7

1 graphs (2), (3), and (4) and inserting in lieu thereof the

2 following:

3

"(2) In the case of any such employee who is covered

4 by such a wage order to whom the rate or rates prescribed

5 by subsection (a) or (b) would otherwise apply the fol

6

7.

lowing rates shall apply:

"(A) During the first year from the effective date of

8 the Fair Labor Standards Amendments of 1973, for any employee whose highest rate is less than $0.80 an hour, such rate shall not be less than $1.00 an hour.

9

10%

11

12

13

14

15

16

17

18

19

20

21

22

23

"(B) During the first year from the effective date of the Fair Labor Standards Amendments of 1973, for any employee whose highest rate is $0.80 an hour or more, such rate shall be the highest rate or rates in effect on or before such date under any wage order covering such employee, increased by $0.20.

"(C) During the second year from the effective date of the Fair Labor Standards Amendments of 1973, and in each year thereafter, the highest rate or rates (including any increase prescribed by this paragraph) in effect

on or before such date, under any wage order covering

such employee, increased by $0.20 in each such year.

3

"(D) Whenever the rates prescribed by subpara

24 graph (C) would otherwise equal or exceed the rates

1

2

3

8

prescribed in section 6 (a), the provisions of such section

shall apply thereafter.

"(3) (A) In the case of any such employee to whom 4 this subsection was made applicable by the Fair Labor Stand5 ards Amendments of 1973, the Secretary shall, as soon as 6 practicable after the date of enactment of such amendments, 7 appoint a special industry committee in accordance with sec8 tion 5. Such industry committee shall recommend a minimum 9 wage rate of $1.60, unless there is substantial documentary 10 evidence, including pertinent unabridged profit and loss state11 ments and balance sheets for a representative period of years, 12 in the record which establishes that the industry, or a pre13 dominant portion thereof, is unable to pay that wage. In no 14 event shall any industry committee recommend a minimum 15 wage rate less than the rate prescribed in paragraph 2(A) 16 of this subsection. Any rate recommended by the special in17 dustry committee within sixty days after the effective date of 18 the Fair Labor Standards Amendments of 1973 shall be 19 effective with respect to such employee upon the effective 20 date of the wage order issued pursuant to such recommenda21 tion, but not before sixty days after the effective date of the

22

2 2 2

23

24

Fair Labor Standards Amendments of 1973.

"(B) Upon the issuance of the wage order required by

subparagraph (A) of this paragraph, the provisions of

25 paragraph (2) shall apply.

1

g

"(4) In the case of any employee employed in agricul

2 ture who is covered by a wage order issued by the Secretary

3 pursuant to the recommendations of a special industry committee appointed pursuant to section 5 and whose hourly wage

4

5

is increased above the wage rate prescribed by such 6 wage order by a subsidy (or income supplement) paid, in 7 whole or in part, by the government of Puerto Rico, the folglowing rates shall apply:

9

10

11

12

24

13

14

15

16

17

18

19

"(A) The rate or rates applicable under the most recent such wage order issued by the Secretary, increased by (i) the amount by which such employee's hourly wage is increased above such rate or rates by the subsidy (or other income supplement), and (ii) $0.20:

"(B) Beginning one year after the effective date of the Fair Labor Standards Amendments of 1973, the provisions of subparagraph 2 (C) and 2 (D) of this subsection shall apply.".

(e) Section 6(e) is amended to read as follows: "(e) Notwithstanding the provisions of section 13 of 20 this Act (except subsections (a) (1) and (f) thereof), 21 every employer providing any contract services under a 22 contract with the United States or any subcontract there23 under shall pay to each of his employees whose rate of pay 24 is not governed by the Service Contract Act of 1965 (41

10

1 U.S.C: 351–357), as amended, or to whom subsection (a) 2 of this section is not applicable, wages at rates not less than 3 the rates provided for in subsection (b) of this section.". 4. (f) Section 6 of such Act is amended by adding at the 5 end thereof the following new subsection:

6

"(f) Every employer who in any workweek employs 7 any employee in domestic service in a household shall pay 8 such employee wages at a rate not less than the wage rate in 9 effect under subsection (b) of this section, unless such em10 ployee's compensation for such service would not, as deter11 mined by the Secretary, constitute 'wages' under section 209 12 of the Social Security Act.".

13

MAXIMUM HOURS

SEC. 4. (a) Section 7 of the Fair Labor Standards Act

15 of 1938, as amended, is amended by striking out subsections 16. (a), (c), and (d) and inserting in lieu thereof the following 17 new subsection (a):

18

"(a) No employer shall employ any of his employees 19 who in any workweek is engaged in commerce or in the 20 production of goods for commerce, or is employed in an en21 terprise engaged in commerce or in the production of goods 22 for commerce, for a workweek longer than forty hours 23 unless such employee receives compensation for his employ24 ment in excess of the hours above specified at a rate not

11

1 less than one and one-half times the regular rate at which

2 he is employed.".

3 (b) (1) Subsections (e), (f), (g), (h), (i), and (j)

4 of section 7 of such Act, are redesignated as subsections (c),

5 (d), (e), (f), (g), and (h), respectively.

6

(2) Subsection (e) (as redesignated by paragraph 7 (1)) of section 7 of such Act is amended by striking out 8 "(e)" in the text of such subsection (e) and inserting in 9 lieu thereof "(c)”.

10

(3) Subsection (f) (as redesignated by paragraph 11 (1)) of section 7 of such Act is amended by striking out 12 "(e)" in the text of such subsection (f) and inserting in lieu 13 thereof "(c)".

14

(c) Section 7 of such Act is amended by adding at the 15 end thereof the following new subsections:

16 "(i) No State or political subdivision of a State shall 17 be deemed to have violated subsection (a) with regard 18 to any employee engaged in fire protection or law enforce19 ment activities (including security personnel in correctional 20 institutions) if, pursuant to an agreement or understanding 21 arrived at between the employer and the employee before 22 performance of the work, a work period of twenty-eight con23 secutive days is accepted in lieu of the workweek of seven 24 consecutive days for purposes of overtime computation and