Summary: S.837 — 100th Congress (1987-1988)All Information (Except Text)

Bill summaries are authored by CRS.

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Reported to Senate with amendment(s) (07/26/1988)

(Reported to Senate from the Committee on Labor and Human Resources with amendment, S. Rept. 100-430)

Minimum Wage Restoration Act of 1988 - Amends the Fair Labor Standards Act of 1938 (the Act) to raise the Federal minimum wage per hour from $3.35 to: (1) $3.75 in 1989; (2) $4.15 in 1990; and (3) $4.55 in 1991 and thereafter.

Revises the definition of an enterprise engaged in commerce, for purposes of coverage under the Act ("the enterprise test"). Exempts from such coverage retail or service establishments whose annual gross volume of sales or business is less than $500,000 (currently $362,500), effective in 1989. Requires employers who were covered in 1988, but who are exempt under the new threshold, to continue to pay the $3.35 per hour minimum wage.

Revises provisions of the Act relating to Puerto Rico and the Virgin Islands.

Directs the Secretary of Labor, on petition of the Minimum Wage Board of Puerto Rico, to appoint a special industry committee to recommend the minimum rate or rates of wages to be paid under the Act to employees in Puerto Rico on a determination that: (1) there exists a significant and substantial difference between the wage structure of an industry in Puerto Rico and the prevailing wage structure of that industry on the mainland; (2) there is reasonable cause to believe that the full application of the minimum wage rate or rates under the Act would substantially curtail employment; and (3) notice of the Board's petition has been given to all interested parties and to the public in Puerto Rico. Directs industry committees to recommend minimum wage rates for Puerto Rico in such special circumstances. Authorizes the Secretary to issue wage orders (pursuant to special industry committee recommendations and subject to the exceptional circumstances described and to provisions for home workers) prescribing a wage order rate for an employee in Puerto Rico that is: (1) less than the minimum wage rate in effect under the Act; but (2) not less than $3.35 an hour.

Removes the Virgin Islands from coverage by provisions for special industry committee wage determinations, including those involving employment under special certificates for learners, apprentices, and messengers and for students.