in October 1974; $2 an hour in October 1975; and $2.20 an hour in October 1976.

Mr. President, I will not burden the Senate at this time with a lengthy statement. Rather, I ask unanimous consent to have placed in the RECORD, at the conclusion of my remarks, a comparison of this bill with the current law, the bill passed by the Senate last year and the bills introduced by the chairman and ranking minority members of the General Labor Subcommittee on the House Committee on Education and Labor, and a section-by-section analysis of last year's Senate bill and this bill.

Mr. President, we all recognize that a minimum wage increase is long overdue. I hope that we can act on this measure with dispatch.

Senator JAVITS. I am extremely pleased to join Senator Williams in introducing a minimum wage bill, which basically follows the bill passed by the Senate last year. I regard this as a top priority bill for consideration by the Labor and Public Welfare Committee. The last minimum wage increase was enacted in 1966 and because of our failure to act until now, millions of American workers are being paid minimum wages which will not even provide a standard of living above the poverty level as defined by the United States Government. Just to keep up with increases in the cost of living since the last time the minimum wage was increased would require a present minimum wage of $2.20 per hour. Today's bill does not go so far, so fast; rather it provides an immediate raise to $2 and a further increase to $2.20 one year after the effective date.

I recognize that the Administration has called for a graduated increase in the minimum wage going up to $2.30 in 1976. This bill does not provide any further increases above $2.20, but this is certainly one issue which I know the Committee will explore very thoroughly. In addition, I hope the Committee will also give close attention to the possibility of expanding coverage of the act to include more employees of small retail and service enterprises. Last year, the bill reported out by the Committee would have phased in expanded coverage in this area, but that part of the bill was deleted on the Senate floor in in the desire to forge a broad consensus in the Senate on the bill. In this latter connection, I note that this bill does expand coverage to include state and local government employees and domestics.

I completely support such expanded coverage, but I also strongly believe that if we are to extend coverage to housewives employing domestics, we also should also extend it to business concerns, no matter small.

[There being no objection, the bill and material were ordered to be printed in the RECORD, as follows:]

SECTION-BY-SECTION ANALYSIS

SECTION 1. The popular name of this bill is the "Fair Labor Standards Amendments of 1973."

SEC. 2. Amends sections 3(d) and 3(c) of the Fair Labor Standards Act of 1938, as amended, to include under the definitions of "employer" and "employee" the United States and any State or political subdivision of a State. This will expand the coverage of the existing law to include agencies and activities of the United States (except the armed forces and certain employees not in the competitive service) and to similar employees in the States and their political subdivisions, not just hospitals, nursing homes, schools, and local transit as at present.

Amends section 3 (e) to also include under the definition of "employee" any individual employed in domestic service, except baby-sitters. This amendment would add to coverage an estimated 1.2 million workers. In addition, section 3(e) is amended to include local seasonal hand harvest laborers in the man-day count for agricultural coverage and to define those government employees covered by the bill.

Amends section 3(h) to add the words "or other activity" to the definition of the word "Industry."

Amends section 3 (m) to require that tipped employees retain all tips but not necessarily retained. At present, employers may include the value of tips actually received if employer is to utilize the 50 percent "tip-credit," in determining wages to be paid.

Amends section 3 (r) to include under "enterprise" the activities of the United States Government or any State or political subdivision thereof. This amendment will broaden the effect of retaining the current coverage for schools and hospitals, whether operated for profit or not for profit, and for regulated public and private local transit whether operated for profit or not for profit.

Amends sections 5 and 8 by bringing under the mainland minimum wage the employees of hotels, motels, and restaurants in Puerto Rico and the Virgin Islands. At present these workers are covered by wage rates determined by specially convened industry committees. Also covered at the mainland minimum are employees of governmental units in Puerto Rico and the Virgin Islands. Section 5 is also amended to prohibit an industry committee from reducing the wage rate below the statutory minimum.

SEC. 3. Amends section 6(a) to establish, for employees in activities covered by the Act prior to the 1966 amendments, an hourly minimum of $2.00 during the first year from the effective date of the 1973 amendments, and $2.20 thereafter. Amends section 6(a) to establish, for employees in agriculture, an hourly minimum of $1.60 during the first year from the effective date of the 1973 amendments, $1.80 during the second year from the effective date of the 1973 amendments, $2.00 during the third year from the effective date of the 1973 amendments, and $2.20 thereafter.

Amends section 6(a) to establish, for employees newly covered by the 1968 amendments and by the 1973 amendments, an hourly minimum of $1.80 during the first year from the effective date of the 1973 amendments, $2.00 during the second year from the effective date of the 1973 amendments, and $2.20 thereafter. Amends section 6(c) to require that covered employees in Puerto Rico and the Virgin Islands making less than $0.80 per hour under the most recent wage order be paid not less than $1.00 sixty days after enactment. Thereafter, their wages are increased by $0.20 per hour each year until parity is achieved with the mainland minimum. Employees over $0.80 per hour are raised $0.20 per hour each year after enactment until parity is achieved. Each year, special industry committees may increase the $0.20 per hour raise, but they may not lower it. Provision is also made for newly covered employees.

Amends section 6(e) to eliminate clauses excluding certain linen supply establishments from full coverage.

SEC. 4. Amends section 7 to eliminate certain provisions which provide partial overtime exemptions, particularly in agricultural processing industries, and makes other conforming amendments.

Amendments section 7 to provide for overtime averaging over a twenty-eight day period and a phase down from 48 to 40 hours per week without time-and-ahalf penalty for state and local government employees engaged in fire protection and law enforcement activities, including security personnel in correctional institutions.

Amends section 7 to exempt voluntary charter activities from hours worked in local transit for purposes of calculating overtime.

SEC. 5. Amends section 12 to permit the Secretary to require employers to obtain proof of age from any employee in order to carry out the objectives of the child labor provisions of the Act.

SEC. 6(a). Retains minimum wage and overtime exemptions permitted by section 13 (a) as follows:

13(a) (1) which describes any employee employed in a bona fide executive, administrative, or professional capacity, or in the capacity of outside salesman, but repeals the 40 percent tolerance for non-exempt activities;

13(a) (3) employees of seasonal amusement and recreational establishments; 13(a) (5) employees engaged in certain seafood harvesting and processing;

13(a) (6) employees in agriculture if employer uses 500 or fewer man days of hired labor during a peak quarter, but the provision exempting local seasonal hand harvest laborers regardless of the size of the farm on which they work is repealed;

13(a) (7) certain learners, apprentices, students, or handicapped workers; 13(a) (8) employees of small newspapers;

13(a) (10) switchboard employees of small telephone companies; and 13(a) (12) seamen on other than an American vessel.

Repeals minimum wage and overtime exemptions permitted by section 13(a) as follows:

13(a) (4) and (11) employees in certain retailing and service establishments; 13(a) (9) employees of motion picture theaters;

13(a) (14) agriculture employees engaged in growing and harvesting shadegrown tobacco.

Repeals section 13(a) (13) by removing minimum wage exemption for logging employees and retaining overtime exemption in new paragraph of section 13(b). Amends section 13(a)(2) by eliminating the special dollar volume establishment test for retail and service enterprises. This amendment has the effect of covering most chain store operations not now covered.

Sec. (b). 6 Retains overtime exemptions permitted by section 13(b) as follows: 13(b)(1) employees for whom the Secretary of Transportation may establish qualifications and maximum hours of service;

13(b)(2) employees of railroads;

13(b) (3) employees of air carriers,

13(b) (5) outside buyers of dairy products;

13(b) (6) seamen;

13(b) (9) certain employees of small radio or television stations;

13(b) (10) employees employed as salesman by motor vehicle dealers, or as salesmen, partsmen or mechanics by farm implement dealers;

13(b) (11) local drivers and drivers' helpers;

13(b) (12) certain agricultural employees;

13(b) (13) employees engaged in livestock auction operations;

13(b) (14) employees of country elevators;

13(b) (16) employees engaged in transportation of fruits and vegetables; and 13(b) (17) taxicab drivers.

Repeals overtime exemptions permitted by section 13 (b) as follows:

13(b) (2) employees of oil pipelines;

13(b) (4) employees of certain fish and aquatic forms of food processors; 13(b) (10) employees employed as partsmen or mechanics by motor vehicle dealers, or as salesmen, partsmen or mechanics by aircraft dealers;

13(b) (15) employees engaged in ginning of cotton, sugar beet or sugar cane processing, but the exemption for employees engaged in the processing of maple sap into syrup is retained;

Overtime standards for certain employees are improved in stages as follows: 13(b) (8) employees of nursing homes must be paid time-and-a-half after 48 hours first year (as in present law), after 46 hours second year, and after 44 hours thereafter;

13(b) (8) employees of hotels, motels, and restaurants must be paid time-and-ahalf after 48 hours first year, and after 46 hours thereafter.

Overtime standards for certain employees are repealed in stages as follows: 13(b) (7) employees of street, suburban or interurban electric railways, or local trolley or motor bus carriers must be paid time-and-a-half after 48 hours year, 44 hours second year, and the exemption is repealed thereafter (all hours exclusive of voluntary charter time);

13(b) (18) and 13(b) (19) employees of food service and catering establishments and bowling establishments must be paid time time-and-a-half after 48 hours first year, 44 hours second year, and the exemptions are repealed thereafter.

Amends section 13(b) to provide new overtime exemptions for the following employees:

Domestic service employees.

SEC. 6(c). Amends the provisions relating to child labor in agriculture to prohibit certain employment outside of schools hours, principally for all children under the age of twelve, except on a farm owned or operated by a parent.

SEC. 7. Amends section 14(b) to prevent unwarranted displacement of fulltime employees by student workers in retail and service establishments that are brought within the coverage of the FLSA by these amendments and to provide for student certificates for educational institutions.

SEC. 8. Amends section 16 (c) to allow the Secretary of Labor to bring suit to recover unpaid minimum wages of overtime compensation and an equal amount of liquidated damages without requiring a written request from an employee. In addition, this amendment would allow the Secretary to bring such actions even though the suit might involve issues of law that have not been finally settled by the courts.

SEC. 9. Amends section 16 to provide for a civil penalty of up to $1000 for violation of the provisions of section 12, relating to child labor.

SEC. 10. Amends section 18(b) to conform with new amendments.

SEC. 11. Provides conforming amendments to other laws.

SEC. 12. Amends age discrimination in Employment Act of 1967 to cover employees of Federal, State, and local governments.

SEC. 13. Provides that the Fair Labor Standards Amendments of 1972 become effective 60 days after date of enactment.

II. OVERTIME PAY REQUIREMENTS