Age Dis-
crimination in Employment Act prohibits discrimination in employ-
ment on the basis of age in matters of hiring, job retention, compensa-
tion, and other terms, conditions, or privileges of employment.
Protection under the Act is limited to individuals who are between
the ages of 40 and 65. The House bill contained no similar provisions.
The Senate receded.
The Senate amendment amended section 16(c) to authorize the
Secretary not only to sue for back wages (which he can do now) but
also to sue for an equal amount of liquidated damages without requir-
ing a written request from the employee. The Secretary could also sue
even though the suit might involve issues of law that have not been.
finally settled by the courts. In the event the Secretary brings such
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action on behalf of himself. or to become party to such an action would
terminate, unless such action is dismissed without prejudice, on motion
by the Secretary. The House bill contained no similar provision. The
House receded.
The. Senate amendment &mended section 9 of the Walsh-Healey Act
to extend to employees of regulated private carriers the exemption
from that Act presently applicable to employees of regulated common
carriers. The House bill contained no similar provision. The Senate
receded.
The. Senate amendment contained a provision making clear the
right of employees of State and local governments to bring private
actions under Section 16(b) it Federal or State courts of competent
jurisdiction for recovery under the Act. This provision was intended
to overcome the decision of the Supreme Court in Employees of the
Department of Public Health and Welfare v. Missouri, 93 S. Ct. 1614
(April 18. 1973) which held that Congress, in extending coverage
under the 1966 amendments to certain employees of State and local
governments had not explicitly provided an individual right of action
in the Federal courts. The Senate amendment also provided an amend-
ment to the Portal to Portal Act of 1947 which would preserve indi-
vidual rights of action of State or local government employees which
would otherwise be barred by the statute of limitations as a result of
the Supreme Court's decision. A further provision made clear the
right of Federal employees to bring an action in Federal or State
court against the United States under Section 16(b) of the Act, in
addition to the administrative remedies provided in the Senate
amendment.
The House bill containec'_ no similar provisions. The Senate receded
with an amendment providing that employees of a public agency (de-
fined to include the Government and agencies of the United States, a
State or political subdivision, or any interstate governmental agency)
may maintain an action against that public agency under section
16(b) in any Federal or State court of competent jurisdiction, and
suspending; the statute of limitations to preserve rights of actions of
State or local governitient employees which would otherwise be barred
as a result of the Supreme Court's decision. It is emphasized that, this
provision is a limited suspension of the statute of limitations and is
applicable only to certain public employees.
The Secretary would be required by the Senate amendment to con-
duct studies (1). on the economic effects of the changes made in the
minimum wage and overtime coverage, and (2) on the justification or
lack thereof for each of the exemptions provided by sections 13(a)
and 13 (b), The report on the study described in clause (1) would be
due not later than January 1, 1975, and the report on the study de-
scribed in clause (2) would be due not later than January 1, 1976, The
House bill contained no corresponding provision. The Senate receded
with an amendment providing that these studies be provided for under
section 4(d) of the Act and also requiring that such studies include
an examination of the extent to which employees of conglomerates
receive the section 13' (a) and (b) exemptions and the economic effect
of their inclusion in such exemptions.
The Secretary would have been required by the Senate amendment
to contract for a study to determine the extent (if any) of the impact
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on employment of each increase in the minimum wage prescribed by
the 1973 Amendments and to develop the necessary information on the
probable impact (if any) on employment of future increases in
minimum wages. Ninety days prior to the effective date of each in-
crease described by such. Amendments, the Secretary is to provide the
Congress with an employment impact statement establishing the prob-
able impact on employment by category of employment of each such
increase, together with a summary of the basis for each statement.
(The House bill cont4ined no corresponding provision.) The Senate
receded.
The Senate amendment amended the Economic Stabilization Act of
1970 to provide that the President shall make appropriate adjustments
in the maximum price which may be charged under the provisions of
Executive Order 11723 (dated June 13, 1973), or any subsequent
Executive order promulgated under that Act, for any agricultural
commodity (at any point in the distribution chain) as to which the
Secretary of Agriculture certifies to the President that the supply of
the commodity will be reduced to unacceptably low levels as a result
of any price controls or freeze order (or regulation) promulgated
under that Act and that alternative means for increasing the supply
are not available. The House bill contains no corresponding provision.
The Senate receded.
The Senate amendment provided that the effective date of the Act
is the 60th day following the date of the enactment of the bill. The
Houes bill provided that the effective date is the first day of the second
full month which begins after the date of the enactment of the bill,
or August 1, 1973, whichever occurs first. The Senate receded with an
amendment to make the effective date of the Act the first day of the
second full month after the date of enactment.
HARRISON A. WILLIAMS, Jr.,
JENNINGS RANDOLPH,
CLAIBORNE PELL,
GAYLORD NELSON,
THOMAS F. EAGLETON,
HAROLD E. HUGHES,
WILLIAM D. HATHAWAY,
J. DAVITS,
RICHARD S. SCHWEIKER,
ROBERT T. STAFFORD,
Managers on the Part of the Senate.
CARL D. PERKINS,
FRANK THOMPSON, Jr.,
JOHN H. DENT,
DOMINICK V. DANIELS,
PHILLIP BURTON,
JOSEPH M. GAYDos,
W. CLAY,
MARIO BIAGGI,
ROMANO L. MAZZOLI,
Managers on the Part of the House.
0
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93D CONGRESS SENATE J REPORT
1st Session No. 93-301
JULY 6, 1973.-Ordered to be printed
Filed under authority of the order of the Senate of June 30, 1973
Mr. WILLIAMS, from the Committee on Labor and Public Welfare,
submitted the following
REPORT
The Committee on Labor and Public Welfare, to which was referred
the bill (H.R. 7935) to amend the Fair Labor Standards Act of 1938
to increase the minimum wage rates under that act, to expand the
coverage of that act, and for other purposes, having considered the
same, reports thereon without recommendation.
O
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