Legislative History of the Fair Labor Standards Amendments of 1974, Public Law 93-259

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 over $1.60.

For other employees presently covered by a wage
For nonagricultural employees covered
order, percentage increases, as follows:
before 1966 amendments, 25-percent
increased during 1st year and 12.5-
per percent increase during 2d year.
For nonagricultural employees covered by
601966 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).
Such increases may be reviewed by industry
committees appointed by the Secretary of
Provides for special industry committees to
touLabor.
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.

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

Present law

PROPOSED FAIR LABOR STANDARDS AMENDMENTS OF 1973, 93D CONGRESS-Continued

[Comparison of principal provisions of S.-(identical except as specifically noted to S. 1861 as passed by the Senate) with present law, H.R. 4757 and H.R. 2831]

No coverage if annual gross sales vol-
ume is below $250,000 (except for
specifically listed establishments in
"Enterprise" definition: laundering
cleaning, or repairing clothes or fabrics).
(d) Agricultural workers:

No coverage unless the employer used
Amore than 500 man-days of agricul-
yutural labor during peak quarter in the

past calendar year. Local seasonal
hand harvest laborers not counted for
purposes of man-day test and ex-
cluded from minimum wage.
Parents, spouse, child or other member
of employer's immediate family are
not covered employees in agriculture.

S.(identical except as specifically noted to
S. 1861, as passed (92d Cong.)) (Mr. Williams)

Coverage for all Federal, State, and local government employees, except persons serving in the armed services and certain persons not in the competitive service.ji, lišća rijet With regard to overtime, a special provision for a mutually agreed to 28-day work period is made for averaging overtime hours for State and local law enforcement (including security personnel in correctional institutions) and fire protection employees. Scales down the nonovertime work period during a 28-day work cycle from 192 hours to 160 hours over 4 years. Coverage for minimum wage only included for domestic service employees, except babysitters.

H.R. 4757 (Mr. Dent)

H.R. 2831 (Mr. Erlenborn)

Coverage for all Federal, State and local gov- No change from present law. ernment employees (such State and local government employees engaged in fire protection or law enforcement activities are exempt from overtime provisions).

V. EXEMPTIONS

Minimum wage and overtime exemption re-
pealed for: Motion picture theater em-
ployees; Shade grown tobacco employees en-
gaged in processing such tobacco; certain
telegraph agency employees; certain em-
ployees of retail-manufacturing establish-
ments.

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

Minimum wage and overtime exemption re-
pealed for employees of conglomerates.
Minimum wage and overtime exemption ex-
tended to resident house parents (husband
and wife) of orphans residing in private non-
profit educational institutions, if couple earns
at least $10,000 per year in salary from such
employment.

Overtime exemption repealed for: Agricultural,
processing employees, in stages to 40 hours
per week in 3d year-

for local transit employees in stages as
follows: 48 hours 1st year; 44 hours 2d
year; 40 hours thereafter (provides for
an exemption for voluntary work per-
formed by employees of a local transit
company in nonregular charter activities
which are covered by prior agreements);
for sugar processing employees;

for maids and custodial employees of hotels
and motels.

Modifies current exemption for nursing home
employees by requiring overtime pay for hours
in excess of 80 in a 2-week period.
Treats laundering and drycleaning establish-
ments as service establishments as they in-
volve the employment of outside salesmen or
commission employees.

Adds an overtime exemption for newly covered
State and local government employees en-
gaged in fire protection or law enforcement
activities.

1 S. 1861, as passed, provided for an exemption for resident employees in certain apartment buildings, and resident house parents in orphan homes.

Retains present exemptions and extends minimum wage and overtime exemptions to: Employees delivering shopping news including shopping guides, handbills, or other types of advertising material. Resident house parents (husband and wife) of orphans residing in private nonprofit educational institutions, if couple earns at least $10,000 per year in salary from such employment.

Retains present exemptions and extends partial overtime exemption to certain retail and service employees.

(a) Tips:

PROPOSED FAIR LABOR STANDARDS AMENDMENTS OF 1973, 93D CONGRESS-Continued

Value of the tips may be included in determining wages to meet the minimum rate up to 50 percent of the minimum rate.

VI. MISCELLANEOUS PROVISIONS

Tip credit to meet the minimum rate retained at No change from present law.
50 percent of the minimum rate. The em-
ployer must inform each of his tipped em-
ployees of the provisions of the law regard-
ing 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 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.

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Provides for a criminal penalty for employers No change from present law. who knowingly employs aliens in violation of

criminal laws.

Makes employers in violation of the Fair (e) Liquidated damages: Labor Standards Act liable to affected employees in an amount equal to unpaid minimum wages plus an additional equal amount in liquidated damages unless the suit involves issues not finally settled by the courts. The Secretary of Labor may bring suit for back pay upon written request of the employee.

(1) Canal Zone workers:

Allows the Secretary of Labor to bring suit to No change from present law. recover unpaid minimum wages or overtime compensation and an equal amount of liquidated damages without requiring written request of the employee and even though the suit might involve issues not finally settled by the courts.

Covered under the Fair Labor Standards Act.. No change from present law?

(8) Age discrimination in Government employment: No coverage.

Extends coverage of the Age Discrimination in Employment Act of 1967 to Federal, State, and local government employees. Gives the Federal Civil Service Commission enforcement power over discrimination for Federal employees.

(h) Public service employment agencies (no provisions No change from present laws. in present law).

1S. 1861, as passed, provided for a criminal penalty for employers who knowingly employ aliens in violation of immigration laws.

Prohibits public employment service agencies No change from present law. from placing an individual with an employer who would pay such individual less than the minimum wage rate applicable under the law.

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.

32-781 (Vol. 1) O 76 - 8

VII. EFFECTIVE DATE

60 days after date of enactment..

30 days after date of enactment.

1st day of 2d full month after date of enactment

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Legislative History of the Fair Labor Standards Amendments of 1974 ..., Volum 1