Present law

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]

I. MINIMUM HOURLY WAGE FOR MAINLAND EMPLOYEES

S. 1861 (Messrs. Williams and Javits) (identical,
except as specifically noted to S. 1861 as
passed by the Senate, 92d Cong.)

S. 1725 (Messrs. Dominick and Taft)

H.R. 7935 (as reported)

(a) Nonagricultural workers:

(1) Covered prior to 1966 amendments, $1.60 $2 during 1st year; and $2.20 thereafter (also
includes Federal employees covered by 1966
amendments).1
(2) Covered by the 1966 amendments, $1.60 $1.80 during 1st year; $2 during 2d year; $2.20

(b) Agricultural workers, $1.30.

thereafter (also includes employees covered
by the 1973 amendments).
$1.60 during 1st year; $1.80 during 2d year; $2
during 3d year; $2.20 thereafter.

$1.80 during 1st year; $2 during 2d year; $2.10 $2 until June 30, 1974; $2.20 thereafter.
during 3d year; $2.20 during 4th year; $2.30
thereafter.

Same as for those covered prior to 1966 amend-
ments. (Also includes employees covered by
the 1973 amendments).
$1.50 during 1st year; $1.70 during 2d year;
$1.90 thereafter.

II. OVERTIME PAY REQUIREMENTS

11⁄2 times the regular rate for hours over 40 in any work No change from present law. week.

No change from present law.

$1.80 until June 30, 1974; $2 thereafter until
June 30, 1975: $2.20 thereafter. (Also includes
employees covered by the 1973 amendments).
$1.60 until June 30, 1974; $1.80 thereafter until
June 30, 1975; $2 thereafter until June 30,
1976; $2.20 thereafter.

No change from present law.

Determined by special industry committees, but not over $1.60.

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

Employees making less than $0.80 per hour under
most recent wage order, raised to $1 during
the 1st year from the effective date. There-
after, their pay is increased by $0.20 per hour
each year until parity is achieved.
Employees over $0.80 per hour are raised $0.20

per hour each year on the effective date of the
1973 amendments and $0.20 until parity is
achieved.

Employees newly covered by the 1973 amend-
ments will have minimums set (but not below
$1 per hour) by newly appointed special
industry committees. Upon the setting of
such minimums, the raises for previously
covered employees go into effect.

Each year, special industry committees may
increase the $0.20 per hour raise, but they
may not lower it.

Certain motel, hotel, restaurant, food service,
and government employees are brought up to

1 S. 1861, as passed, provided a $ 2 rate during the 2d year.

Provides for three increases, each of 121⁄2 per-
cent of the rate or rates applicable under the
most recent wage order prior to these amend-
ments, the first to become effective 60 days
after enactment or one year from effective
date of the most recent applicable wage
order-whichever is later, the second to be-
come effective one year later, the third one
year after that. These increases may be super-
seded by rates prescribed in wage orders
issued pursuant to review-committee recom-
mendation, to prevent substantial curtailment
of employment in the industry.

S. 1725 does not change the present law's special
industry committee system for Puerto Rico
and the Virgin Islands.

For hotel, motel, restaurant, food service, con-
glomerate, Federal employee and employees
of the government of the Virgin Islands, mini-
mum wages the same as those for counterpart
mainland employees.

For other employees presently covered by a wage
order, percentage increases, as follows:

For nonagricultural employees covered
before 1966 amendments, 25-percent
increase during 1st year and 12.5-
percent increase during 2d year.
For nonagricultural employees covered by
1966 amendments, 3 12.5-percent in-
creases effective in each of the first 3
years.

For agricultural employees, 3 15.4-percent
increases effective in each of the first 3
years (subsidized agricultural employees
will have their increases applied to their
wage rates as increased by the subsidy).

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]

2

Coverage for minimum wage only included for No change from present law. domestic service employees, except babysitters.

Such increases may be reviewed by industry
committees appointed by the Secretary of
Labor.

Provides for special industry committees to
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.

Coverage added for Federal, State, and local
government employees not subject to the
present law, except that the following are
exempt from overtime provisions: Newly
covered Federal employees, and State and local
employees engaged in fire protection or law
enforcement activities.

Coverage under minimum wage and overtime
provisions for domestic service employees,
except for employees residing in their em-
ployer's household.

3

of Labor to study minimum wage and overtime
exemptions under section 13 of present law,
and submit to Congress within 3 years his rec-
ommendations as to whether each exemption
should be continued, removed, or modified.

Minimum wage and overtime exemption re- No change from present law. Requires Secretary
pealed for: Motion picture theater employees;
Shade grown tobacco employees engaged in
processing such tobacco; certain telegraph
agency employees; certain employees of
retail-manufacturing establishments,
Minimum wage exemption only repealed for:
Logging and sawmill employees.

Overtime exemption repealed for: Agricultural,
processing, seafood processing, oil pipeline,
cotton ginning, and sugarcane and sugar beet
processing employees, partsmen and mechan-
ics in auto, truck, and trailer dealerships, and
all employees in aircraft dealerships.
Other overtime exemptions modified as follows:

Local transit employees: 48 hours 1st year; 44
hours 2d year; 40 hours thereafter.
Provides for an exemption for voluntary work
performed by employees of a local transit
company in nonregular charter activities
which are covered by prior agreements.
Hotel, motel, and restaurant employees: 48 hours
1st year; 46 hours thereafter.

Nursing home employees: 48 hours 1st year; 46
hours 2d year; 44 hours thereafter.
Catering and food service employees: 48 hours
1st year; 44 hours 2d year; 40 hours there-
after.

Bowling employees: 48 hours retained for 1st
year; 44 hours 2d year; 40 hours thereafter,
Creates new overtime exemptions for domestic
service employees.1

Do.

Minimum wage and overtime exemptions re-
pealed for employees of conglomerates with
over $10 million in annual sales.
Minimum wage and overtime exemption extended
to resident house parents (husband and wife)
of orphans residing in nonprofit educational
institutions, if couple earns at least $10,000 per
year on cash basis from such employment.
Adds an overtime exemption for newly covered
Federal employees, and newly covered State
and local government employees engaged in
fire protection or law enforcement activities.
Adds an overtime exemption for boat salesmen
and mechanics employed in boat dealerships,
comparable to present overtime exemption for
employees in auto, trailer, truck, farm imple-
ment, or aircraft dealerships.

Repeals overtime exemption for maids and
custodial employees of hotels and motels.
Repeals overtime exemptions for employees in
seasonal industries and agricultural processing,
in stages to 40 hours after 2 years, except
retains existing overtime exemption appli-
cable to certain employees engaged in seasonal
activities related to the sale of tobacco.

Repeals overtime exemption for local transit
employees for work over 48 hours per week
during 1st year; 44 hours per week during
2d year; 42 hours thereafter. Hours volun-
tarily employed in charter activities, if not
part of employee's regular employment, ex-
cluded in determining hours for overtime
purposes.

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.

PROPOSED FAIR LABOR STANDARDS AMENDMENTS OF 1973, 93D CONGRESS-Continued [Comparison of principal provisions of S. 1861 with present law, S. 1725, and H.R. 7935 as reported] VI. MISCELLANEOUS PROVISIONS

4

S. 1861 (Messrs. Williams and Javits)

S. 1725 (Messrs. Dominick and Taft)

H.R.7935 (as reported)

No change from present law.

Tip credit to meet the minimum rate retained No change from present law.
at 50 percent of the minimum rate. The
employer must inform each of his tipped
employees of the provisions of the law
regarding tipping. All tips received must be
retained by such tipped employees.
Under 12, may not work in agriculture except on

farms owned or operated by the parent.
Between 12 and 14, may work on a farm only
with consent of the parent.
Between 12 and 16, may work in agriculture only

during hours when school district where em-
ployee living while employed is not in session.
Provides for a civil penalty of up to $1,000 for
any violation of child labor provisions of the
Fair Labor Standards Act.
Authorizes the Secretary of Labor to issue regu-
lations requiring employers to obtain proof of
age from any employee.1

Retains present provisions of the Fair Labor
Standards Act. Expands student certificate
program to include students employed part-
time by educational institutions and those
employed full-time during school vacations by
such institutions.

Under 12, may not work in agriculture except on
farms owned or operated by the parent.
Between 12 and 14, may work on a farm only
with consent of the parent.

Between 12 and 16, may work in agriculture only
during hours when school district where em-
ployee living is not in session.

Provides a child labor exemption for anyone
engaged in delivering shopping news and
advertising materials published by a news-
paper.

Authorizes the Secretary of Labor to issue reg-
ulations requiring employers to obtain proof
of age from any employee.
Provides for civil penalty of up to $1,000 for
any violation of child labor provisions.
Provides for employment of youths under 18
(for not more than 180 days) and of full-time
students (employed full- or part-time at the
educational institution they attend, or part-
time (not more than 20 hours per week) at
any job) at wage rates not less than 85 per-
cent of the applicable minimum wage or $1.60
an hour ($1.30 an hour in agriculture), which-
ever is higher.

Requires Secretary of Labor to issue regulations
insuring that the special minimum rates for
youth will not create a substantial probability
of reducing the full-time employment oppor-
tunities of adult workers.
Removes present law's requirements in secs.
14(b) and (c) that employers receive U.S.
Labor Department certification in order to
employ youths at special minimum rates.

S. 1861, as passed, provided a child labor exemption for newsboys delivering shopping news and advertising materials published by a newspaper.

VII. EFFECTIVE DATE

5

60 days after date of enactment

2 S. 1861, as passed, provided that the amendments would not be applicable to the Canal Zone and that the minimum rate in the Canal Zone would be $1.70 after the 1st year.

* Similar proposals are contained in S. 635 (Bentsen) and S. 1810 (Church).

60 days after date of enactment..

1st day of 2d full month after date of enactment
or August 1, 1973, whichever occurs first.

Note: S. 1861, as passed, provided for a criminal penalty for employees who knowingly employ aliens in violation of immigration laws.