132 pave the way for young people to begin productive careers in the working world. However, at the same time safeguards would have to be built into a proposal of this nature because some employers would undoubtedly use a differential minimum wage to replace some of their higher-wage adult employees with lower paid teenagers. To prevent abuse, both a limit on the number of workers paid less than the minimum wage as well as an explicit time period during which the entry rate could be paid are necessary, as suggested by the Administration. Some risk will still remain, but I personnally thing it should be accepted. The unemployment situation among teenagers has been deteriorating for years, and there appears to be no prospect of significant improvement in the foreseeable future, unless some positive action is taken now. I believe an entry wage for young people would be a step in the right direction. Sincerely yours, ANDREW F. BRIMMER. In any event, we think the need to do something to reduce youth unemployment is so imperative that the youth differential concept should be tested now. Its effects can be assessed when minimum wage legislation is again reviewed. Dr. James S. Coleman, author of the highly regarded study on school integration, views minimum wage laws as barriers to young people who are struggling to establish roles in the adult world. He said: "The new goal must be to integrate the young into functional --Psychology Today, February 1972. We agree. Youth unrest, which is so politically, socially, and economically expensive to this country, is largely attributable to the difficulty young people have in making the transition into the complex and competitive adult job world. Increased opportunities for work experience would help considerably in making this transition-particularly for youths with incomplete educations. For that reason, we view the youth differential proposed in our substitute as an extremely promising way of helping youths get across the minimum wage barrier. V. CONCLUSION The Committee bill in sum certainly provides a bleak outlook. for many of the nation's working poor as they face higher prices for food, products, and services; possible curtailment or abandonment of services including the closing of the neighborhood grocery and the loss of their only way to work-the bus; higher taxes due to increased burden of state and local governments; and most important, even face the potential loss of their jobs. PETER H. DOMINICK. 93D CONGRESS 1ST SESSION Calendar No. 283 H. R. 7935 [Report No, 93-301] IN THE SENATE OF THE UNITED STATES JUNE 7, 1973 Read twice and referred to the Committee on Labor and Public Welfare JULY 6, 1973 Reported, under authority of the order of the Senate of June 30, 1973, by Mr. WILLIAMS, without amendment AN ACT 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. 1 Be it enacted by the Senate and House of Representa · 2 tives of the United States of America in Congress assembled, 3 4 SHORT TITLE; REFERENCES TO ACT SECTION 1. (a) This Act may be cited as the "Fair 5 Labor Standards Amendments of 1973". 6 (b) Whenever in titles I, II, and III of this Act an 7 amendment or repeal is expressed in terms of an amendment 8 to, or repeal of, a section or other provision, the section or 9 other provision amended or repealed is a section or other 2 1 provision of the Fair Labor Standards Act of 1938 (29 7 COVERED BEFORE 1966 SEC. 101. Section 6 (a) (1) (29 U.S.C. 206 (a) (1)) is 8 amended to read as follows: 9 10 11 12 13 14 "(1) not less than $2 an hour during the period ending June 30, 1974, and not less than $2.20 an hour after June 30, 1974, except as otherwise provided in this section;". INCREASE IN MINIMUM WAGE RATE FOR NONAGRICUL TURAL EMPLOYEES COVERED IN 1966 AND 1973 15 SEC. 102. Section 6(b) (29 U.S.C. 206 (b)) is 16 amended (1) by striking out "Every employer" and insert17 ing in lieu thereof "(1) Except as provided in paragraph 18 (2), every employer", (2) by striking out "(other than an 19 employee to whom subsection (a) (5) applies)", (3) by in20 serting "or the Fair Labor Standards Amendments of 1973" 21 after "1966", and (4) by striking out paragraphs (1) 22 through (5) and inserting in lieu thereof the following: "(A) not less than $1.80 an hour during the period ending June 30, 1974, 8 9 10 11 11 12 13 3 "(B) not less than $2 an hour during the year beginning July 1, 1974, and "(C) not less than $2.20 an hour after June 30, 1975. "(2) This subsection does not apply to— "(A) any employee to whom subsection (a) (5) applies, "(B) any employee who was brought within the purview of this section by the amendments to section 18 made by the Fair Labor Standards Amendments of 1966, and "(C) any Federal employee employed in con nection with the operation of a hospital, institution, or 14 school described in section 4 (r) (1). 15 Subsection (a) (1) applies to the employees described in 16 subparagraphs (B) and (C)." 17 18 INCREASE IN MINIMUM WAGE RATE FOR AGRICULTURAL EMPLOYEES 19 SEC. 103. Section 6 (a) (5) (29 U.S.C. 206 (a) (5)) is 20 amended to read as follows: 21 "(5) if such employee is employed in agriculture, not less than— "(A) $1.60 an hour during the period ending June 30, 1974; 4 "(B) $1.80 an hour during the year beginning July 1, 1974; "(C) $2 an hour during the year beginning July 1, 1975, and "(D) $2.20 an hour after June 30, 1976." 6 GOVERNMENT, HOTEL, MOTEL, RESTAURANT, FOOD SERVICE, 7 AND CONGLOMERATE EMPLOYEES IN PUERTO RICO AND 8 THE VIRGIN ISLANDS 9 SEC. 104. Section 5 (29 U.S.C. 205) is amended by 10 adding at the end thereof the following new subsection: 11 "(e) The provisions of this section, section 6 (c), and 12 section 8 shall not apply with respect to the minimum wage 13 rate of any employee employed in Puerto Rico or the Virgin 14 Islands (1) by the United States or by the government of 15 the Virgin Islands, (2) by an establishment which is a 16 hotel, motel, or restaurant, (3) by any other retail or serv17 ice establishment which employs such employee primarily in 18 connection with the preparation or offering of food or bev19 erages for human consumption, either on the premises, or 20 by such services as catering, banquet, box lunch, or curb or 21 counter service, to the public, to employees, or to members or guests of members of clubs, or (4) by an establishment 22 23 2 2 2 3 described in section 13 (g). The minimum wage rate of such 24 an employee shall be determined under this Act in the same 25 manner as the minimum wage rate for employees employed in |