28 ping, sorting, grading, sizing, packing, or se, niig prior to packing, of perishable cigar leaf 1 Aneu để type 41, 42, 43, 44, 45, 46, 51, 52, 5, 4. or 62 (as such types are defined by the Serary of Agriculture); and "(2) receives for "(A) such employment by rus enige which is in excess of ten hours in any voidy 2:1 "(B) such employment by SUI which is in excess of forty-eigir hour I am ve 13 times the regular rate at win is my pre 14 An employer who receives 1 eng 15 section shall not be eligible for a 16 this section." 29 1 2 3 4 5 6 7 8 to care for and educate their children or children under their guardianship (as the case may be), if such em ployee and his spouse (A) are employed to serve as the parents of such children who reside in facilities of the institution, (B) reside in such facilities and reccive, without cost, board and lodging from such institution, and (C) are together compensated, on a cash basis, at an annual rate of not less than $10,000." 9 TITLE III-CONFORMING AMENDMENTS; EFFEC 10 11 12 TIVE DATE; AND REGULATIONS CONFORMING AMENDMENTS SEC. 301. (a) Section 6(e) is amended to read as 13 follows: 14 15 "(e) Notwithstanding the provisions of section 13 of this Act (except subsections (a) (1) and (f) thereof), 16 every employer providing any contract services under a 17 contract with the United States or any subcontract there18 under shall pay to each of his employees whose rate of pay 19 is not governed by the Service Contract Act of 1965 (41 20 U.S.C. 351-357) or to whom subsection (a) (1) of this 21 section is not applicable, wages at a rate not less than the rate provided for in such subsection." 22 23 (b) Section 8 (29 U.S.C. 208) is amended (1) by 24 striking out "the minimum wage prescribed in paragraph 25 (1) of section 6 (a) in each such industry" in the first 30 1 sentence of subsection (a) and inserting in lieu thereof "the 2 minimum wage rate which would apply in each such indus 3 try under paragraph (1) or (5) of section 6 (a) but for 4 section 6(e)", (2) by striking out "the minimum wage rate prescribed in paragraph (1) of section 6(a)" in the 6 last sentence of subsection (a) and inserting in lieu thereof 7 "the otherwise applicable minimum wage rate in effect under 8 paragraph (1) or (5) of section 6(a)", and (3) by strik 9 ing out "prescribed in paragraph (1) of section 6(a)" in 10 subsection (c) and inserting in lieu thereof "in effect under 11 paragraph (1) or (5) of section 6 (a) (as the case may 12 be)". 13 14 EFFECTIVE DATE AND REGULATIONS SEC. 302. (a) Except as provided in sections 105 (a), 202, and 204, the effective date of this Act and the amend16 ments made by titles I, II, and II of this Act is (1) the first day of the second full month which 17 18 begins after the date of its enactment, or 19 (2) August 1, 1973, 20 whichever occurs first. 21 177 (b) Notwithstanding subsection (a), on and after the 22 date of the enactment of this Act the Secretary of Labor is 23 authorized to prescribe necessary rules, regulations, and 24 orders with regard to the amendments made by this Act. MAY 29, 1973.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. PERKINS, from the Committee on Education and Labor, REPORT together with MINORITY, SUPPORTING, SEPARATE MINORITY, and INDIVIDUAL VIEWS [To accompany H.R. 7935] The Committee on Education and Labor, to whom 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, report favorably thereon and recommend that the bill do pass. INTRODUCTORY STATEMENT The Fair Labor Standards Act of 1938 was enacted on June 25, 1938. The basic policy of the Act is contained in its second section: SEC. 2. (a) The Congress hereby finds that the existence, in industries engaged in commerce or in the production of goods for commerce, of labor conditions detrimental to the maintenance of the minimum standards of living necessary for health, efficiency, and general well-being of workers (1) causes commerce and the channels and instrumentalities of commerce to be used to spread and perpetuate such labor conditions among the workers of the several States; (2) burdens commerce and the free flow of goods in commerce; (3) constitutes an unfair method of competition in commerce; (4) leads to labor disputes burdening and obstructing commerce and the free flow of goods in commerce; and (5) interferes with the orderly and fair marketing of goods in commerce. (b) It is hereby declared to be the policy of this Act, through the exercise by Congress of its power to regulate. commerce among the several States and with foreign nations, to correct and as rapidly as practicable to eliminate the condi 2 tions above referred to in such industries without substan- PURPOSE OF THE LEGISLATION The bill seeks to implement the policy of the Act by (1) providing an increase in the minimum wage rate, and (2) extending the benefits and protection of the Act to workers engaged in commerce or in the production of goods for commerce, or employed in enterprises engaged in commerce or in the production of goods for commerce. The bill provides that the minimum wage rate for nonagricultural employees covered under the minimum wage provisions of the Act prior to the effective date of the 1966 amendments to the Act, and for Federal employees covered by the 1966 amendments, will be $2.00 an hour beginning on the first day of the second full month after the date of enactment, or August 1, 1973, whichever occurs first, and $2.20 an hour beginning July 1, 1974. The proposed minimum wage rate for nonagricultural employees covered under the minimum wage provisions of the Act by the 1966 and 1973 amendments will be $1.80 an hour beginning the first day of the second full month after the date of enactment, or August 1, 1973, whichever occurs first, $2.00 an hour beginning July 1, 1974, and $2.20 an hour beginning July 1, 1975. For agricultural employees covered under the minimum wage provisions of the Act, the minimum wage rate will be $1.60 an hour beginning the first day of the second full month after the date of enactment, or August 1, 1973, whichever occurs first, $1.80 an hour beginning July 1, 1974, $2.00 an hour beginning July 1, 1975, and $2.20 an hour beginning July 1, 1976. The minimum wage rates for hotel, motel, restaurant, food service, conglomerate, and certain public employees in Puerto Rico and the Virgin Islands, will be in accordance with those applicable to such employees in the United States. Other employees in Puerto Rico and the Virgin Islands presently covered by wage orders would be entitled to percentage increases in the wage orders generally based upon increases in the applicable U.S. minimum wage rate. The wage increases provided by the bill were attuned to considerations of correcting and as rapidly as practicable eliminating labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and general well-being of workers without substantially curtailing employment or earning power. It is firmly believed that these gradual and belated increases, approximately equivalent to productivity and cost-of-living increases in recent years, can be absorbed by the national economy as easily as all previous increases in the minimum wage rate. Title II of the bill extends the minimum wage and overtime coverage of the Act to Federal, State and local government employees (the overtime exemption is maintained for Federal employees and State and local policemen and firemen), domestic service employees, and conglomerate employees. Overtime coverage is extended to agricultural processing employees, transit system employees, nursing home employees (a limited exemption is maintained), and maids and custodial employees in hotels and motels. |