Subsec. (a)(7). Pub. L. 89-601, § 215(c), extended coverage to include employees exempted by a certificate of the Secretary.

Subsec. (a)(8). Pub. L. 89-601, § 205, substituted "where published" for "where printed and published". Subsec. (a)(9). Pub. L. 89-601, §§ 206(a), 207, repealed par. (9) covering employees of street, suburban, or interurban electric railways, or local trolleys or motor bus carriers not in a section 203(s) enterprise and enacted a new par. (9) covering employees employed by motion picture theaters. See subsec. (b)(7) of this section.

Subsec. (a)(10). Pub. L. 89-601, §§ 204(a), 215(b)(1), repealed par. (10) relating to employees engaged in handling and processing of agricultural, horticultural, and dairy products and redesignated par. (11) as par. (10). See section 207(d) of this title.

Subsec. (a)(11). Pub. L. 89-601, § 215(b)(1), redesignated par. (13) as par. (11). Former par. (11) redesignated par. (10).

Subsec. (a)(12). Pub. L. 89-601, §§ 206(b)(1), 215(b)(1), repealed par. (12) covering employees of employers engaged in the business of operating taxicabs and redesignated par. (14) as (12). See subsec. (b)(17) of this section.

Subsec. (a)(13). Pub. L. 89-601, §§ 208, 215(b)(1), redesignated par. (15) as (13) and, in par. (13) as so redesignated, substituted "eight" for "twelve". Former par. (13) redesignated (11).

Subsec. (a)(14). Pub. L. 89-601, § 215(b), redesignated par. (21) as (14), and, at the end of par. (14) as so redesignated, substituted a period for “; or". Former par. (14) redesignated as par. (12).

Subsec. (a)(15). Pub. L. 89-601, § 215(b)(1), redesignated par. (15) as (13).

Subsec. (a)(16). Pub. L. 89-601, § 203(b), repealed par. (16) which created an exemption for agricultural employees employed in livestock auctions. See subsec. (b)(13) of this section.

Subsec. (a)(17). Pub. L. 89-601, § 204(a), repealed par. (17) dealing with country elevator operators. See subsec. (b)(14) of this section.

Subsec. (a)(18). Pub. L. 89-601, § 204(a), repealed par. (18) dealing with cotton ginning employees. See subsec. (b)(15) of this section.

Subsec. (a)(19). Pub. L. 89-601, § 209(a), repealed par. (19) covering employees of retail and service establishments that are primarily engaged in the business of selling automobiles, trucks, or farm implements. See subsec. (b)(10) of this section.

Subsec. (a)(20). Pub. L. 89-601, § 210(a), repealed par. (20) covering employees of food retail or service establishments. See subsec. (b)(18) of this section.

Subsec. (a)(21). Pub. L. 89-601, § 215(b)(1), redesignated par. (21) as (14).

Subsec. (a)(22). Pub. L. 89-601, § 204(a), repealed par. (22) dealing with fruit and vegetable transportation employees. See subsec. (b)(16) of this section.

Subsec. (b)(1). Pub. L. 89-670 substituted "Secretary of Transportation" for "Interstate Commerce Commission".

Subsec. (b)(7). Pub. L. 89-601, § 206(c), narrowed the scope of the exemption from any employee of the covered transportation companies to drivers, operators, and conductors only and narrowed the range of covered transportation companies from any street, suburban, or interurban electric railway, or local trolley or motorbus carrier to only those of such named enterprises as have their rates and service subject to regulation by a state or local agency.

Subsec. (b)(8). Pub. L. 89-601, §§ 201(b)(1), 211, repealed former par. (8) which named employees of gasoline service stations as a group to which section 207 of this title shall not apply and enacted a new par. (8) providing that section 207 of this title shall not apply with respect to hotel, motel, or restaurant employees and employees who receive compensation for employment in excess 48 hours in any workweek at a rate not less than one and one-half times the regular rate at which he is employed and who is employed by an insti

tution other than a hospital primarily engaged in the care of the sick, the aged, or the mentally ill or defective residing on the premises.

Subsec. (b)(10). Pub. L. 89-601, §§ 209(b), 212(a), repealed former par. (10) which granted an unlimited overtime exemption covering petroleum distribution employees and enacted a new par. (10) covering salesmen, partsmen, or mechanics primarily engaged in selling or servicing automobiles, trailers, trucks, farm implements, or aircraft if employed by a nonmanufacturing establishment primarily engaged in the business of selling such vehicles to ultimate purchasers. See subsec. (b)(3) of this section.

Subsec. (b)(12) to (19). Pub. L. 89-601, §§ 203(c)(B), 204(b), 206(b)(2), 210(b), added pars. (12) to (19).

Subsec. (c). Pub. L. 89-601, § 203(d), added provision making section 212 of this title relating to child labor applicable to an employee below the age of sixteen employed in agriculture in an occupation that the Secretary of Labor finds and declares to be particularly hazardous for the employment of children below the age of sixteen, except where such employee is employed by his parent or by a person standing in the place of his parent on a farm owned or operated by such parent or person.

Subsec. (f). Pub. L. 89-601, § 213, inserted reference to Eniwetok Atoll, Kwajalein Atoll, and Johnston Island.

1961-Subsec. (a)(1). Pub. L. 87-30, § 9, substituted "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 from time to time by regulations of the Secretary, subject to, the provisions of the Administrative Procedure Act" and the exception provision for "any employee employed in a bona fide executive, administrative, professional, or local retailing capacity, or in the capacity of outside salesman (as such terms are defined and delimited by regulations of the Administrator)".

Subsec. (a)(2). Pub. L. 87-30, § 9, inserted the conditional provision, including subclauses (1) to (iv).

Subsec. (a)(5). Pub. L. 87-30, § 9, inserted “propagating" and "or in the first processing, canning or packing such marine products at sea as an incident to, or in conjunction with, such fishing operations" following "taking" and "life", respectively, and substituted "loading and unloading when performed by any such employee" for "including employment in the loading, unloading, or packing of such products for shipment or in propagating, processing (other than canning), marketing, freezing, curing, storing, or distributing the above products or byproducts thereof". See subsec. (b)(4) of this section.

Subsec. (a)(7). Pub. L. 87-30, § 9, substituted "Secretary" for "Administrator".

Subsec. (a)(9). Pub. L. 87-30, § 9, substituted "not in an enterprise described in section 203(s)(2) of this title" for "not included in other exemptions contained in this section.".

Subsec. (a)(10). Pub. L. 87-30, § 9, substituted "Secretary" for "Administrator" and eliminated "ginning" following "storing".

Subsec. (a)(11). Pub. L. 87-30, § 9, substituted "by an independently owned public telephone company" for "in a public telephone exchange".

Subsec. (a)(13). Pub. L. 87-30, § 9, substituted "which qualifies as an exempt retail or service establishment under clause (2) of this subsection" for "as defined in clause (2) of this subsection".

Subsec. (a)(14). Pub. L. 87-30, § 9, added "on a vessel other than an American vessel”.

Subsec. (a)(16) to (22). Pub. L. 87-30, § 9, added pars. (16) to (22).

Subsec. (b)(4). Pub. L. 87-30, § 9, extended the exemption to any employee in the processing, marketing, freezing, curing, storing, packing for shipment, or distributing of aquatic forms of life, formerly contained in subsec. (a)(5) of this section.

Subsec. (b)(6) to (11). Pub. L. 87-30, § 9, added pars. (6) to (11).

Subsec. (d). Pub. L. 87-30, § 10, extended the nonapplicability of sections 206, 207, and 212 of this title to any homeworker engaged in the making of evergreen wreaths.

1960-Subsec. (f). Pub. L. 86-624 eliminated "Alaska; Hawaii;" preceding "Puerto Rico".

1957-Subsec. (f). Pub. L. 85-231 added subsec. (f). 1956-Subsec. (e). Act Aug. 8, 1956, added subsec. (b). 1949-Subsec. (a)(2). Act Oct. 26, 1949, clarified exemption by defining term "retail or service establishment" and stated conditions under which exemption shall apply.

Subsec. (a)(3). Act Oct. 26, 1949, redesignated par. (3) as (14) and added par. (3) providing a limited exemption to employees of laundries and establishments engaged in laundering, cleaning, or repairing clothing of fabrics.

Subsec. (a)(4). Act Oct. 26, 1949, redesignated par. (4) as subsec. (b)(3) and added par. (4) providing limited exemption to employees of retail establishments making or processing goods.

Subsec. (a)(5). Act Oct. 26, 1949, omitted canning of fish, shellfish, etc. See subsec. (b)(4).

Subsec. (a)(6). Act Oct. 26, 1949, added irrigation workers to the exemption.

Subsec. (a)(8). Act Oct. 26, 1949, extended exemption to employees of newspapers published daily, increased circulation limitation from 3,000 to 4,000, and increased circulation area to include counties contiguous to county of publication.

Subsec. (a)(10). Act Oct. 26, 1949, omitted "to" preceding "any individual".

Subsec. (a)(11). Act Oct. 26, 1949, increased number of stations from, less than 500, to, not more than 750. Subsec. (a)(12), (13). Act Oct. 26, 1949, added pars. (12) and (13).

Subsec. (a)(14). Act Oct. 26, 1949, redesignated former par. (3) as (14).

Subsec. (a)(15). Act Oct. 26, 1949, added par. (15). Subsec. (b)(3) to (5). Act Oct. 26, 1949, added pars. (3) to (5).

Subsec. (c). Act Oct. 26, 1949, substituted "outside of school hours for the school district where such employee is living while he is so employed" for prior provision relating to school attendance following "in agricultural", and added radio or television productions to the exemption.

Subsec. (d). Act Oct. 26, 1949, added par. (d). 1939-Subsec. (a)(11). Act Aug. 9, 1939, added par.

(11).

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-70 effective Oct. 1, 1979, see section 3304 of Pub. L. 96-70, set out as an Effective Date note under section 3601 of Title 22, Foreign Relations and Intercourse.

EFFECTIVE DATE OF 1977 AMENDMENT Amendment of subsecs. (a)(2), (3), relating to camps, etc., and (c)(1) and (4) by Pub. L. 95-151 effective on Nov. 1, 1977, see section 15(b) of Pub. L. 95-151, set out as a note under section 203 of this title.

Amendment of subsecs. (a)(3), relating to private employees in national parks, etc., (b)(22), (25), (26), (29), (i) and (j) by Pub. L. 95-151 effective Jan. 1, 1978, see section 15(a) of Pub. L. 95-151, set out as a note under section 203 of this title.

Section 14(a) of Pub. L. 95-151 provided in part that the amendment of subsec. (b)(8) of this section by section 14(a) of Pub. L. 95-151 is effective Jan. 1, 1978.

Section 14(b) of Pub. L. 95-151 provided in part that the repeal of subsec. (b)(8) of this section by section 14(b) of Pub. L. 95-151 is effective Jan. 1, 1979.

EFFECTIVE DATE OF 1974 AMENDMENT

Section 6(c)(2)(B) of Pub. L. 93-259 provided in part that amendment of subsec. (b)(20) by such section shall be effective Jan. 1, 1975.

Section 8(a) to (c) of Pub. L. 93-259 provided in part that amendment of subsec. (a)(2) by such section shall be effective Jan. 1, 1975, 1976, and 1977, respectively. Section 10(b)(2), (3) of Pub. L. 93-259 provided in part that amendment and repeal of subsec. (b)(23) by section 10(b)(2), (3) of Pub. L. 93-259 shall be effective one year and two years after May 1, 1974, respectively. Section 11(b), (c) of Pub. L. 93-259 provided in part that amendment and repeal of subsec. (b)(4) by section 11(b), (c) of Pub. L. 93-259 shall be effective one year and two years after May 1, 1974, respectively.

Section 13(b) to (d) of Pub. L. 93-259 provided in part that amendment of subsec. (b)(8) by section 13(b) to (d) of Pub. L. 93-259 shall be effective one year, two years, and three years after May 1, 1974, respectively. Section 15(b), (c) of Pub. L. 93-259 provided in part that amendment and repeal of subsec. (b)(18) by section 15(b), (c) of Pub. L. 93-259 shall be effective one year and two years after May 1, 1974, respectively.

Section 16(a), (b) of Pub. L. 93-259 provided in part that amendment and repeal of subsec. (b)(19) by section 16(a), (b) of Pub. L. 93-259 shall be effective one year and two years after May 1, 1974, respectively.

Section 20(b)(2), (3) of Pub. L. 93-259 provided in part that amendment of subsec. (b)(25) by section 20(b)(2), (3) of Pub. L. 93-259 shall be effective Jan. 1, 1975, and 1976, respectively.

Section 20(c)(2), (3) of Pub. L. 93-259 provided in part that amendment of subsec. (b)(26) by section 20(b)(2), (3) of Pub. L. 93-259 shall be effective Jan. 1, 1975, and 1976, respectively.

Section 21(b)(2), (3) of Pub. L. 93-259 provided in part that amendment and repeal of subsec. (b)(7) by section 21(b)(2), (3) of Pub. L. 93-259 shall be effective one year and two years after May 1, 1974, respectively. Addition of subsecs. (a)(15), (b)(20) to (28), (g), (h), amendment of subsecs. (b)(2), (4), (7), (8), (10), (15), (18), (c)(1), and repeal of subsecs. (a)(9), (11), (13), and (14) by Pub. L. 93-259 effective May 1, 1974, see section 29(a) of Pub. L. 93-259, set out as a note under section 202 of this title.

EFFECTIVE Date of 1966 AMENDMENTS Amendment by Pub. L. 89-670 effective Apr. 1, 1967, as prescribed by the President and published in the Federal Register, see section 16(a), formerly § 15(a), of Pub. L. 89-670 and Ex. Ord. No. 11340, Mar. 30, 1967, 32 F.R. 5453, set out as notes under section 1651 of Title 49, Appendix, Transportation.

Amendment by Pub. L. 89-601 effective, except as otherwise provided in Pub. L. 89-601, on Feb. 1, 1967, see section 602 of Pub. L. 89-601, set out as a note under section 203 of this title.

EFFECTIVE DATE OF 1961 AMENDMENT Amendment by Pub. L. 87-30 effective upon expiration of one hundred and twenty days after May 5, 1961, except as otherwise provided, see section 14 of Pub. L. 87-30, set out as a note under section 203 of this title.

EFFECTIVE DATE OF 1957 AMENDMENT

Pub. L. 85-231, § 2, provided that: "The amendments made by this Act [amending sections 213(f), 216(d), and 217 of this title] shall take effect upon the expiration of ninety days from the date of its enactment [Aug. 30, 1957]."

EFFECTIVE DATE OF 1949 AMENDMENT Amendment by act Oct. 26, 1949, effective ninety days after Oct. 26, 1949, see section 16(a) of act Oct. 26, 1949, set out as a note under section 202 of this title.

TRANSFER OF FUNCTIONS

All functions vested by law (including reorganization plans) in the Bureau of the Budget or the Director of the Bureau of the Budget were transferred to the

President of the United States by section 101 of Reorg. Plan No. 2 of 1970, eff. July 1, 1970, 35 F.R. 7959, 84 Stat. 2085, set out in the Appendix to Title 5, Government Organization and Employees. Section 102 of Reorg. Plan No. 2 of 1970 redesignated the Bureau of the Budget as the Office of Management and Budget.

For transfer of functions of other officers, employees, and agencies of the Department of Labor, with certain exceptions, to the Secretary of Labor, with power to delegate, see Reorg. Plan No. 6 of 1950, §§ 1, 2, 15 F.R. 3174, 64 Stat. 1263, set out in the Appendix to Title 5.

PUBLIC AGENCY EMPLOYEES IN FIRE PROTECTION AND LAW ENFORCEMENT ACTIVITIES; STUDIES IN 1976 of 1975 TOURS OF DUTY

Section 6(c)(3) of Pub. L. 93-259 authorized the Secretary of Labor to conduct a study in 1976 of the average number of hours in tours of duty in work periods in 1975 of certain employees of public agencies employed in fire protection and law enforcement activities, and publish the results of such studies in the Federal Register.

PIPELINE EMPLOYEES UNDER SUBSEC. (b)(2) Section 23(c) of Pub. L. 93-259 provided in part for amendment of subsec. (b)(2) of this section "insofar as it relates to pipeline employees".

RULES, REGULATIONS, AND ORDERS PROMULGATED WITH REGARD TO 1966 AMENDMENTS

Secretary authorized to promulgate necessary rules, regulations, or orders on and after the date of the enactment of Pub. L. 89-601, Sept. 23, 1966, with regard to the amendments made by Pub. L. 89-601, see section 602 of Pub. L. 89-601, set out as a note under section 203 of this title.

STUDY OF AGRICULTURAL HANDLING AND PROCESSING EXEMPTIONS AND RATES OF PAY IN EXEMPT FOOD SERVICE ENTERPRISES

Section 13 of Pub. L. 87-30 authorized the Secretary of Labor to study the complicated system of exemptions available for handling and processing agricultural products under this chapter and the complex problems involving rates of pay of certain employees exempted from the provisions of this chapter, and required the Secretary to submit the results of his studies along with his recommendations for proposed legislation to the second session of the Eighty-seventh Congress.

TRANSPORTATION OF MIGRANT FARM WORKERS Section 3 of act Aug. 3, 1956, provided that: "Section 13(b)(1) of the Fair Labor Standards Act, as amended [subsec. (b)(1) of this section] shall not apply in the case of any employee with respect to whom the Interstate Commerce Commission has power to establish qualifications and maximum hours of service solely by virtue of section 204(a)(3a) of the Interstate Commerce Act [49 U.S.C. 3102]."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 203, 206, 216, 218, 795, 1803 of this title; title 5 sections 5343, 5349; title 42 sections 300e-9, 3056, 8009.

§ 214. Employment under special certificates

(a) Learners, apprentices, messengers

The Secretary, to the extent necessary in order to prevent curtailment of opportunities for employment, shall by regulations or by orders provide for the employment of learners, of apprentices, and of messengers employed primarily in delivering letters and messages, under

special certificates issued pursuant to regulations of the Secretary, at such wages lower than the minimum wage applicable under section 206 of this title and subject to such limitations as to time, number, proportion, and length of service as the Secretary shall prescribe.

(b) Students

(1)(A) The Secretary, to the extent necessary in order to prevent curtailment of opportunities for employment, shall by special certificate issued under a regulation or order provide, in accordance with subparagraph (B), for the employment, at a wage rate not less than 85 per centum of the otherwise applicable wage rate in effect under section 206 of this title or not less than $1.60 an hour, whichever is the higher (or in the case of employment in Puerto Rico or the Virgin Islands not described in section 205(e) of this title, at a wage rate not less than 85 per centum of the otherwise applicable wage rate in effect under section 206(c) of this title), of full-time students (regardless of age but in compliance with applicable child labor laws) in retail or service establishments.

(B) Except as provided in paragraph (4)(B), during any month in which full-time students are to be employed in any retail or service establishment under certificates issued under this subsection the proportion of student hours of employment to the total hours of employment of all employees in such establishment may not exceed

(i) in the case of a retail or service establishment whose employees (other than employees engaged in commerce or in the production of goods for commerce) were covered by this chapter before the effective date of the Fair Labor Standards Amendments of 1974

(I) the proportion of student hours of employment to the total hours of employment of all employees in such establishment for the corresponding month of the immediately preceding twelve-month period,

(II) the maximum proportion for any corresponding month of student hours of employment to the total hours of employment of all employees in such establishment applicable to the issuance of certificates under this section at any time before the effective date of the Fair Labor Standards Amendments of 1974 for the employment of students by such employer, or

(III) a proportion equal to one-tenth of the total hours of employment of all employees in such establishment,

whichever is greater;

(ii) in the case of retail or service establishment whose employees (other than employees engaged in commerce or in the production of goods for commerce) are covered for the first time on or after the effective date of the Fair Labor Standards Amendments of 1974

(I) the proportion of hours of employment of students in such establishment to the total hours of employment of all employees in such establishment for the corresponding month of the twelve-month period

immediately prior to the effective date of such Amendments,

(II) the proportion of student hours of employment to the total hours of employment of all employees in such establishment for the corresponding month of the immediately preceding twelve-month period, or

(III) a proportion equal to one-tenth of the total hours of employment of all employees in such establishment,

whichever is greater; or

(iii) in the case of a retail or service establishment for which records of student hours worked are not available, the proportion of student hours of employment to the total hours of employment of all employees based on the practice during the immediately preceding twelve-month period in (I) similar establishments of the same employer in the same general metropolitan area in which such establishment is located, (II) similar establishments of the same or nearby communities if such establishment is not in a metropolitan area, or (III) other establishments of the same general character operating in the community or the nearest comparable community.

For purpose of clauses (i), (ii), and (iii) of this subparagraph, the term "student hours of employment" means hours during which students are employed in a retail or service establishment under certificates issued under this subsection.

(2) The Secretary, to the extent necessary in order to prevent curtailment of opportunities for employment, shall by special certificate issued under a regulation or order provide for the employment, at a wage rate not less than 85 per centum of the wage rate in effect under section 206(a)(5) of this title or not less than $1.30 an hour, whichever is the higher (or in the case of employment in Puerto Rico or the Virgin Islands not described in section 205(e) of this title, at a wage rate not less than 85 per centum of the wage rate in effect under section 206(c) of this title), of full-time students (regardless of age but in compliance with applicable child labor laws) in any occupation in agriculture.

(3) The Secretary, to the extent necessary in order to prevent curtailment of opportunities for employment, shall by special certificate issued under a regulation or order provide for the employment by an institution of higher education, at a wage rate not less than 85 per centum of the otherwise applicable wage rate in effect under section 206 of this title or not less than $1.60 an hour, whichever is the higher (or in the case of employment in Puerto Rico or the Virgin Islands not described in section 205(e) of this title, at a wage rate not less than 85 per centum of the wage rate in effect under section 206(c) of this title), of full-time students (regardless of age but in compliance with applicable child labor laws) who are enrolled in such institution. The Secretary shall by regulation prescribe standards and requirements to insure that this paragraph will not create a substantial probability of reducing the full-time employment opportunities of persons other than

those to whom the minimum wage rate authorized by this paragraph is applicable.

(4)(A) A special certificate issued under paragraph (1), (2), or (3) shall provide that the student or students for whom it is issued shall, except during vacation periods, be employed on a part-time basis and not in excess of twenty hours in any workweek.

(B) If the issuance of a special certificate under paragraph (1) or (2) for an employer will cause the number of students employed by such employer under special certificates issued under this subsection to exceed six, the Secretary may not issue such a special certificate for the employment of a student by such employer unless the Secretary finds employment of such student will not create a substantial probability of reducing the full-time employment opportunities of persons other than those employed under special certificates issued under this subsection. If the issuance of a special certificate under paragraph (1) or (2) for an employer will not cause the number of students employed by such employer under special certificates issued under this subsection to exceed six

(i) the Secretary may issue a special certificate under paragraph (1) or (2) for the employment of a student by such employer if such employer certifies to the Secretary that the employment of such student will not reduce the full-time employment opportunities of persons other than those employed under special certificates issued under this subsection, and

(ii) in the case of an employer which is a retail or service establishment, subparagraph (B) of paragraph (1) shall not apply with respect to the issuance of special certificates for such employer under such paragraph. The requirement of this subparagraph shall not apply in the case of the issuance of special certificates under paragraph (3) for the employment of full-time students by institutions of higher education; except that if the Secretary determines that an institution of higher education is employing students under certificates issued under paragraph (3) but in violation of the requirements of that paragraph or of regulations issued thereunder, the requirements of this subparagraph shall apply with respect to the issuance of special certificates under paragraph (3) for the employment of students by such institution.

(C) No special certificate may be issued under this subsection unless the employer for whom the certificate is to be issued provides evidence satisfactory to the Secretary of the student status of the employees to be employed under such special certificate.

(D) To minimize paperwork for, and to encourage, small businesses to employ students under special certificates issued under paragraphs (1) and (2), the Secretary shall, by regulation or order, prescribe a simplified application form to be used by employers in applying for such a certificate for the employment of not more than six full-time students. Such an application shall require only

(i) a listing of the name, address, and business of the applicant employer,

(ii) a listing of the date the applicant began business, and

(iii) the certification that the employment of such full-time students will not reduce the full-time employment opportunities of persons other than persons employed under special certificates.

(c) Handicapped workers

(1) Except as otherwise provided in paragraphs (2) and (3) of this subsection, the Secretary of Labor, to the extent necessary in order to prevent curtailment of opportunities for employment, shall by regulation or order provide for the employment under special certificates of individuals (including individuals employed in agriculture) whose earning or productive capacity is impaired by age or physical or mental deficiency or injury, at wages which are lower than the minimum wage applicable under section 206 of this title but not less than 50 per centum of such wage and which are commensurate with those paid nonhandicapped workers in industry in the vicinity for essentially the same type, quality, and quantity of work.

(2) The Secretary, pursuant to such regulations as he shall prescribe and upon certification of the State agency administering or supervising the administration of vocational rehabilitation services, may issue special certificates for the employment of—

(A) handicapped workers engaged in work which is incidental to training or evaluation programs, and

(B) multihandicapped individuals and other individuals whose earning capacity is so severely impaired that they are unable to engage in competitive employment,

at wages which are less than those required by this subsection and which are related to the worker's productivity.

(3)(A) The Secretary may by regulation or order provide for the employment of handicapped clients in work activities centers under special certificates at wages which are less than the minimums applicable under section 206 of this title or prescribed by paragraph (1) of this subsection and which constitute equitable compensation for such clients in work activities centers.

(B) For purposes of this section, the term "work activities centers" shall mean centers planned and designed exclusively to provide therapeutic activities for handicapped clients whose physical or mental impairment is so severe as to make their productive capacity inconsequential.

(d) Employment by schools

The Secretary may by regulation or order provide that sections 206 and 207 of this title shall not apply with respect to the employment by any elementary or secondary school of its students if such employment constitutes, as determined under regulations prescribed by the Secretary, an integral part of the regular education program provided by such school and such employment is in accordance with applicable child labor laws.

(June 25, 1938, ch. 676, § 14, 52 Stat. 1068; Oct. 26, 1949, ch. 736, § 12, 63 Stat. 918; May 5, 1961,

Pub. L. 87-30, § 11, 75 Stat. 74; Sept. 23, 1966, Pub. L. 89-601, title V, § 501, 80 Stat. 842; Apr. 8, 1974, Pub. L. 93-259, § 24(a), (b), 88 Stat. 69, 72; Nov. 1, 1977, Pub. L. 95-151, §§ 12, 13, 91 Stat. 1252.)

REFERENCES IN TEXT

Effective date of the Fair Labor Standards Amendments of 1974, referred to in subsec. (b)(1)(B)(i) and (ii), means May 1, 1974, except as otherwise specifically provided, under provisions of section 29(a) of Pub. L. 93-259, set out as an Effective Date of 1974 Amendment note under section 202 of this title.

AMENDMENTS

1977-Subsec. (b)(4)(B). Pub. L. 95-151, § 12(a), substituted "six" for "four" wherever appearing therein. Subsec. (b)(4)(D). Pub. L. 95-151, § 13, added subpar. (D).

1974-Subsec. (a). Pub. L. 93-259, § 24(a), added subsec. (a) and struck out former subsec. (a) which had provided: "The Secretary of Labor, to the extent necessary in order to prevent curtailment of opportunities for employment, shall by regulations or by orders provide for the employment of learners, of apprentices, and of messengers employed primarily in delivery letters and messages, under special certificates issued pursuant to regulations of the Secretary, at such wages lower than the minimum wage applicable under section 206 of this title and subject to such limitations as to time, number, proportion, and length of service as the Secretary shall prescribe.”

Subsec. (b). Pub. L. 93-259, § 24(a), added subsec. (b) and struck out former subsec. (b) which had provided: "The Secretary, to the extent necessary in order to prevent curtailment of opportunities for employment, shall by regulation or order provide for the employment of full-time students, regardless of age but in compliance with applicable child labor laws, on a parttime basis in retail or service establishments (not to exceed twenty hours in any workweek) or on a parttime or full-time basis in such establishments during school vacations, under special certificates issued pursuant to regulations of the Secretary, at a wage rate not less than 85 per centum of the minimum wage applicable under section 206 of this title, except that the proportion of student hours of employment to total hours of employment of all employees in any establishment may not exceed (1) such proportion for the corresponding month of the twelve-month period preceding May 1, 1961, (2) in the case of a retail or service establishment whose employees (other than employees engaged in commerce or in the production of goods for commerce) are covered by this chapter for the first time on or after the effective date of the Fair Labor Standards Amendments of 1966, such proportion for the corresponding month of the twelve-month period immediately prior to such date, or (3) in the case of a retail or service establishment coming into existence after May 1, 1961, or a retail or service establishment for which records of student hours worked are not available, a proportion of student hours of employment to total hours of employment of all employees based on the practice during the twelve-month period preceding May 1, 1961, in (A) similar establishments of the same employer in the same general metropolitan area in which the new establishment is located, (B) similar establishments of the same employer in the same or nearby counties if the new establishment is not in a metropolitan area, or (C) other establishments of the same general character operating in the community or the nearest comparable community. Before the Secretary may issue a certificate under this subsection he must find that such employment will not create a substantial probability of reducing the full-time employment opportunities of persons other than those employed under this subsection."