Fair Labor Standards Act Prior to Fair Labor Standards Act as the 1961 Amendments Amended in 1961 MINIMUM WAGE-Continued Special Minimum Rates at The Secretary may authorize special rates The Secretary may also authorize the for learners, apprentices, messengers, and employment of full-time students in handicapped workers, when necessary to pre- retail or service establishments vent curtailment of opportunities for special rates, provided that such ememployment. ployment is not of the type ordinarily given to a full-time employee. The Secretary has authority to set lower rates by wage order for employees in industries in Puerto Rico, the Virgin Islands, and American Samoa, pursuant to recommendations of special industry committees. Provisions are made for a two-step increase in existing wage orders in Puerto Rico and the Virgin Islands: (1) 15 percent within 60 days after the effective date of the bill or 1 year from the effective date of the most recent wage order, whichever is later; (2) 10 percent 2 years after the 15 percent rate goes into effect. (Different rates could apply if they are recommended by review committees appointed in accordance with procedures in the act.) The minimum wage rates for employ. ees in these areas who would be newly covered would be established by wage orders effective no sooner than 60 days after the effective date of the bill. MAXIMUM HOURS One and one-half times the employee's "regular rate" for hours worked in excess of 40 in any workweek. No change for employees engaged in the type of employment previously subject to the overtime provisions. For employees engaged in the type of employment newly brought under the overtime provisions and for employees who, by the removal of a specific exemption previously applicable to them, become subject to the overtime requirements for the first time on September 3, 1961, compensation at a rate of not less than one and one-half times the regular rate of pay is required for all hours worked in workweeks in excess of: 44 hours beginning September 3, 1963 42 hours beginning September 3, 1964 40 hours beginning September 3, 1965 (No overtime requirements during the first two years) Fair Labor Standards Act Prior to Fair Labor Standards Act as the 1961 Amendments Amended in 1961 EXEMPTIONS (4) Employees exempt from minimum wage, overtime, and child labor provisions: Section 13(d) Employees engaged in the delivery of newspapers to the consumer. Employees engaged in the making of holly wreaths and the harvesting of evergreens used in the wreaths are partially exempt from the overtime requirements for 14 weeks a year. The child labor restrictions apply. No change. The exemption is extended to any engaged in homeworker making wreaths composed principally of natural holly, pine, cedar, or other evergreens (including the harvesting of the forest products used in making such wreaths). (b) Employees exempt from minimum wage and overtime provisions: Section 13(a)(1) Employees employed in executive, administrative, professional, or local retailing capacity, or as outside salesmen. The exemption for employees employed in a local retailing capacity is removed. An otherwise qualified employee of a retail or service establishment is not excluded from the exemption for bona fide executive and administrative employees so long as he spends less than 40 percent of his time in nonexecutive or nonadministrative work. Sections 13(a)(2)-13(a)(4) Employees employed by a retail or service establishment (as defined in the act). Changed to exclude establishments in newly covered enterprises, except that the present exemption continues for any such establishment having annual sales of less than $250,000. Employees of the following types of establishments are specifically excluded from the minimum wage and overtime provisions: Hotels, motels, restaurants, motion picture theaters and hospitals; schools for physically or mentally handicapped or gifted children; institutions which are primarily engaged in the care of the sick, aged, mentally ill or defective residing on the premises; amusement or recreational establishments operated on a seasonal basis. Section 13(a)(19) Employees of auto and farm implement Any employee of a retail or service dealers: no specific provisions. Such em- establishment primarily engaged in ployees are exempt if the establishment by which they are employed meets the requirements of section 13(a)(2). selling autos, trucks, or farm implements. Fair Labor Standards Act Prior to Fair Labor Standards Act as the 1961 Amendments Amended in 1961 EXEMPTIONS—Continued (b) Employees exempt from minimum wage and overtime provisions—Continued Section 13(a)(20) Food handlers: no specific provision. Any employee of an establishment which is engaged in the preparation and service of food is exempt if the establishment meets the requirements of section 13(a)(2). Employees of retail store lunch counters, certain caterers, and similar retail food services. Section 13(a)(3) Employees employed by laundries and No change. cleaning establishments (as defined in the act). Fair Labor Standards Act Prior to Fair Labor Standards Act as the 1961 Amendments Amended in 1961 EXEMPTIONS--Continued (b) Employees exempt from minimum wage and overtime provisions-Continued Section 13(a)(16) Employees employed in agriculture are Exempt from overtime; partially exempt exempt from both minimum wage and over- from minimum wage requirements. time requirements; employees actually handling livestock at auctions are exempt from overtime requirements. Workers engaged in both types of work in same workweek must be paid minimum wage for entire week. Other work in connection with a livestock auction is nonexempt and defeats both exemptions. Employees employed in agriculture even though they also perform certain livestock auction operations in which their employer is engaged as an adjunct to the raising of livestock. In order for the exemption to apply, the employee must be primarily employed in agri. culture and is required to be paid the applicable minimum wage for his work in connection with livestock auction operations. Section 13(a)(10) Employees engaged within the "area of The ginning of cotton is removed production" in specified operations involving the handling or processing of agricultural commodities for market. Workers who perform nonexempt work in addition to the operations named in section 13(a)(10) do not come within this exemption. from the scope of this exemption. A separate exemption is provided in section 13(a)(18) for any employee engaged in the ginning of cotton for mar. ket in any place of employment in a county where cotton is grown in commercial quantities. A new exemption is provided in section 13(a)(17) for any employee employed within the "area of production” by an establishment commonly recog. nized as a country elevator, including such an establishment which sells products and services used in the operation of a farm, provided that not more than five employees are employed in the establishment in such operations. Section 13(a)(7) Any employee to the extent that such employee is exempted by regulations or orders of the Secretary under section 14. No change. Section 13(a)(8) Employees of a weekly, semiweekly, or daily No change. newspaper with circulation of less than 4,000, primarily in county where printed and published or counties contiguous thereto. 253 Fair Labor Standards Act Prior to the 1961 Amendments Fair Labor Standards Act as EXEMPTIONS-Continued (b) Employees exempt from minimum wage and overtime provisions-Continued Section 13(2)(9) Employees of local electric railway, trolley, and motorbus carriers. Section Switchboard employees of public telephone exchanges with fewer than 750 stations. The exemption for employees of certain transit systems is limited to employees not in an enterprise described in the new coverage provisions. 13(a)(11) Exemption is limited to independently owned public telephone companies which have no more than 750 stations. |