Summary: H.R.2710 — 101st Congress (1989-1990)All Information (Except Text)

Bill summaries are authored by CRS.

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Passed House amended (11/01/1989)

Fair Labor Standards Amendments of 1989 - Amends the Fair Labor Standards Act of 1938 (the Act) to increase the minimum wage per hour from $3.35 in 1989 to: (1) $3.80 beginning April 1, 1990; and (2) $4.25 beginning April 1, 1991, and thereafter.

Increases the small business exemption by revising the definition of an enterprise engaged in commerce for purposes of coverage under the Act ("the enterprise test"). Exempts from such coverage those businesses whose annual gross volume of sales or business is less than $500,000 (currently $362,500), effective April 1, 1990. Requires employers who were covered as of March 31, 1990, but who are exempt under the new threshold, to continue to pay the $3.35 per hour minimum wage (and continue to be covered by overtime and child labor provisions of the Act).

Removes the Virgin Islands from coverage by provisions for special industry committee minimum wage determinations and orders, including those involving employment under special certificates for learners, apprentices, and messengers and for students. Adds references to American Samoa under such provisions (American Samoa is currently covered by such provisions through references under other special minimum wage provisions). Removes references to Puerto Rico under such provisions, but continues and revises the special minimum wage treatment of Puerto Rico as follows: (1) in addition to designated types of employees (Federal, hotel, motel, restaurant, and food service) entitled to receive the full Federal minimum wage, employees in industries averaging $4.65 or more per hour would be so entitled; (2) employees in industries averaging from $4.00 to $4.64 per hour would receive the full rate by April 1, 1994, after a four-year period of gradual increases; (3) employees in industries averaging less than $4.00 per hour would receive the full rate by April 1, 1995, after a five-year period of gradual increases; and (4) employees of the Commonwealth of Puerto Rico, or a municipality or other governmental entity of the Commonwealth, in categories averaging less than $4.00 per hour and covered by 1985 amendments to the Act, would receive the full rate by April 1, 1996, after a six-year period of gradual increases.

Increases the tip credit under the Act from 40 percent to 45 percent beginning April 1, 1990, and to 50 percent beginning April 1, 1991. (The tip credit deems the amount paid to a tipped employee, for minimum wage purposes, to be increased by an amount determined by the employer, but not by an amount in excess of the specified percentage of the applicable minimum wage rate.)

Allows employers to pay a training wage at less than the minimum wage rate. Allows such training wage to be paid only: (1) for an initial period until the employee has been employed a cumulative total of 90 days; or (2) for an additional 90-day period with another employer if a certificate is issued by the Secretary of Labor (the Secretary). Prohibits payment of such training wage to migrant or seasonal agricultural workers or nonimmigrant aliens or individuals more than 19 years old. Makes the individual responsible for providing proof of previous periods of employment with other employers. Allows such training wage to be paid only during the period from April 1, 1990, through March 31, 1993. Sets such training wage at: (1) not less than $3.35 per hour during the year beginning April 1, 1990; and (2) beginning April 1, 1991, not less than $3.35 per hour or 85 percent of the minimum wage, whichever is greater. Prohibits layoffs or termination of employment or reduction of the number of regular employees because of the training wage. Prohibits employee hours at the training wage during any month from exceeding one-fourth of all employee hours in the establishment. Sets forth notice requirements and enforcement provisions. Sets forth requirements for certification for the additional 90-day period of the training wage. Directs the Secretary to report to the Congress by March 1, 1993, on the effectiveness of the training wage.

Exempts from overtime provisions of the Act up to ten hours in any workweek if during such time the employee is receiving certain remedial education.

Applies the rights and protections under the Act to any employee: (1) in an employment position in, and any employing authority of, the House of Representatives, using remedies and procedures under the Fair Employment Practices Resolution; or (2) employed under the Architect of the Capitol.

Adds civil penalties for repeated or willful violations of specified provisions of the Act.