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93d Congress 1st Session

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COMMITTEE PRINT

PROPOSED FAIR LABOR STANDARDS

AMENDMENTS OF 1973

Comparison of Principal Provisions of S. 1861 (Messrs.

Williams and Javits) identical except as specifically noted to S. 1861, as passed by the Senate in the 92d Congress, with present law, S. 1725 (Messrs. Dominick and Taft) and H.R. 7935 as reported by the House Education and Labor Committee.

PREPARED BY THE

SUBCOMMITTEE ON LABOR

OF THE

COMMITTEE ON LABOR AND

PUBLIC WELFARE

UNITED STATES SENATE

JUNE 1973

Printed for the use of the Committee on Labor and

Public Welfare

U.S. GOVERNMENT PRINTING OFFICE

89-029

WASHINGTON : 1973

COMMITTEE ON LABOR AND PUBLIC WELFARE

HARRISON A. WILLIAMS, JR., New Jersey, Chairman JENNINGS RANDOLPH, West Virginia

JACOB K. JAVITS, New York CLAIBORNE PELL, Rhode Island

PETER H. DOMINICK, Colorado EDWARD M. KENNEDY, Massachusetts RICHARD S. SCHWEIKER, Pennsylvania GAYLORD NELSON, Wisconsin

ROBERT TAFT, JR., Ohio WALTER F. MONDALE, Minnesota

J. GLENN BEALL, JR., Maryland
THOMAS F. EAGLETON, Missouri

ROBERT T. STAFFORD, Vermont
ALAN CRANSTON, California
HAROLD E. HUGHES, Iowa
WILLIAM D. HATHAWAY, Maine

STEWART E. MCCLURE, Chief Clerk
ROBERT E. NAGLE, General Counsel
Roy H. MILLENSON, Minority Chief Clerk
EUGENE MITTELMAN, Minority Counsel

SUBCOMMITTEE ON LABOR

HARRISON A. WILLIAMS, JR., New Jersey, Chairman JENNINGS RANDOLPH, West Virginia

JACOB K. JAVITS, New York CLAIBORNE PELL, Rhode Island

RICHARD S. SCHWEIKER, Pennsylvania GAYLORD NELSON, Wisconsin

ROBERT TAFT, JR., Ohio
THOMAS F. EAGLETON, Missouri

ROBERT T. STAFFORD, Vermont
HAROLD E. HUGHES, Iowa
WILLIAM D. HATHAWAY, Maine

GERALD M. FEDER, Counsel
DONALD E. ELISBURG, A88ociale Counsel
EUGENE MITTELMAN, Minority Labor Counsel

(IT)

PROPOSED FAIR LABOR STANDARDS AMENDMENTS OF 1973, 93D CONGRESS

[Comparison of principal provisions of S. 1861 with present law, S. 1725, and H.R. 7935 as reported]

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(a) Nonagricultural workers:
(1) Covered prior to 1966 amendments, $1.60.- $2 during 1st year; and $2.20 thereafter (also $1.80 during 1st year; $2 during 2d ear; $2.10 $2 until June 30, 1974; $2.20 thereafter.

includes Federal employees covered by 1966 during 3d year; $2.20 during 4th year; $2.30
amendments).

thereafter.
(2) Covered by the 1966 amendments, $1.60. $1.80 during 1st year; $2 during 2d year; $2.20 Same as for those covered prior to 1966 amend- $1.80 until June 30, 1974; $2 thereafter until

thereafter (also includes employees covered ments. (Also includes employees covered by June 30, 1975: $2.20 thereafter. (Also includes
by the 1973 amendments).
the 1973 amendments).

employees covered by the 1973 amendments). (b) Agricultural workers, $1.30.

$1.60 during 1st year; $1.80 during 2d year; $2 $1.50 during 1st year; $1.70 during 2d year; $1.60 until June 30, 1914; $1.80 thereafter until
during 3d year; $2.20 thereafter.
$1.90 thereafter.

June 30, 1975; $2 thereafter until June 30,
1976; $2.20 thereafter.

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II, OVERTIME PAY REQUIREMENTS

192 times the regular rate for hours over 40 in any work No change from present law.

week.

No change from present law.

No change from present law.

III, MINIMUM HOURLY WAGE FOR EMPLOYEES IN PUERTO RICO AND VIRGIN ISLANDS

Determined by special industry committees, but not Employees making less than $0.80 per hour under Provides for three increases, each of 1272 per- for hotel, motel, restaurant, food service, con-
over $1.60.

most recent wage order, raised to $1 during cent of the rate or rates applicable under the glomerate, Federal employee and employees
the 1st year from the effective date. There- most recent wage order prior to these amend- of the government of the Virgin Islands, mini-
after, their pay is increased by $0.20 per hour ments, the first to become effective 60 days mum wages the same as those for counterpart
each year until parity is achieved.

after enactment or one year from effective mainland employees.
Employees over $0.80 per hour are raised $0.20 date of the most recent applicable wage For other employees presently covered by a wage

per hour each year on the effective date of the order-whichever is later, the second to be- order, percentage increases, as follows:
1973 amendments and $0.20 until parity is come effective one year later, the third one For nonagricultural employees covered
achieved.

year after that. These increases may be super- before 1966 amendments, 25-percent
Employees newly covered by the 1973 amend- seded by rates prescribed in wage orders increase during 1st year and 12.5-
ments will have minimums set (but not below issued pursuant to review-committee recom-

percent increase during 2d year.
$1 per hour) by newly appointed special mendation, to prevent substantial curtailment For nonagricultural employees covered by
industry committees. Upon the setting of of employment in the industry.

1966 amendments, 3 12.5-percent in-
such minimums, the raises for previously S. 1725 does not change the present law's special creases effective in each of the first 3
covered employees go into effect.

industry committee system for Puerto Rico years.
Each year, special industry committees may and the Virgin Islands.

For agricultural employees, 3 15.4-percent
increase the $0.20 per hour raise, but they

increases effective in each of the first 3 may not lower it.

years (subsidized agricultural employees Certain motel, hotel, restaurant, food service,

will have their increases applied to their and government employees are brought up to

wage rates as increased by the subsidy). 1 S. 1861, as passed, provided a $2 rate during the 2d year. PROPOSED FAIR LABOR STANDARDS AMENDMENTS OF 1973, 93D CONGRESS

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[Comparison of principal provisions of S. 1861 with present law, S. 1725, and H.R. 7935 as reported}

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mainland minimums on the effective date of

Such increases may be reviewed by industry the amendments.

committees appointed by the Secretary of Subsidized agricultural employees will have

Labor. their increases applied to their wage rates as

Provides for special industry committees to increased by the subsidy.

recommend minimum rates for employees

covered by 1973 amendments.
Requires all industry committees to recommend

the minimum rates applicable to counterpart
mainland employees, except where substan-
tial documentary evidence demonstrates

inability to pay.
Notwithstanding any other provision, no

minimum rate shall be less than 60 percent
of the minimum applicable to counterpart

mainland employees. (a) Government employees:

Limited coverage of some government em- Coverage for all Federal, State, and local govern- Coverage added for Federal, State, and local Coverage added for Federal, State, and local

ployees (Federal wage board workers, ment employees, except persons serving in government employees not subject to the government employees not subject to the government employees in State and local the armed services and certain persons not present law, but such newly covered em- present law, except that the following are government operated schools, nursing in- in the competitive service.

ployees are exempted from overtime exempt from overtime provisions: Newly
stitutions, hospitals. Federal hospitals not With regard to overtime, a special provision for provisions.

covered Federal employees, and State and local
covered.)
a mutually agreed to 28-day work period is

employees engaged in fire protection or law
made for averaging overtime hours for State

enforcement activities.
and local law enforcement (including security
personnel in correctional institutions) and fire
protection employees. Scales down the non-
overtime work period during a 28-day work

cycle from 192 hours to 160 hours over 4 years.
(b) Domestic service employees:
No coverage-
Coverage for minimum wage only included for No change from present law.

Coverage under minimum wage and overtime domestic service employees, except baby

provisions for domestic service employees, sitters.

except for employees residing in their em

ployer's household.
(c) Retail and service employees:
No coverage if annual gross sales volume is Coverage of retail and service establishment Do.

No change from present law.
below $250,000 (except for specifically employees working in all stores in a large
listed establishments in "Enterprise" defi- chain.
nition; laundering, cleaning, or repairing

clothes or fabrics).
(d) Agricultural workers:
No coverage unless the employer used more Minimum wage coverage expanded to include Do.

Do.
than 500 man-days of agricultural labor local seasonal hand harvest laborers. These
during peak quarter in the past calendar are also included for purposes of calculating

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year. Local seasonal hand harvest laborers number of man-days of labor used by a farm. not counted for purposes of man-day test 500 man-day test retained for purposes of and excluded from minimum wage.

determining which farms are covered.
Parents, spouse, child or other member of No change from present law.

employer's immediate family are not
covered employees in agriculture.

V. EXEMPTIONS

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Minimum wage and overtime exemption re- No change from present law. Requires Secretary Minimum wage and overtime exemptions re

pealed for: Motion picture theater employees; of Labor to study minimum wage and overtime pealed for employees of conglomerates with
Shade grown tobacco employees engaged in exemptions under section 13 of present law, over $10 million in annual sales.
processing such tobacco; certain telegraph and submit to Congress within 3 years his rec- Minimum wage and overtime exemption extended
agency employees; certain employees of ommendations as to whether each exemption to resident house parents (husband and wife)
retail-manufacturing establishments,

should be continued, removed, or modified. of orphans residing in nonprofit educational
Minimum wage exemption only repealed for:

institutions, if couple earns at least $10,000 per
Logging and sawmill employees.

year on cash basis from such employment.
Adds an overtime exemption for newly covered

Federal employees, and newly covered State
Overtime exemption repealed for: Agricultural, Do.

and local government employees engaged in
processing, seafood processing, oil pipeline,

fire protection or law enforcement activities. cotton ginning, and sugarcane and sugar beet

Adds an overtime exemption for boat salesmen processing employees, partsmen and mechan

and mechanics employed in boat dealerships, ics in auto, truck, and trailer dealerships, and

comparable to present overtime exemption for all employees in aircraft dealerships.

employees in auto, trailer, truck, farm impleOther overtime exemptions modified as follows:

ment, or aircraft dealerships. Local transit employees: 48 hours 1st year; 44

Repeals overtime exemption for maids and hours 2d year; 40 hours thereafter.

custodial employees of hotels and motels. Provides for an exemption for voluntary work

Repeals overtime exemptions for employees in performed by employees of a local transit

seasonal industries and agricultural processing, company in nonregular charter activities

in stages to 40 hours after 2 years, except which are covered by prior agreements.

retains existing overtime exemption appliHotel, motel, and restaurant employees: 48 hours

cable to certain employees engaged in seasonal 1st year; 46 hours thereafter.

activities related to the sale of tobacco. Nursing home employees: 48 hours 1st year; 46

Repeals overtime exemption for local transit hours 2d year; 44 hours thereafter.

employees for work over 48 hours per week Catering and food service employees: 48 hours

during 1st year; 44 hours per week during 1st year; 44 hours 2d year; 40 hours there

2d year; 42 hours thereafter. Hours volunafter.

tarily employed in charter activities, if not Bowling employees: 48 hours retained for 1st

part of employee's regular employment, exyear; 44 hours 2d year; 40 hours thereafter,

cluded in determining hours for overtime Creates new overtime exemptions for domestic

purposes. service employees.1

Repeals present overtime exemption for nursing

home employees and provides these employees
with overtime exemption identical to present
exemption for hospital employees, that is, an
overtime exemption for work up to 8 hours in

a workday and 80 hours in a 2-week period.
Treats laundry and drycleaning establishments

as service establishments with respect to
present law's provisions concerning outside
salesmen and commission employees.

1 S. 1861, as passed, provided for an exemption for resident employees in certain apartment buildings, resident houseparents in orphan homes, and certain driver-salesmen in wholesale dry-cleaning.

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