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1 words "public or private or conducted for profit or not for 2 profit, or whether".

3 (2) The second sentence of such subsection is amended 4 to read as follows: "For purposes of this subsection, the 5 activities performed by any person or persons in connection 6 with the activities of the Government of the United States or of any State or political subdivision of any State shall be 8 deemed to be activities performed for a business purpose.". 9 (f) (1) The first sentence of section 3 (s) of such Act is 10 amended (A) by inserting after the words "means an enter11 prise", the parenthetical clause "(whether public or private

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or operated for profit or not for profit and including activities

13 of the Government of the United States or of any State or 14 political subdivision of any State)", (B) by striking the 15 word "employees" the first two times it appears in such 16 sentence, and inserting in lieu thereof the words "any 17 employee".

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(2) The last sentence of section 3 (s) of such Act is 19 amended to read as follows: "Any establishment which has

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as its only regular employee the owner thereof or the parent,

spouse, child, or other member of the immediate family of 22 such owner shall not be considered to be an enterprise en23 gaged in commerce or in the production of goods for com24 merce or a part of such an enterprise.".

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1 (g) Section 5 of such Act is amended by adding at the 2 end thereof the following new subsections:

3 "(e) The provisions of this section and section 8 shall 4 not apply with respect to the minimum wage rate of any 5 employee in Puerto Rico or the Virgin Islands employed 6 (1) by an establishment which is a hotel, motel, or restau7 rant, (2) by any other retail or service establishment if 8 such employee is employed primarily in connection with the 9 preparation or offering of food or beverages for human con10 sumption, either on the premises, or by such services as 11 catering, banquet, box lunch, or curb or counter service, to 12 the public, to employees, or to members or guests of mem13 bers of clubs, or (3) by any employer which is a State or a 14 political subdivision of any State. The minimum wage rate of 15 such an employee shall be determined in accordance with 16 sections 6 (a) or (b), 13, and 14 of this Act.

17 "(f) The provisions of this section and section 8 shall 18 not operate to permit a wage order rate lower than that which 19 would result under the provisions of section 6 (c).".

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MINIMUM WAGES

SEC. 3. (a) Section 6 (a) (1) of the Fair Labor Stand

22 ards Act of 1938, as amended, is amended to read as follows:

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"(1) (A) not less than $2.00 an hour during the

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first year from the effective date of the Fair Labor Standards Amendments of 1973, and

"(B) not less than $2.20 an hour thereafter.”

(b) Section 6 (a) (5) of such Act is amended to read 5 as follows:

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"(5) if such employee is employed in agriculture, not less than $1.60 an hour during the first year from the effective date of the Fair Labor Standards Amend

ments of 1973, not less than $1.80 an hour during the second year from such date, not less than $2.00 an hour during the third year from such date, and not less than $2.20 an hour thereafter."

(c) Section 6(b) of such Act is amended

(1) by inserting after the words "Fair Labor Standards Amendments of 1966,", the words "or the Fair Labor Standards Amendments of 1973,";

(2) by striking out paragraphs (1) through (5) thereof and inserting in lieu thereof the following:

"(1) not less than $1.80 an hour during the first year from the effective date of the Fair Labor Standards Amendments of 1973;

"(2) not less than $2.00 an hour during the

second year from such date; and

"(3) not less than $2.20 an hour thereafter.".

(d) Section 6(c) is amended by striking out para

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1 graphs (2), (3), and (4) and inserting in lieu thereof the

2 following:

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"(2) In the case of any such employee who is covered

4 by such a wage order to whom the rate or rates prescribed

5 by subsection (a) or (b) would otherwise apply the following rates shall apply:

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"(A) During the first year from the effective date of the Fair Labor Standards Amendments of 1973, for any employee whose highest rate is less than $0.80 an hour, such rate shall not be less than $1.00 an hour.

"(B) During the first year from the effective date

of the Fair Labor Standards Amendments of 1973, for any employee whose highest rate is $0.80 an hour or more, such rate shall be the highest rate or rates in effect

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on or before such date under any wage order covering such employee, increased by $0.20.

"(C) During the second year from the effective date

of the Fair Labor Standards Amendments of 1973, and in each year thereafter, the highest rate or rates (including any increase prescribed by this paragraph) in effect

on or before such date, under any wage order covering

such employee, increased by $0.20 in each such year.

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"(D) Whenever the rates prescribed by subparagraph (C) would otherwise equal or exceed the rates

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prescribed in section 6 (a), the provisions of such section shall apply thereafter.

"(3) (A) In the case of any such employee to whom 4 this subsection was made applicable by the Fair Labor Stand5 ards Amendments of 1973, the Secretary shall, as soon as 6 practicable after the date of enactment of such amendments, 7 appoint a special industry committee in accordance with sec8 tion 5. Such industry committee shall recommend a minimum 9 wage rate of $1.60, unless there is substantial documentary 10 evidence, including pertinent unabridged profit and loss state11 ments and balance sheets for a representative period of years, 12 in the record which establishes that the industry, or a pre13 dominant portion thereof, is unable to pay that wage. In no 14 event shall any industry committee recommend a minimum 15 wage rate less than the rate prescribed in paragraph 2(A) 16 of this subsection. Any rate recommended by the special in17 dustry committee within sixty days after the effective date of 18 the Fair Labor Standards Amendments of 1973 shall be 19 effective with respect to such employee upon the effective 20 date of the wage order issued pursuant to such recommenda21 tion, but not before sixty days after the effective date of the 22 Fair Labor Standards Amendments of 1973.

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"(B) Upon the issuance of the wage order required by 24 subparagraph (A) of this paragraph, the provisions of 25 paragraph (2) shall apply.

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