DEFINITIONS

SEC. 3. (a) Section 3 (b) of the Act is amended to read as follows:

"(b) 'Commerce' means trade, commerce, transportation, transmission, or communication among the several States or between any State and any place outside thereof."

(b) Section 3 (e) of the Act is amended to read as follows:

"(e) 'Employee' includes any individual employed by an employer in any State, and also includes any seaman employed on or in connection with an American vessel under a contract of service entered into in any State or during the performance of which the vessel touches at a port in any State; but does not include any seaman employed on or in connection with a vessel not an American vessel, if such seaman is employed on and in connection with such vessel when outside any State."

(c) Section 3 (m) of the Act is amended to read as follows:

"(m) 'Wage' paid to any employee, except any seaman or except employees of common carriers engaged in the preparation and service of food and beverages, includes the reasonable cost, as determined by the Administrator, to the employer of furnishing such employee with board, lodging, or other facilities, if such board, lodging, or other facilities are customarily furnished by such employer to his employees."

(d) Section 3 of the Act is further amended by adding at the end thereof the following:

"(n) American vessel' means any vessel documented or numbered under the laws of the United States; and includes any vessel which is neither documented nor numbered under the laws of the United States nor documented under the laws of any foreign country, if its crew is employed solely by one or more citizens or residents of any State or corporations organized under the laws of the United States or of any State.

"(o) ‘Activity affecting commerce' means any activity in commerce or necessary to commerce in competing with any activity in commerce or where the payment of wages at rates below those prescribed by this Act would burden or obstruct or tend to burden or obstruct commerce or the free flow of commerce."

INDUSTRY COMMITTEES

SEC. 4. (a) Section 5 (a) of the Act is amended to read as follows: "SEC. 5. (a) The Administrator shall as soon as practicable appoint an industry committee for each industry engaged in commerce or in the production of goods for commerce or in other activities affecting commerce.'

(b) The second sentence of section 5 (e) of the Act is amended to read as follows: "Notwithstanding any other provision of this Act, the Administrator may appoint a special industry committee to recommend the minimum rate or rates of wages to be paid under section 6 to employees in Puerto Rico or the Virgin Islands, or in Puerto Rico and the Virgin Islands, or the Administrator may appoint separate industry committees to recommend the minimum rate or rates of wages to be paid under section 6 to employees therein in particular industries."

MINIMUM WAGES

SEC. 5. (a) So much of section 6 (a) of the Act as precedes paragraph (5) thereof is amended to read as follows:

"SEC. 6. (a) Every employer shall pay to each of his employees who is engaged in commerce or in the production of goods for commerce, and every employer who is engaged in any activity affecting commerce shall pay to each of his employees employed in or about or in connection with any enterprise where he is so engaged, wages at the following rates

"(1) not less than 75 cents an hour or the rate (not in excess of $1 an hour and not less than 75 cents an hour) prescribed in the applicable order of the Administrator issued under section 8."

(b) Section 6 of the Act is amended by striking out subsection (b) thereof. (c) Section 6 (c) of the Act is amended to read as follows:

"(c) The provisions of paragraph (1) of subsection (a) of this section shall be superseded in the case of any employee in Puerto Rico or the Virgin Islands only for so long as and insofar as such employee is covered by a wage order issued by the Administrator pursuant to the recommendations of a special industry committee appointed pursuant to section 5 (e)."

MAXIMUM HOURS

SEC. 6. Section 7 of the Act is amended to read as follows: "SEC. 7. (a) Except as otherwise provided in this section, no employer shall employ any of his employees who is engaged in commerce or in the production of goods for commerce, and no employer who is engaged in any activity affecting commerce shall employ any of his employees employed in or about or in connection with any enterprise where he is so engaged, for a workweek longer than forty hours, unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed.

(b) No employer shall be deemed to have violated subsection (a) by employing any employee for a workweek in excess of that specified in such subsection without paying the compensation for overtime employment prescribed therein if such employee is so employed

"(1) in pursuance of an agreement, made as a result of collective bargaining by representatives of employees certified as bona fide by the National Labor Relations Board, which provides that no employee shall be employed more than one thousand hours during any period of twenty-six consecutive weeks, or

"(2) on an annual basis in pursuance of an agreement with his employer, made as a result of collective bargaining by representatives of employees certified as bona fide by the National Labor Relations Board, which provides that the employee shall not be employed more than two thousand and eighty hours during any period of fifty-two consecutive weeks;

and if such employee receives compensation for employment in excess of twelve hours in any workday, or for employment in excess of fifty-six hours in any workweek, as the case may be, at a rate not less than one and one-half times the regular rate at which he is employed."

WAGE ORDERS

SEC. 7. Section 8 of the Act is amended to read as follows:

"SEC. 8 (a) With a view to carrying out the policy of this Act by reaching, as rapidly as is economically feasible without substantially curtailing employment, the objective of a universal minimum wage of $1 an hour in each industry engaged in commerce or in the production of goods for commerce or in any other activity affecting commerce, the Administrator shall from time to time convene the industry committee for each such industry, and the industry committee shall from time to time recommend the minimum rate or rates of wages to be paid under section 6 by employers engaged in commerce or in the production of goods for commerce or in any other activity affecting commerce in such industry or classifications thereof.

"(b) Upon the convening of an industry committee, the Administrator shall refer to it the question of the minimum wage rate or rates to be fixed for such industry. The industry committee shall investigate conditions in the industry and the committee, or any authorized subcommittee thereof, may hear such witnesses and receive such evidence as may be necessary or appropriate to enable the committee to perform its duties and functions under this Act. The committee shall recommend to the Administrator the highest minimum wage rates for the industry which it determines, having due regard to economic and competitive conditions, will not substantially curtail employment in the industry. "(c) The industry committee for any industry shall recommend such reasonable classifications within any industry as it determines to be necessary for the purpose of fixing for each classification within such industry the highest minimum wage rate applicable under Section 6 which (1) will not substantially curtail employment in such classification and (2) will not give a competitive advantage to any group in the industry, and shall recommend for each classification in the industry the highest minimum wage rate which the committee determines will not substantially curtail employment in such classification. In determining whether such classifications should be made in any industry, in making such classifications, and in determining the minimum wage rates for such classifications, no classification shall be made, and no minimum wage rate shall be fixed, solely on a regional basis, but the industry committee and the Administrator shall consider among other relevant factors the following:

"(1) competitive conditions as affected by transportation, living, and production costs;

"(2) the wages established for work of like or comparable character by collective labor agreements negotiated between employers and employees by representatives of their own choosing; and

"(3) the wages paid for work of like or comparable character by employers who voluntarily maintain minimum-wage standards in the industry. No classification shall be made under this section on the basis of age or sex. "(d) The industry committee shall file with the Administrator a report containing its recommendations with respect to the matters referred to it. Upon the filing of such report, the Administrator, after due notice to interested persons, and giving them an opportunity to be heard, shall by order approve and carry into effect the recommendations contained in such report, if he finds that the recommendations are made in accordance with law, are supported by the evidence adduced at the hearing, and, taking into consideration the same factors as are required to be considered by the industry committee, will carry out the purposes of this section; otherwise he shall disapprove such recommendations. If the Administrator disapproves such recommendations, he shall again refer the matter to such committee, or to another industry committee for such industry (which he may appoint for such purpose), for further consideration and recommendations.

"(e) Orders issued under this section shall define the industries and classifications therein to which they are to apply, and shall contain such terms and conditions as the Administrator finds necessary to carry out the purposes of such orders, to prevent the circumvention or evasion thereof, and to safeguard the minimum wage rates established therein. No such order shall take effect until after due notice is given of the issuance thereof by publication in the Federal Register and by such other means as the Administrator deems reasonably calculated to give to interested persons general notice of such issuance. "(f) Due notice of any hearing provided for in this section shall be given by publication in the Federal Register and by such other means as the Administrator deems reasonably calculated to give general notice to interested persons."

CHILD LABOR PROVISIONS

SEC. 8. Section 12 of the Act is amended to read as follows:

"SEC. 12. (a) No producer, manufacturer, or dealer shall ship or deliver for shipment in commerce any goods produced in an establishment situated in the United States in or about which within thirty days prior to the removal of such goods therefrom any oppressive child labor has been employed: Provided, That a prosecution and conviction of a defendant for the shipment or delivery for shipment of any goods under the conditions herein prohibited shall be a bar to any further prosecution against the same defendant for shipments or deliveries for shipment of any such goods before the beginning of said prosecution.

"(b) No employer engaged in commerce or in the production of goods for commerce shall employ any oppressive child labor in or about any establishment where he is so engaged.

"(c) The Secretary of Labor, or any of his authorized representatives, shall make all investigations and inspections under section 11 (a) with respect to the employment of minors, and, subject to the direction and control of the Attorney General, shall bring all actions under section 17 to enjoin any act or practice which is unlawful by reason of the existence of oppressive child labor, and shall administer all other provisions of this Act relating to oppressive child labor."

EXEMPTIONS

SEC. 9. Section 13 of the Act is amended to read as follows:

"SEC. 13. (a) The provisions of sections 6 and 7 shall not apply with respect to (1) any employee employed in a bona fide executive, administrative, or professional capacity, or in the capacity of outside salesman (as such terms are defined and delimited by regulations of the Administrator); or (2) any employee employed in any retail or service establishment by an employer having not more than three such establishments and having a total annual volume of sales or servicing of not more than $300,000; or (3) any employee of a carrier by air subject to the provisions of title II of the Railway Labor Act; or (4) any employee employed in the catching, taking, harvesting, cultivating, or farming of any kind of fish, shellfish, crustacea, sponges, seaweeds, or other aquatic forms of animal and vegetable life, including the going to and returning from work and loading and unloading when performed by any such employee; or (5) any

employee employed on a farm which employs eight or less employees: Provided, That in determining the number of employees employed on a farm, the term "employee" shall not include a child employed by a parent or a person standing in place of a parent employing his own child or a child in his custody; or (6) any employee to the extent that such employee is exempted by regulations or orders of the Administrator issued under section 14; or (7) any employee employed in connection with the publication of any weekly or semiweekly newspaper with a circulation of less than three thousand, the major part of which circulation is within the county where printed and published; or (8) any employee of a street, suburban, or interurban electric railway, or local trolley or motorbus carrier, not included in other exemptions contained in this section.

"(b) The provisions of section 7 shall not apply with respect to (1) any employee who during the greater part of any workweek is engaged in work which is covered by regulations affecting qualifications and maximum hours of service established heretofore or hereafter by the Interstate Commerce Commission pursuant to the provisions of Section 204 of the Motor Carriers Act, 1935; or (2) any employee of an employer subject to the provisions of Part I of the Interstate Commerce Act; or (3) any employee employed in agriculture.

"(e) The provisions of Section 12 relating to child labor shall not apply (1) with respect to any employee employed on a farm which employs 8 or less employees while not legally required to attend school, or (2) with respect to any child employed as an actor in motion pictures or theatrical productions: Provided, That in determining the number of employees employed on a farm, under clause (1) of this subsection, the term "employee" shall not include a child employed by a parent or a person standing in place of a parent employing his own child or a child in his custody."

EFFECTIVE DATE

SEC. 10. This Act shall take effect upon the expiration of one hundred and twenty days from the date of its enactment.

[S. 2386, 80th Cong., 2d sess.]

A BILL To provide for the amendment of the Fair Labor Standards Act of 1938, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

PART I

FINDINGS AND POLICY

SECTION 1. (a) The Congress hereby finds that the maintenance of a universal minimum wage of 40 cents an hour in industries engaged in commerce or in the production of goods for commerce is no longer sufficient to eliminate and prevent the existence in such industries of labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and general well-being of workers and is therefore inadequate to carry out the policy of Congress as declared in section 2 of the Fair Labor Standards Act of 1938.

The Congress further finds, hereby reaffirming and supplementing its findings in section 1 of the Portal to Portal Act of 1947, that numerous provisions of the Fair Labor Standards Act of 1938 and of the Walsh-Healey Act have been uncertain in their meaning and application and have been given, and unless clarified may continue to be given, interpretations inconsistent with long-established customs, practices, and contracts between employers and employees, which interpretations (1) have distorted the intent of Congress; (2) have given rise to wholly unexpected liabilities, immense in amount and retroactive in operation; and (3) have precipitated disputes and interfered with collective bargaining between employers and employees, thereby obstructing the free flow of goods in commerce.

(b) It is hereby declared to be the policy of Congress to remedy the aforesaid conditions (1) by raising the minimum wage in the manner hereinafter provided and (2) by amending the Fair Labor Standards Act of 1938 and the WalshHealey Act so as to define and delimit the provisions and application thereof.

PART II

AMENDMENT TO THE FAIR LABOR STANDARDS ACT

SEC. 2. The Fair Labor Standards Act of 1938, as amended, is amended to read as follows:

"That this Act may be cited as the 'Fair Labor Standards Act'.

"FINDING AND DECLARATION OF POLICY

"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 standard 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) constituten an unfair method of competition in commerce; (4) leads to labor disputes bur dening 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, to eliminate the conditions above referred to in such industries wherever they exist and to prevent their development without substantially curtailing employment or earning power.

"SEC. 3. As used in this Act

"DEFINITIONS

"(a) 'Person' means an individual, partnership, association, corporation, business trust, legal representative, or any organized group of persons.

"(b) Commerce' means trade, commerce, transportation, transmission, or communication among the several States or from any State to any place outside thereof.

"(c) 'State' means any State of the United States or the District of Columbia or any Territory or possession of the United States.

"(d) 'Employer' includes any person acting directly or indirectly in the interest of an employer in relation to an employee but shall not include the United States or any State or political subdivision of a State, or any labor organization (other than when acting as an employer), or anyone acting in the capacity of officer or agent of such labor organization.

"(e) 'Employee' includes any individual employed by an employer. "(f) ‘Agriculture' includes farming in all its branches and among other things includes the cultivation and tillage of the soil, dairying, the production, culti vation, growing, and harvesting of any agricultural or horticultural commodi ties (including commodities defined as agricultural commodities in section 1 (g) of the Agricultural Marketing Act, as amended), the raising of livestock bees, fur-bearing animals, or poultry, the performance of any service in con nection with the operation or maintenance of ditches, canals, waterways, of reservoirs used exclusively for carrying, storing, and supplying water for irri gation and incidental domestic purposes, and any practices (including any for estry or lumbering operations) performed by a farmer or on a farm as an in cident to or in conjunction with such farming operations, including prepara tion for market, delivery to storage or to market or to carriers for transporta tion to market.

"(g) 'Employ' includes to suffer or permit to work.

"(h) Industry' means a trade, business, industry, or branch thereof, O group of industries, in which individuals are gainfully employed.

"(i) 'Goods' means goods (including ships and marine equipment), ware products, commodities, merchandise, or articles or subjects of commerce of an character, or any part or ingredient thereof, but does not include goods afte their delivery into the actual physical possession of the ultimate consume thereof other than a producer, manufacturer, or processor thereof.

"(j) 'Produced' means produced, manufactured, mined, handled, or in an other manner worked on in any State; and for the purposes of this Act an en ployee shall be deemed to have been engaged in the production of goods, if suc employee (1) was employed in producing, manufacturing, mining, handlin transporting, or in any other manner working on such goods in any State; d