Summary: S.4 — 101st Congress (1989-1990)All Information (Except Text)

Bill summaries are authored by CRS.

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Reported to Senate with amendment(s) (03/13/1989)

Minimum Wage Restoration Act of 1989 - Amends the Fair Labor Standards Act of 1938 to increase the Federal minimum wage per hour from $3.35 to: (1) $3.85 in 1990; (2) $4.25 in 1991; and (3) $4.65 in 1992 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 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 (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 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 in 1994 after a five-year of gradual increases; (3) employees in industries averaging less than $4.00 per hour would receive the full rate in 1995 after a six-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 in 1996 after a seven-year period of gradual increases.

Increases the tip credit under the Act from 40 percent to 45 percent for 1990 and to 50 percent for 1991 and thereafter. (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).