(2) was employed in any State in any process or occupation necessary to the production thereof: Provided, That no employee shall be covered by the provisions of section 6 or section 7 if fewer than five and less than 20 per centum of the employees in the establishment in which he is employed are engaged in commerce or in the production of goods for commerce in occupations not exempted under the provisions of section 13 (a): Provided further, That no employee shall be covered by the provisions of section 6 or section 7 or section 12 solely by reason of his employment in a process or occupation necessary to the production of goods for commerce if his employer (A) is not directly engaged in the production of goods for commerce and (B) less than 50 per centum of the business of such employer is necessary to the production of goods for commerce. An employer shall be deemed to be directly engaged in the production of goods for commerce if, but only if, his employees are employed in producing, manufacturing, mining, handling, transporting, or in any other manner working on such goods in any State. "(k) 'Sale' or 'sell' includes any sale, exchange, contract to sell, consignment for sale, shipment for sale, or other disposition. "(1) 'Oppressive child labor' means a condition of employment under which (1) any employee under the age of sixteen years is employed by an employer (other than a parent or a person standing in place of a parent employing his own child or a child in his custody under the age of sixteen years in an occupation other than manufacturing or mining) in any occupation, or (2) any employee between the ages of sixteen and eighteen years is employed by an employer in any occupation which the Secretary of Labor shall find and by order declare to be particularly hazardous for the employment of children between such ages or detrimental to their health or well-being; but oppressive child labor shall not be deemed to exist by virtue of the employment in any occupation of any person with respect to whom the employer shall have on file an unexpired certificate issued and held pursuant to regulations of the Secretary of Labor certifying that such person is above the oppressive child-labor age. The Secretary of Labor shall provide by regulation or by order that the employment of employees between the ages of fourteen and sixteen years in occupations other than manufacturing and mining shall not be deemed to constitute oppressive child labor if and to the extent that the Secretary of Labor determines that such employment is confined to periods which will not interfere with their schooling and to conditions which will not interfere with their health and well-being. "(m) 'Wage' paid to an employee 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. (n) Regular rate of pay'.-(1) Except as provided in paragraphs (2), (3), and (4) of this subsection, the 'regular rate of pay' at which an employee is employed shall be computed by dividing his normal, straight-time compensation for the workweek in question by the total number of hours worked by such employee during such workweek. In making the computation "(A) there shall be included in normal, straight-time compensation"(1) basic wage payments, whether at an hourly rate, day rate, piece rate, or salary, “(2) production bonuses and other incentive payments determined by reference to the production or efficiency of such employee (or of any group of which he is a member) and without reference to the profits of the enterprise. "(3) attendance bonuses, "(4) shift differentials, “(5) premiums for hazardous, arduous, or dirty work, and "(6) such other bonuses not specifically excluded by this subsection as are paid quarterly or more often pursuant to any contract or established practice of his employer; "(B) there shall be excluded from normal, straight-time compensation and shall be credited to overtime compensation for the purposes of section 7— "(1) overtime premiums paid for work performed in excess of the normal weekday or workweek scheduled in good faith by established practice or a collective-bargaining agreement, and "(2) overtime premiums paid for work performed outside of the normal workday or workweek scheduled in good faith by established practice or a collective-bargaining agreement, including premium payments for work performed on Saturdays, Sundays, and holidays; "(C) there shall be excluded from normal, straight-time compensation but shall not be credited to overtime compensation "(1) premium payments for work performed during vacations, "(3) employer contributions and employee benefits paid under a bona fide retirement, annuity, or pension plan, medical or hospitalization plan, or death-benefit plan. "(4) contributions made by the employer and payments made to the employee under any bona fide profit sharing plan or trust which is approved by the Administrator under appropriate regulations or by the terms of which the employer is required to distribute to, or irrevocably set aside for the benefit of, his employees a predetermined percentage of his profits, and "(5) bonuses paid less often than quarterly the amount of which is not measured exclusively by the production or efficiency of such employee (or of any group of which he is a member). "(2) In the case of any employee employed at a fixed weekly, semimonthly, or monthly salary for both straight time and overtime hours under a contract of employment which expressly provides a regular hourly rate of pay, the rate so specified shall be deemed to be 'the regular rate of pay' at which he is employed if, but only if, it is not substantially less than his average straight time hourly earnings, after due allowance for overtime, over a representative period of time. "(3) In computing the 'regular rate of pay' of an employee employed under a bona fiide collective bargaining agreement— "(A) there shall be included in normal, straight time compensation"(1) wage basic payments, whether at an hourly rate, day rate, piece rate, or salary; "(2) production bonuses and other incentive payments distributed not less frequently than monthly, the amount of which is determined by reference to the production or efficiency of such employee (or of any group of which he is a member) and without reference to the profits of the enterprise; and "(3) such other payments of the character described in section 3 (n) (1) (A) (if the same were applicable) as are not excluded by designation as 'overtime' payments in the provisions of such agreement or by an express provision thereof; "(B) there shall be excluded from normal, straight-time compensation and shall be credited to overtime compensation- "(1) payments which are creditable under the provisions of section 3 (n) (1) (B), "(2) payments designated as 'overtime' payments or otherwise made creditable to overtime by the provisions of such agreement, and (C) there shall be excluded from normal, straight-time compensation but shall not be credited to overtime compensation such payments of the character described in section 3 (n) (1) (C) as are not designated as 'overtime' payments nor otherwise made creditable to overtime by the provisions of such agreement. "(4) In the case of an employee who performs during a single workweek two or more kinds of work for which different rates of pay have been established, his employer may elect to treat either (A) the average hourly rate computed in the manner prescribed by section 3 (n) (1) or (B) the rate or rates of pay applicable to the work performed during the overtime hours (including the ap propriate part of all payments of the character described in section 3 (n) (1) (A)) as 'the regular rate of pay' at which such employee is employed. "(o) Salary basis.-An employee shall be deemed to be employed ‘on a salary basis' if all or a part of the compensation of such employee is made up of weekly, semi-monthly, monthly, or annual payments predetermined in amount and not subject to reduction because of variations in the number of hours worked: Provided, That deductions may be made for absences in violation of, or in excess of the time allowed under, a reasonable annual or sick-leave plan applicable to the salaried employees of his employer. "ADMINISTRATOR "SEC. 4. (a) The Wage and Hour Division in the Department of Labor created by the Fair Labor Standards Act of 1938 is hereby continued under the direction of the Administrator of the Wage and Hour Division (hereinafter referred to as the 'Administrator'). In the event of a vacancy in the office of Administrator, a successor shall be appointed by the President, by and with the advice and consent of the Senate. The Administrator shall receive a salary of $10,000 a year. "(b) The Administrator may, subject to the civil-service laws, appoint such employees, including attorneys, as he deems necessary to carry out his functions and duties under this Act and shall fix their compensation in accordance with the Classification Act of 1923, as amended. The Administrator may establish and utilize such regional, local, or other agencies, and utilize such voluntary and uncompensated services, as may from time to time be needed. All attorneys engaged in advising the Administrator concerning the interpretation of, or the issuance of regulations or orders under, any provision of this Act, except with respect to the employment of children, shall be subject to the exclusive direction and control of the Administrator. Attorneys appointed by the Administrator under this section may appear for and represent the Administrator in any litigation, but all such litigation shall be subject to the direction and control of the Attorney General. In the appointment, selection, classification, and promotion of officers and employees of the Administrator, no political test or qualification shall be permitted or given consideration, but all such appointments and promotions shall be given and made on the basis of merit and efficiency. "(c) The principal office of the Administrator shall be in the District of Columbia, but he or his duly authorized representative may exercise any or all his powers in any place. "(d) The Administrator shall submit annually in January a report to the Congress covering his activities for the preceding year and including such information, data, and recommendations for further legislation in connection with the matters covered by this Act as he may find advisable. "INDUSTRY COMMITTEES "SEC. 5. (a) The Administrator shall forthwith appoint an industry committee for each industry engaged in commerce or in the production of goods for commerce, and shall fill vacancies in each industry committee as they occur. The Administrator may alter or amend the definition of an industry at any time prior to the issuance of the wage order in which it is to be embodied and may thereupon appoint such additional members of the industry committee as may be necessary to make the committee representative of the industry: Provided, That such amended definition shall not affect the scope or application of any wage order theretofore issued and outstanding. "(b) An industry committee shall be appointed by the Administrator without regard to any other provisions of law regarding the appointment and compensation of employees of the United States. It shall include a number of disinterested persons representing the public, one of whom the Administrator shall designate as chairman, a like number of persons representing employees in the industry, and a like number representing employers in the industry. In the appointment of the persons representing each group, the Administrator shall give due regard to the geographical regions in which the industry is carried on. "(e) Two-thirds of the members of an industry committee shall constitute a quorum, and the decision of the committees shall require a vote of not less than a majority of all its members. Members of an industry committee shall receive as compensation for their services a reasonable per diem, which the Administrator shall by rules and regulations prescribe, for each day actually spent in the work of the committee, and shall in addition be reimbursed for their necessary traveling and other expenses. The Administrator shall furnish the committee with adequate legal, stenographic, clerical, and other assistance, and shall by rules and regulations prescribe the procedure to be followed by the Committee. "(d) The Administrator shall submit to an industry committee from time to time such data as he may have available on the matters referred to it, and shall cause to be brought before it in connection with such matters any witnesses whom he deems material. An industry committee may summon other witness or call upon the Administrator to furnish additional information to aid it in its deliberations. "(e) No industry committee appointed under subsection (a) of this section shall have any power to recommend the minimum rate or rates of wages to be paid under section 6 to any employees in Puerto Rico or in the Virgin Islands. Notwithstanding any other provisions 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 (b) to all employees in Puerto Rico or the Virgin Islands, or in Puerto Rico and the Virgin Islands, engaged in commerce or in the production of goods for commerce, or the Administrator may appoint separate industry committees to recommend the minimum rate or rates of wages to be paid under section 6 (d) to employees therein engaged in commerce or in the production of goods for commerce in particular industries. An industry committee appointed under this subsection shall be composed of residents of such island or islands where the employees with respect to whom such committee was appointed are employed and residents of the United States outside of Puerto Rico and the Virgin Islands. In determining the minimum rate or rates of wages to be paid, and in determining classifications, such industry committees and the Administrator shall proceed in the manner provided in section 8 but shall not be limited to fixing a minimum wage rate or rates in excess of 50 cents an hour. No such industry committee shall recommend, nor shall the Administrator approve, a minimum wage rate which will give any industry in Puerto Rico or in the Virgin Islands a competitive advantage over any industry in the United States outside of Puerto Rico and the Virgin Islands. "MINIMUM WAGES "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 wages at not less than the rate prescribed (not less than 50 nor more than 70 cents an hour) in the applicable order of the Administrator issued under section 8 or, in the event that an applicable order shall not have been issued, not less than 60 cents an hour: Provided, That the provisions of this subsection shall not apply to any employee employed in Puerto Rico or the Virgin Islands. "(b) Every employer shall pay to each of his employees who is engaged in commerce or in the production of goods for commerce in Puerto Rico or the Virgin Islands wages at the following rates "(1) not less than the rate (not in excess of 70 cents an hour) prescribed in the applicable order of the Administrator heretofore or hereafter issued by the Administratr pursuant to the recommendations of a special industry committee appointed pursuant to section 5 (e) ; or "(2) if such employee is a home worker, not less than the minimum piece rate prescribed by regulation or order; or, if no such minimum piece rate is in effect, any piece rate adopted by such employer which shall yield, to the proportion or class of employees prescribed by regulation or order, not less than the applicable minimum hourly wage rate. Such minimum piece rates or employer piece rates shall be commensurate with, and shall be paid in lieu of, the minimum hourly wage rate applicable under the provisions of this section. The Administrator, or his authorized representative, shall have power to make such regulations or orders as are necessary or appropriate to carry out any of the provisions of this paragraph, including the power, without limiting the generality of the foregoing, to define any operation or occupation which is performed by such home-work employees in Puerto Rico or the Virgin Islands; to establish minimum piece rates for any operation or occupation so defined; to prescribe the method and procedure for ascertaining and promulgating minimum piece rates; to prescribe standards for employer piece rates, including the proportion or class of employees who shall receive not less than the minimum hourly wage rate; to define the term 'home worker'; and to prescribe the conditions under which employers, agents, contractors, and subcontractors shall cause goods to be produced by home workers. "MAXIMUM HOURS "SEC. 7. (a) No employer shall, except as otherwise provided in this section, employ any of his employees who is engaged in commerce or in the production of goods for commerce for a workweek longer than forty hours, unless such employee receives compensation for his employment in excess of forty hours at a rate not less than one and one-half times the regular rate of pay 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 forty hours without paying compensation for such overtime employment at the rate prescribed in subsection (a) 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, and 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 of pay at which he is employed; "(2) for a period or periods of not more than fourteen workweeks in the aggregate in any calendar year in an industry found by the Administrator to be of a seasonal nature, and 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 of pay at which he is employed; or "(3) 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 no employee shall be employed more than two thousand one hundred and forty-four hours in any period of fifty-two consecutive weeks, and receives compensation for employment in excess of twelve hours in any workday or fifty-six hours in any workweek or two thousand and eighty hours in any period of fifty-two consecutive weeks, as the case may be, at not less than one and one-half times the regular rate at which he is employed. An employee shall be deemed to be employed on an annual basis within the meaning of this subsection if "(A) he is guaranteed by such agreement a minimum annual wage (whether payable weekly, monthly, or otherwise) equivalent to compensation for fifty-two workweeks of forty hours each (or of such shorter duration as the Administrator certifies is customary in the industry) at the rate of pay applicable under such agreement to the job at which he is employed; or "(B) he is guaranteed by such agreement a minimum annual wage (whether payable weekly, monthly, or otherwise) equivalent to compensation for not less than forty-four workweeks of forty hours each (or of such shorter duration as the Administrator certifies is customary in the industry) and the Administrator certifies prior to the effective date of such agreement that it will achieve to the fullest extent practicable in the industry the purposes of a guaranteed annual wage. In the case of an employer engaged in the first processing of milk, whey, skimmed milk, or cream into dairy products, or in the ginning and compressing of cotton, or in the processing of cottonseed, or in the processing of sugar beets, sugar beet molasses, sugarcane, or maple sap, into sugar (but not refined sugar) or into sirup, the provisions of subsection (a) shall not apply to any of his employees in any place of employment where he is so engaged; and in the case of an employer engaged in the first processing of, or in canning or packing, perishable or seasonal fresh fruits or vegetables, or in the first processing, within the area of production (as defined by the Administrator), of any agricultural or horticultural commodity during seasonal operations, or in handling, slaughtering, or dressing poultry or livestock, the provisions of subsection (a), during a period or periods of not more than fourteen workweeks in the aggregate in any calendar year, shall not apply to any of his employees in any place of employment where he is so engaged. WAGE ORDERS "SEC. 8. (a) Whenever the Administrator finds and declares, or one-third of the members of the industry committee file with the Administrator a petition alleging, that there is reason to believe that conditions exist which require a change, pursuant to subsection (e) or subsection (f) of this section, in the minimum wage rate in any industry engaged in commerce or in the production of goods for commerce, then the Administrator shall forthwith convene the industry committee for the industry. No petition to raise or lower a wage rate in any industry or classification therein shall be filed by the members of the industry committee less than six months after such rate has been established by an order of the Administrator issued under this section. "(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 committee, or any authorized subcommittee thereof, may hear 75017-48-pt. 1-2 |