[S. 2404, 84th Cong., 1st sess.] A BILL To amend the Fair Labor Standards Act of 1938, as amended Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Overseas Fair Labor Standards Amendments of 1955". SEC. 2. Section 6 of the Fair Labor Standards Act of 1938, as amended, is amended by striking out the period at the end of paragraph (2) in subsection (a), and inserting in lieu thereof a semicolon and the following new paragraph: "(3) If such employee is employed in Guam, American Samoa, or Wake Island, not less than the applicable rate established by the Secretary of Labor as herein provided. The provisions of paragraph (1) of this subsection shall not apply to any employee specified in this paragraph (3), but when the Secretary of Labor finds that economic conditions in such possession, in a specific area or areas thereof, or in relation to particular work to be performed therein warrant, he shall determine and promulgate, following a public hearing on the matter, the minimum wage rate which he shall find appropriate for such geographical area or particular work in conformity with the policy of this Act. In making such a determination, the Secretary shall take into account the level of the economy of the area and its capacity to sustain the rate without causing substantial curtailment of employment, substantial hardship to business enterprise, or other disruptive effects; and he shall also take into account the reasonable relationship of such rate to wage rates paid in neighboring economies on which such area draws substantially for its labor supply. The minimum wage rate thus established by the Secretary shall not exceed the rate prescribed in paragraph (1) of this subsection." SEC. 3. Section 13 of such Act is amended by adding at the end thereof the following new subsections (e) and (f): "(e) The provisions of sections 6, 7, 11, and 12 shall not apply with respect to any employee whose services during the workweek are performed in a work place within a foreign country or within territory under the jurisdiction of the United States other than the following: A State of the United States; the District of Columbia; Alaska; Hawaii; Puerto Rico; the Virgin Islands; outer Continental Shelf lands defined in the Outer Continental Shelf Lands Act (ch. 345, 67 Stat. 462); and the possessions named in section 6 (a) (3). "(f) The provisions of section 7 and section 12 shall not apply with respect to employees for whom the Secretary of Labor is authorized to establish minimum wage rates as provided in section 6 (a) (3), except with respect to employees for whom such rates are in effect; and with respect to such employees the Secretary may make rules and regulations providing reasonable limitations and allowing reasonable variations, tolerances, and exemptions to and from any or all of the provisions of sections 7 and 12 if he shall find, after a public hearing on the matter, and taking into account the factors set forth in section 6 (a) (3), that economic conditions warrant such action." SEC. 4. Section 16 of such Act is amended by adding at the end thereof the following new subsection (d): "(d) In any action or proceeding commenced prior to, on, or after the date of enactment of this subsection, no employer shall be subject to any liability or punishment under this Act or the Portal-to-Portal Act of 1947 on account of his failure to comply with any provision or provisions of such Acts with respect to work performed in a work place to which the exemption in section 13 (e) is applicable or with respect to work performed in a possession named in section 6 (a) (3) at any time prior to the establishment by the Secretary, as provided therein, of a minimum wage rate applicable to such work." SEC. 5. Section 17 of such Act is amended by striking the word "and" after the words "Canal Zone", and inserting the words "and the District Court of Guam" after the words "Virgin Islands." Hon. LISTER HILL, DEPARTMENT OF THE INTERIOR, OFFICE OF THE SECRETARY, Washington 25, D., C., May 8, 1956. Chairman, Committee on Labor and Public Welfare, MY DEAR SENATOR HILL: This responds to your request for the views of this Department on S. 2404, a bill to amend the Fair Labor Standards Act of 1938, as amended. The Fair Labor Standards Act of 1938, as amended, is by its terms applicable to the 48 States, the District of Columbia, the Territories and possessions of the United States, and the Commonwealth of Puerto Rico, although provision is made for flexibility in the determination of the minimum wage required to be paid in Puerto Rico and the Virgin Islands (52 Stat. 1060, as amended, 29 U. S. C. 201). The purpose of S. 2404 is to provide for a determination by the Secretary of Labor of minimum wages which he finds are proper for the economy of the area in Guam, American Samoa, and Wake Island and to provide for such control over hours of labor and child labor affecting laborers covered by minimum-wage rates so determined as the Secretary finds that economic conditions may warrant. It is believed that this would provide such protection in regard to wages and hours of labor as may be needed without requiring application of the same protection afforded by the statute for more economically advanced areas. Section 2 of the bill would authorize the Secretary of Labor, when he finds that economic conditions warrant, to establish minimum wages for employees in Guam, American Samoa, and Wake Island. In the absence of such a determination by the Secretary of Labor, the current statutory minimum would not apply to those areas. Section 3 would limit the application of the act to the States, the District of Columbia, Alaska, Hawaii, Puerto Rico, the Virgin Islands, outer Continental Shelf lands, Guam, American Samoa, and Wake. Section 3 would also provide that the maximum-hour and child-labor provisions of the act shall not apply to Guam, American Samoa, and Wake until and to the extent that the Secretary of Labor imposes minimum wages for employees in those areas. The Secretary may then authorize reasonable variations and exemptions from the maximum-hour and child-labor provisions. This Department favors the enactment of legislation along the lines of S. 2404. It is our view that minimum-wage-rate determinations by the Secretary of Labor for Guam and American Samoa, in keeping with the economic development of each area, will be a more effective aid in advancing the general welfare of the workers and their communities, and, as a result, in promoting in those areas the purposes of the Fair Labor Standards Act, than attempts to cast their minimum-wage rates according to the rate pattern which has been adopted for the more highly developed economy of the mainland. It should be pointed out that not only is the general economic development of Guam and American Samoa at a much lower level than the economy of other American areas, but the economic levels of these two areas are substantially different from each other. The provisions of S. 2404 will permit the Secretary of Labor to take such differences into account and establish minimum rates for each area which will best meet its needs in accordance with the purposes and objectives of the Fair Labor Standards Act. This Department has no jurisdiction on Wake Island and therefore we limit our comments to the statement that we have no objection to the inclusion of Wake Island in the provisions of S. 2404. The Bureau of the Budget has advised that there is no objection to the submission of this report to your committee. Sincerely yours, CLARENCE A. DAVIS, Acting Secretary of the Interior. [S. 2748, 84th Cong., 1st sess.] A BILL To amend the Fair Labor Standards Act of 1938, as amended, to provide coverage for employees of large retail establishments whose activities affect interstate commerce, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Retail Establishment Amendments of 1955 to the Fair Labor Standards Act of 1938, as amended". FINDING AND DECLARATION OF POLICY SEC. 2. (a) Section 2 (a) of the Fair Labor Standards Act of 1938, as amended (hereinafter referred to as the "Act"), is amended to read as follows: "(a) The Congress hereby finds that the existence, in industries engaged in commerce or in the production of goods for commerce or in activities affecting commerce, of labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and general well-being of workers (1) causes commerce and the channels and instrumentalities of commerce to be used to spread and perpetuate such labor conditions among the workers of the several States; (2) burdens and affects commerce and the free flow of goods in commerce; (3) constitutes an unfair method of competition in commerce; (4) leads to labor disputes burdening and obstructing commerce and the free flow of goods in commerce; and (5) interferes with the orderly and fair marketing of goods in commerce." "(b) Section 2 (b) of such Act is amended to read as follows: "(b) It is hereby declared to be the policy of this chapter through the exercise by Congress of its powers to regulate commerce among the several States and with foreign nations, to correct and as rapidly as practicable to eliminate the conditions above referred to in such industries, including retail establishments affecting commerce, without substantially curtailing employment or earning power." DEFINITIONS SEC. 3. (a) Section 3 of such Act is amended by striking out subsection (n) thereof. (b) Section 3 of such Act is amended by adding at the end thereof the following: "(p) Activity affecting commerce' includes any activity in commerce necessary to commerce or competing with any activity in commerce or where the payment of wages at rates below those prescribed by this Act would burden or obstruct or tend to burden or obstruct commerce or the free flow of commerce." SPECIAL INDUSTRY COMMITTEES FOR PUERTO RICO AND THE VIRGIN ISLANDS SEC. 4. Section 5 (a) of such Act is amended by adding after the words ", or in Puerto Rico and the Virgin Islands, engaged in commerce or in the production of goods for commerce," and after the words, "or in the production of goods for commerce in particular industries" the following: "or employed in or about or in connection with any enterprise where an employer, having more than five retail establishments or having one or more retail establishments with a total annual volume of sales of more than $500,000, is engaged in any activity affecting commerce". MINIMUM WAGES SEC. 5. (a) That part of section 6 of such Act, which immediately precedes subparagraph (1) of such section, is amended to read as follows: "SEC. 6. (a) Every employer shall pay to each of his employees who is engaged in commerce or in the production of goods for commerce, and every employer who is engaged in any activity affecting commerce and who has more than five retail establishments or has one or more retail establishments with a total annual volume of sales of more than $500,000 shall pay to each of his employees employed in or about or in connection with any enterprise where he is so engaged, wages at the following rates :". (b) Section 6 (c) of such Act is amended by adding after the words "in the production of goods for commerce" the following: ", or employed in or about or in connection with any enterprise where an employer, having more than five retail establishments or having one or more retail establishments with a total annual volume of sales of more than $500,000 is engaged in any activity affecting commerce,”. MAXIMUM HOURS SEC. 6. Section 7 (a) of such Act is amended to read as follows: "(a) Except as otherwise provided in this section, no employer shall employ any of his employees who is engaged in commerce or in the production of goods for commerce, and no employed who is engaged in any activity affecting commerce and who has more than five retail establishments or has one or more establishments with a total annual volume of sales of more than $500,000 shall employ any of his employees employed in or about or in connection with any enterprise where he is so engaged, for a workweek longer than forty hours, or a workday longer than eight hours, unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is so employed." WAGE ORDERS IN PUERTO RICO AND THE VIRGIN ISLANDS SEC. 7. Section 8 (a) of such Act is amended by adding after the words "The policy of this chapter with respect to industries in Puerto Rico and the Virgin Islands engaged in commerce or in the production of goods for commerce" the following: "or in any retail activity affecting commerce" and by adding after the words in the second sentence of such section ", in Puerto Rico and the Virgin Islands, engaged in commerce or in the production of goods for commerce" the following: "or engaged in any activity affecting commerce and having more than five retail establishments or having one or more retail establishments with a total annual volume of sales of more than $500,000." CHILD LABOR SEC. 8. Section 12 (c) of such Act is amended to read as follows: "(c) No employer shall employ any oppressive child labor in commerce or in the production of goods for commerce and no employer who is engaged in any activity affecting commerce and who has more than five retail establishments or has one or more retail establishments with a total annual volume of sales of more than $500,000 shall employ any oppressive child labor in or about any establishment where he is so engaged." EXEMPTIONS SEC. 9. (a) Section (13) (a) (1) and (13) (a) (2) of such Act are amended to read as follows: "SEC. 13. (a) The provisions of sections 6 and 7 shall not apply with respect to (1) 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 by regulations of the Administrator); or (2) any employee employed in any retail establishment by an employer not having more than five such establishments and having a total annual volume of sales of not more than $500,000;". (b) Section 13 (a) of such Act is amended by striking out subparagraph 4, including the proviso of such subparagraph. PROHIBITED ACTS; PRIMA FACIE EVIDENCE SEC. 10. (a) Section 15 (a) (1) of such Act is amended by adding after the words "sell in commerce", the words "or in any activity affecting commerce", and after the words "sale thereof in commerce", the words "or in any activity affecting commerce". (b) Section 15 (b) of such Act is amended by adding after the words "sold in commerce", the words "or in any activity affecting commerce". EFFECTIVE DATE SEC. 11. The amendments made by this Act shall take effect upon the expiration of one hundred and twenty days from the date of its enactment. Hon. LISTER HILL, DEPARTMENT OF LABOR, Chairman, Committee on Labor and Public Welfare, United States Senate, Washington 25, D. C. DEAR SENATOR HILL: This is with further reference to your request regarding S. 2748, a bill to amend the Fair Labor Standards Act of 1938, as amended, to provide coverage for employees of large retail establishments whose activities affect interstate commerce, and for other purposes. As you know, the chairman of the Subcommittee on Labor of the Senate Committee on Labor and Public Welfare has requested the Department to develop plans for a special survey of wages and hours in retail trade. These plans have been developed and Congress has been asked to permit the use of appropriated funds to make the special study which, if authorized, would be completed early next year. The Senate Committee on Appropriations did not include this item in reporting the second supplemental appropriation bill. However, the committee indicated that consideration can be given to it in connection with this Department's regular 1957 appropriation bill, which is pending before the committee. This bill has not yet been reported out. I am strongly in favor of extending the protection of the Fair Labor Standards Act to additional workers. President Eisenhower has asked Congress to bring additional workers under the act and has pledged the full resources of the executive branch to assist Congress in finding ways to attain the goal of broadened coverage. The Department of Labor has been assisting the committees of Congress, including the Senate Subcommittee on Labor, in their study of this matter and will continue to render every possible assistance. In hearings scheduled on expansion of coverage under the Act, the Department of Labor will present its views. Sincerely yours, JAMES P. MITCHELL, [S. 2963, 84th Cong., 2d sess.] A BILL To amend the Fair Labor Standards Act of 1938, as amended, to exempt homeworkers in rural areas from the minimum wage and maximum hours provisions of that Act in certain cases Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (a) of section 13 of the Fair Labor Standards Act of 1938, as amended (29 U. S. C., sec. 213 (a)), is amended by inserting before the period at the end thereof the following: "; or (16) any homeworker in a rural area who is not subject to any supervision or control by any person whomsoever, and who buys raw material and makes and completes any article and sells the same to any person, even though it is made according to specifications and the requirements of some single purchaser”. [S. 3310, 84th Cong., 2d sess.] A BILL To amend the Fair Labor Standards Act of 1938, as amended, to provide greater coverage for employees of food industries whose activities affect interstate commerce, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Food Industries Amendments of 1956 to the Fair Labor Standards Act of 1938 as amended". FINDING AND DECLARATION OF POLICY SEC. 2. Section 2 (a) of the Fair Labor Standards Act of 1938, as amended (hereinafter referred to as the "Act"), is amended to read as follows: "(a) The Congress hereby finds that the existence, in industries engaged in commerce or in the production of goods for commerce or in activities affecting commerce, of labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and general well-being of workers (1) causes commerce and the channels and instrumentalities of commerce to be used to spread and perpetuate such labor conditions among the workers of the several States; (2) burdens and affects commerce and the free flow of goods in commerce; (3) constitutes an unfair method of competition in commerce; (4) leads to labor disputes burdening and obstructing commerce and the free flow of goods in commerce; and (5) interferes with the orderly and fair marketing of goods in commerce." DEFINITIONS SEC. 3. (a) Section 3 (j) of such Act is amended by striking out "or in any closely related process or occupation directly essential to the production thereof" and inserting in lieu thereof "or in any process or occupation necessary to the production thereof,". (b) Section 3 of such Act is further amended by adding at the end thereof the following: "(p) Activity affecting commerce' includes any activity in commerce necessary to commerce or competing with any activity in commerce, or where the |