# Appendix — Maryland v. Wirtz > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385001_1123%3A02 ## Record - **Collection:** Supreme Court brief - **Document type:** Appendix - **Published:** January 1, 1968 - **Citation:** 392 U.S. 183 ## Text ~ a AbtomioN eee Md, " 6 - . la > . APPENDIX A “OpINIoN or Court “= (Filed June 13, 1967) ‘In The United States District Court ‘eo the District of Maryland oe * | Civil ne No. 18005 ‘_,_--- "State of Maryland, et al., : ay | an Plaintiffs, oN v. “*) W. Willard Wirtz, Secretary of Labor United States Department - Labor, et al., — - a Before: Winter, Circuit Judge, Thomsen, Chief J — and Northrop, District Judge. WintTeER, Circuit Judge: - ‘This is an action brought by the State of Maryland, in ‘which twenty-five other States have interven parties plaintiff, asking the Court to ‘declare unconstitutional the 1966 Amendments to-the Fair Labor Standards Act! (the “1966 Amendments”) insofar as they, apply to employees of the plaintiff States, and to enjoin enforcement of the. Act, as amended, against the States. Although the 1966 Amendments extend the Act’s coverage to employees ‘of enterprises, whether public or private, engaged in the operation of schools, hospitals and related yinstitutions, “ - street, suburban or interurban electric railways, and local’ trolley and motorbus catriers, the States, in briefs and 1 Public Law, 89-601, 80 Stat. 830, ‘amending the Fair Labor a of 1938, 29 U.S.C.A. . $5201, et seq. + | % a oral- argument, challenge ‘iihieatice of the ‘Act “tie to public schools, hospitals and related institutions; and this _ Court will limit its consideration accordingly. Ae ai Defendants. ‘have filed a motion-to~dismiss or, in thé alternative, a motion for: summary judgment. .Plaintiffs have. filed cross-motions for'summary judgment. The par- ties have entered into extensive stipulations of fact with : regard to Maryland, Texas and Ohio. It is agreed that _ these data may be taken as representative of the situation © in the other plaintiff States. Some objections to relevancy and materiality have been raised, but the Court is satisfied that the conclusions reached herein would not be affected by the exclusion of any of the stipulation evidence. i INTRODUCTION The Fair Labor Standards Act, 29 U.S.C.A. 8§ 201, et seq., was first enacted in 1938 as a result of Congressional find- ings, recited in § 2(a) of the Act, 29 USCA. § 202, that: “the existence, in industries engaged in commercé or in the production of goods for commerce, of labor conditions detrimental to the maintenance of the minimum standards of-living necessary for health, efficiency, and general well-being of workers (1) © causes commerce and the channels and instrumentali- ties of commerce to be used to‘spread and perpetuate such laber conditions among the workers of the sev- eral States; (2) burdens 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. ~ It was therefore‘ declared to be the policy of Congres, , through the exercise of its power to regulate commerce among the several states “to.correct and as rapidly as practicable to eliminate the conditions above referred to in such industries. without, substantially curtailing employ- ments or earning power.” 29 U.S.C.A. § 202(b). Congress. JARS ‘ 3a accordingly provided that entployers must pay those em- ' pldyees who were “engaged in commerce or in the@*produc- - tion of goods for commerce” a minimum hourly wage, - 29 U.S.C.A. § 206(a), and one and one-half times their regular hourly rate for weekly hours over a specified maxi- - - mum, 29 U.S.C.A. § 207(a) (1). States and their political subdivisions were excluded from. the Ags definition “of “Employer.” 29 U.S.C:A. § 203(d). ‘The constitutionality of the original Act was snenned in United States -v. Darby, 312 U.S. 100 (1941). The Court stated, inter alia, that the power of Congress ove? commerce. “extends to those activities intrastate which so affect inter- _ ' State commerce or.the exercise of the power of Congress over it as.to make. regulation of them appropriate means to the attainment of a legitimate end, the exercise of the 4 granted power of Congress to regulate interstate /com- merce.” ‘Id., at.p. 118.2 4 The Act has been amended several times,? but until the 1966 Amendments state ee were not brought within its coverage. In 1961 the “enterprise” concept was introduced. 29 U.S.C.A. § 203(r), 75 Stat. 65.. In addition to employees previously covered.— those personally engaged in inter- ‘ state commerce or in the production of goods for commerce — the Act was extended to cover “the related, activities performed (either through unified operation er common * ~ 2Subsequent decisions have pointed ‘out that “Congress did not exercise in this Act the.éull stope of the gommerce power,” but rather chose “to regulate only part of what .* nerd Satie ra dee eiinitstinnidtanins Meta tenet toi : 7 Oren ed . . . + 2h oo 33a ‘Gi between federal and’ state sovereignty in n holding that the . statute unconstitufionally transgressed state sovereignty, but in doing so, it was careful to:state: “We are not con- cerned at this time with the applicable rule in situations. ° where the, central government is at liberty (as it is under the Commerce Clause when such-a purpose is disclosed). to exercise a power that is exclusive.as.well as paramount.” (Emphasis supplied.) Id., at p. 338. Thus, not only does the Hopkins case not constitute authority for the conten- tion urged by the States, but the care with which the Court delineated the problem before it strongly suggests -a con- trary result had the legislation been an exercise of the . power of Congress to regulate commerce. It is at most additional authority for the result I would each. The States, in the stipulations which be earlier men- tioned, have presented. extensive evidence to show the far- , reaching financial impact on them of the 1966 Amendments. The proof tends to show that the graduated financial bur- den, resulting from escalation. of the minimum wage and contraction of maximum hours without payment of over- time over a period of years, will necessitate either increased taxes or a curtailment of essential services. There is before us evidence that current budgetary appropriations will be insufficient to meet the increased costs resulting from the 1966 Amendments during the current fiscal period, and that in many instancés, politieal subdivisions, restricted by or- ganic law to maximum limits of taxation and borrowing, are currently operating at these maxima so that, absent grants-in-aid or an amendment of organic law, they will be required to curtail the amounts spent for ‘teachers, text books and the like, or reduce the number of people served, if they are required to comply with the 1966 Amendments. ’ As I said earlier, this data is not excluded on evidentiary principles. It is properly before us — if only to put flesh on the skeletal frame of this litigation. But, in the decision of the constitutional issues presented to us, it, and the arguments of unconstitutional impairment of state sover- eignty predicated upon it, are largely irrelevant. I have concluded that the 1966 Amendments are valid and ton- — stitutional, as is the enterprise concept of the 1961 Amend- . 4 ments, and that there is no eheemattbitionit impairment | of the sovereignty of the plaintiff States.. The financial impact of the 1966 Amendments on the States is an argu- ment to be addressed to Congress and not to the courts. ' As Chief Justice Marshall semerngively Away in Gibbons - . Ogden, 9 Wheat. 1 (1824): , ie has always been understood, the sovereignty of Congress, though limited to specified objects, is plenary as to those objects, the power over commerce | with foreign nations, and among the several States, is vested in Congress as absolutely as it would be in a single government, having in its constitution the same restrictions on the exercise of the power as are found in the constitution of the United. States. The wisdom and the discretion of Congress, their identity with the people, and the influence which their con-_. stituents possess at election, are, in this, as in many other instances, as that, for example, of declaring war, the sole restraints on which they have relied; to se- cure them from its abuse. They are the restraints on which the people must often rely solely, in all repre- sentative governments.” — — ) Id., at ‘?P. 197. 21 . Even more specific in stating the principle that the finan- cial impact’ of the 1966 Amendments .is no guide to their validity is Oklahoma ex rel Phillips v. Guy F. Atkinson Co., 313 U.S. 508 (1941). In that case, the federal govern- ment planned to flood certain lands belonging to Oklahoma. . ,The state sought an injunction, arguing, inter alia, that the project as planned would take much land unnecessarily, without. serving the purpose of the dam. The Court de- clared: “Such matters raise not constitutional.issues but ques- tions of policy. They relate to the wisdom, need, and 21 The: vitality of the principle announced has not been eroded by time. Heart of Atlanta Motel, Inc. v. United States, 379 U.S. 241, 255 (1964) ; Polish Alliance v. N.L.R.B., 322 U.S. 643, 650 (1944) ; ~ Oklahoma ex rel Phillips v. Guy F, Atkinson Co., 313 US. 508, 527- - - $28 ‘ 1941) ; Sanitary District v. United States, 266 U.S. 405, 432 _ (1925). effectiveness of’a particular project. They are, there- fore, questions for the Congress not the courts. * * * Nor is it for us to determine whether the resulting benefits to commerce as a result of this particular ex- ercise by Congress of the commerce power outweighs the costs of the undertaking.” (Emphasis supplied.) Id., at pp. 527-528. — To a further allegation that tax revenues of Oklahoma ~ would be diminishéd because of loss of property taxes qn the seized land, and the public education might be ham- pered because certain school buildings, on the condemned land, would have to be rebuilt elsewhere, the Court said: -£The possible adverse effect on the tax revenues of Oklahoma .as a result of the exercise by the federal government of its power of eminent domain is no bar- rier to the exercise of that ee: ”. (Emphasis — plied.) Id., at p. 534.22 e conclude that defendants’ motion tor summary iii ment should be granted, but in view of the fact that my conclusions are shared only in part by Chief Judge Thom- * sen, and not at all by Judge Northrop, counsel may present a form of decree declaring the minimum wage ‘provisions . of the 1966 Amendments valid and constitutional and deny- ing plaintiffs’ prayers for. injunctive relief. Harrison L. Worres, oo ‘ United States Circuit J udge. 22 Although not as explicit, several of the authorities discussed in the text support the rule that when the commerce power is exercised the test of validity of the exercise is not the cost to the States. In California v. Taylor, supra, the State was exposed to payment of the higher wages for state employees arrived af as a result of collective - bargaining rather than the scale prescribed by state fiat. The result of the decision in United States v. Ohio, supra, would be presumably to increase the state’s cost for wheat and flour supplies purchased from the market place rather than grown on the prison farm. In Case v. Bowles, supra, price controls on the sale of timber decreased school revenues so that services would have to be reduced or school taxes increased. The penalties exacted in United States'v. Ohio, supra, and United States v. California, supra, represented a diminu- tion of general state revenues otherwise available to support other state activities. , 36a _ THOMSEN, Chiet J jalge, concurring in sia c I agree’ with the conclusion reached by Judge Winter — that the injunction requested by plaintiff should be denied — but for somewhat different reasons and with one im- portant reservation. I agree that the operation of schools and hospitals by the several StateS"and their subdivisions affects interstate commerce to a_ substantial degree, whether or not. such operations themselves constitute in- terstate commerce, and that use of the “enterprise concept” does not itself render unconstitutional the 1966 Amend- - ments. to the Fair Labor Standards Act. The potential. Eleventh Amendment problems, suggested by. the States, © should be considered as they may arise in subsequent ac- tions against the several States. But I cannot agree that the power‘of the federal government to regulate essential sovereign functions of the States is absolute and unquali- fied, despite the broad language of the opinions cited by Judge Winter. When the thirteen sovereign States, adopted the Con- ‘stitution they gave up only part of their severeignty to the United States of America. The system created by. the '. Constitution was and is a federal system; the States are. not adininistrative divisions of a central government. For - reasons whith were reviewed ,by Judge Wisdom in United States v. Manning, W.D.,La., 215 F. Supp. 272 (1963), and are not disputed, the Tenth Amendment was adopted in . 4 . & ‘ 7} ° ‘ ° ° - ° . . e . ; . v railroad,’ a waterfront terminal® or the dominion which the federal. government has, “to the exclusion of the states,” over navigable waters of the United States.® ‘The opinions in some of those cases state the power of the federal government over interstate commerce in broad and unqualified terms, indicating that when Congress ex- ercises its power over interstate commerce, thewelfare or needs of the States need not even be considered. The broad language of the opinions must, however, be read in the context of the cases in which they were rendered. In none | oe. of those cases were the essential taxing and budgetary - E functions of the States so seriously affected as they are by the statute’ under consideration. We must heed the ad- _ monition in Gomillion v. Lightfoot, 364 t&S. 339, at 343- - : 344: “Particularly in dealing with claims under broad 4 provisions. of the Constitution, which derive content by an interpretative process of inclusion and exclusion, it is imperative that generalizations, based on and qualified by ‘the concrete situations that gave rise to them, must not be «eh out of context in ear aia of variant asia _ling facts. oes The question remains: Does the ‘idaiate of federalism, Nevertheless, I cannot say that the.1 minimum wage pro- visions interfere so unduly with the State’s performance of their indispensable sovereign functions as to make those provisions unconstitutional. It is of course true, as J udge Northrop points out, that the minimum wage provisions interfere with the budgetary function of the States. But that interference must be weighed against the interest of the federal government, representing all the people of the United States, in seeing that all the people ate paid an ap- propriate minimum wage. Serious problems are presented "4 the possible, application of the Act to work done by tes of correctional and other institutions: as employees compensatory time, or to make various other - budgetary arrangements to keep i in fair balance State jobs of the most diverse character. If the overtime provisions 16 29 U.S.C.A. 207(j) (1966 Cum. Supp.). + \ of the 1966 Amendments | are valid, many of* those arrange- ments may no longer be possible. The Act will seriously | .. hamper the orgahizational and budgetary functions of the States by forcing them to favor employees of their hospitals ~ and schools over other programs stich as welfare and law - enforcement, unless the States rearrange their entire civil service and appropriate additional sums for employees not ‘covered by. the Act. ’ For reasons stated above, I am satisf¥ed‘ that a line must be drawn, and that with respect to sogpe if not all state employees covered by the 1966 Amendments the overtime requirenients of the Act-probably go beyond the permis-' sible limits. The interference with the organizational and budgetary functions of the States has been noted. On the ‘other hand, Congress has not stated, and neither the com- © mittee. hearings nor the stipulated facts in this case show, what if any effect on interstate commerce the overtime _ practices of the several States may have. The issue in each instance is whether the particular regulation undzly inter- feres with one or more indispensable sovereign functions of the ‘State. This indicates that the question whether the - application of the overtime provisions of the statute to’ state employees goes beyond the permissible limits should be decidéd in the context, of particular cases, when the _. extent of the interference with an indispensable-state func- _ tion can be weighed against the effect, if any, which the State’s overtime practices have en commerce.17 17 At the on of . this case the Solicitor’ ‘of Labor argued for all of the defendants. He rsd asked from the Bench whether and "* where a line should be d Without conceding that any line should be. drawn in this ail without withdrawing from his - . | oo on a position that the plenary power of the federal government: over . ‘interstate commerce applies to the States as well as to individuals, the | Solicitor suggested : “* * * we have such a variety of situations ‘that it may not be the, path of wisdom to try to issue any blanket rule [to cover] the variety of different situations demonstrated [by the stipulacions with respect to] Maryland, Ohio and Texas, and which can be assumed to exist in a-multipticity of cases throughout the - fifty states.” Tr. p. 193. The Solicitor concluded “that this is not ' . the ge mye place and case for blanket injunctions or orders b nket basis so far as | the application of this rule to schools _ Pg - I conclude that a sweeping ‘tijunetion at this time would not -be Proper. ; s #4 The denial of relief in this case chin be. bain preju- dice to the right of the several States and their political subdivisions to challenge the overtfme provisions of th. °° Act applicable to employees of the States and their political subdivisidhs, in pte casés 8. presenting _— situations. NORTHROP, District Judge, dissenting : I am compelled to dissent from the conclusions: reached by Judge Winter and Judge Thomsen that this Act is not unconstitutional. . -The majority recognizes that this is a case of first | im- pression involving a conflict between Congress’ powér under the Commerce Clause and state isi tit as recognized _ in our Constitution. a ae ‘ . Judge Winter concludes, -that the: power of Congress under the Commerce Clause has no boundaries:and Con- gessional preemption in this field is supreme, it mattering not*that it would destroy the constitutionally recognized sovereignty of the states. To put it.simply, he holds that from the beginning federalism, as embodied in our Con- stitution, existed by the will of Congress rather than_by the will of the people. No case has gone that far. It is sup- ported neither by history nor by the structure of the - Constitution. .° . 2 . In his concurring opinion, Jedes Thomsen recognizes that there is implicit within the concept of federalism em- bodied in, the Constitution a limitation ‘on the power of and hospitals are concerned. Instead, it would seem most appropriate if such a new line were conceived and fashioned, if it should be, that _ . the concept and the fashioning of it should not be for this Court, but by the Supreme Court m any later proceédings, or perhaps, as -I have suggested several times before, it should be done as cases - actually come up in the future and action is taken where we cah get a full exposure of all of the different facts and facets on issues © — that may well be ee at that future time.” Tre PP. 204, 205. on eS ’ bo ho em . . POE ALO ERLE HRS ROT LBP EMME IRE NEY TIE EE TIS IS SSS ORD ay ate ON Oe . ‘ ‘ . . f : ‘ Congress under the Commerce Clause. However, he feels that the minimum wage provisions of the Act as they affect the states do not transgress the limitation imposed by ‘the Constitution upon Congress. But he expresses serious doubts as to the constitutionality of the overtime provision of the Act as it affects the states. Nevertheless he concludes — _ that question is not yet ripe for adjudication. As to it, he would wait until the Department of Labor promulgates and applies its regulations to the states and decide constitution- ality on a case-by-case basis. Although I agree with J udge Thomsen’ . ND the \ pertinent cases and some of his reasoning as to the effect of the amendment on the states, I cannot agree. with, his conclusions. Unless the Department of Labor emasculates the Act, there will be no way for this or some other court to avoid the constitutional question posed herein. The question before us is whether this Congressional | - exercise of power under the Commerce Clause constitutes an undue infringement upon the “performance of [the state’s] function as a government which the Constitution . ~ recognizes as sovereign.” ™. | , . _ This quotation is from Chief Justice Stone’ S opinion in New York v. United States, 326 U.S. 572, at 588, 66 S. Ct. 310, at 317, in reference to the limits on the taxing power . of Congress. Although it is recognized that the power — under the Commerce Clause may be broader, it must have some limits. The language of Chief Justice Stone — such a limitation. We are concerned here with the: se between national and state government gstablished by our Constitution. This concept of federalj fully preserved throughout our history by the courts, not by exhorting the Congress on the one hand or the state legislatures on the\other to restrain their actions so as not to trespass on the rights, ee and duties of the other. I cannot agree that it is a political question for the.state to importune the Congress not to raise the salaries of . -« has . been .care- © CA REESE e 47a ., State employees, thus forcing .the state legislature to tax its people to. pay those employees. This is a direct trans- -. gression on the concept of federalism, whith must be deter- mined by the courts. The case. before us is a perfect ex- ample of the wisdom of Constitutional rather than‘Con-.’ gressional federalism. The amendment, through which the _ states are subjected to the Fair Labor Standards Act, was. - enacted without notice to the states so that‘ they might be heard and without any thought being ‘given to the effect © of the Act on them. Surely the statement of one-Congress- man, even in the committee. of the whole, did not alert the states, or constitute a Congressional finding,.or give this - Act a purpose as applied to the states as the majority would wish. [Note 10, Judge Winter’s -: opinion.] This case then brings into confrontation the powers of Congress under the Commerce Clause with the concept of dual -sovereignty-or-federalism-as embodied in our Con- stitution, which is articulated in the Tenth Amendment. ' The effect of this Act must be measured. against the Constitution precisely and its impact cannot be softened by what regulation a department of the national government might promulgate in its application. . ; What then is its effect on the state government? | By this Act Congress is forcing unger threat of civil liability and criminal penalties, the state legislature or the responsible political ' subdivision of the state * ‘1. to increase taxes (an impossibility in some of the political subdivisions without a state constitutional amend- genre os ae Se ; 2: to curtail the extent and calibre of services in the public hospitals and educational and related institutions of the state; or Sie 3. to reduce indispensable services in other governmental activities to meet the budgets of those activitigs favored - by the United States Congress; or 4. to refrain from entering new fields of governmental ‘ sti necessitated by changing social conditions. ¢ The allocation of the state’s revenue among government a activities is the most important ‘function .of ‘state govern- ment, for it determines the extent and calibre of service. 4 . which a state can ‘supply. State governments must provide , } $ services out of current tax funds. Thé state government or pee its political subdivisions are particularly sensitive to the 2 of the people and their ability to pay for the in-° - dis nsable governmental functions that must be furnished. , The budget is, therefore, under constant study. by: both © the executive and legislative branches of the state’s govern- © -ment. Not only does the appropriation bill demand the highest consideration of the legislature while it is in ses- sion, but it also requires most of the attention of the ex“ ecutive and the interim legislative committees - between '. Sessions.*: ' There is we so’ much revenue available. ‘The wise — allocation of this money démands this constant up-to-the- - * minute knowledge of state and local governmental officials — \* intimately concerned with the requirements and priorities ' to be allotted among the health, welfare, education, law enforcement, urban, pollution, and other demanding gov: _ernmental functions, each of substantial importance. The states’ Congressional delegations neither have the time, nor — knowledge, nor is it their function to ‘become involved in -_. -the-vitak details of state fiscal ‘policy. . Perhaps all of the above can be expressed more ares: ‘cally by a recent news story in the Baltimore Sun, which undoubtedly is. repeated bundreds of times . _ACTOSS — the nation: “Tt-is budget time again in Sinise County. . “What particularly worries the commissioners is that | the school ° budget [the largest expenditure of the be * For alae. consider the reports of the Maryland General As- . sembly’ s Committee on Taxdtion and Fiscal Affairs from 1955 to date, the Maryland Legislative Council’s Report for any year and countless other such documents reflecting the prodigioys amount of time and effort put forth by state officials to supply governmental services. These documents may be found in the Archives of the Council of State ne. id , . county government} has gone t up.on an average of 22 per cent each year while the taxable income goes _ up. only 15 per cent and assessments only 9 per cent.” The Evening Sun (Baltimore), April 6, 1967.. The impact of a mandatory allocation: of stute-collected revenues by Congress among the indispensable state governmental services is thus readily demonstrated. It amounts to the national government rompelling state - government action and controlling and Gperating the state government with little or no. knowledge of the require- ments of its citizens or the financial ss of those citizens to pay the bill. ‘The Congress, under the theory of this Act, hi tinuten. ) late state governments by increasing - the state functions to come under the “enterprise” concept or removing - exemptions for classes of state employees at will without notice te the state, and’ all at the expense of the state. This Act'is thus an intrusion of first magnitude ‘into the | functioning of state government now, is _potentially with- ’ out limif, and carries with it. the formula for the ne destruc: \, tion. of the concept*of federalism. Congress has heretofore carefully avoided interjecting the national power into state or local governmental func- tions. Although grants-in-aid and ‘matching funds might have that effect, these have a contractual basis — a far cry from mandatory direction. This Congressional reluc- tance in and of itself: indicates a recognition of the Cén- stifutional principle of federalism. The careful nurturing of the. concept of federalism has come to fruition since World War II in the increasing initiative of the states) i in meeting new problems brought about by the great social changes in our nation. The " ‘momentous “Metropolitan Problem” has caused the crea- tion of new forms-~of local governmept in: many of the’ affected areas. The wisdom of locah/administration has been clearly demonstrated. We are seeing many more govenmental activities being undertaken by the federal . and state governments on a eagnees partnership basis ie, 6, >A © 3 ‘ ; - ? & © + : . t 50a © ‘directed at solving our internal pectin. In light of the ' above examples of voluntary movement toward national . .. and state partnership, rather than compulsion, it would -, indeed be tragic at this point in history to expand and .. si broaden the power of the federal government over the State governments in the exercise of their necessary govern- mental functions under the guise of the “Commerce Clause” to a point never heretofore reached by any deci ‘sion. To substitute now the delayed and ponderous action . - of a remote central government aaa atrophy and stifle this progress. Alexis de Tocqueville i in his Democracy in America said it in this — ; “cannot conceive that a nation can. live and prosper without a powerful centralization of govern- ment. But I am of the opinion’that a centralized administration ‘is fit only to. enervate the nations in: which it-exists, by incessantly diminishing their lacal spirit. Although such an administration, can bring together at a given moment, on a given point, all the _. . disposable ‘resources of.a people, it injures the renewal * of those resources. It may insure'a victory in the hour _ of strife, but it gradually relaxes the sinews of strength. ~ It may help admirably the transient greatness: of a ‘man, but not the durable prosperity of a nation.” Vol. I, pp. 86-87 tank Mia New York, 1946).. Thus, the limitation upon’ ‘a power, whith’ ne been | delegated ‘to the federal government —_ intluding the power to regulate commerce among the States — and eae _ ‘deals with the internal ‘affairs of this nation, is re when Congress exercises that power so as to interfere | unduly in some manner with the state’s performance of an © indispensable governmerital activity. The Act as applied - to employees of public. schools, hospitals, and related. ° _ institutions is unconstitutional - ‘because it is an undue infringement upon the performance of an indispensable and fundamental governmental function (its taxing and — budgetary function) of the state, which the Constitution recognizes as sovereign. os . ee > ° : . 5la an The proof of the wisdom of the federal concept is implicit in the name of our government — the “United States”. It - cannot be said more succinctly. @ ee (Filed June 26, 1967) This cause having come on for final argument and the parties having agreed to present this case for final decision on a stipulated record; and the plaintiffs th their complaints having: prayefi for a declaratory judgment and a prelimi- nary and permanent injunction; and the court having received argument and briefs fronr the parties; now there- fore, this 26th day of June, 1967, it ig | OrpERED, ADsUDGED AND DECREED: Pky: ee . ' Plaintiffs’ motion for summary judgment and prayers — for interlocutory and permanent injunctive relief are denied for the. reasons set forth in the opinions of the . Court. : Accordingly, this action is dismissed, ‘without costs .to. either party. Mer | ‘ | _/s/ Harrison L. WinTER, aay . ) Circuit Judge. | \ /s/ Roszex C. ‘THOMSEN, “District Judge. "52a: | APPENDIX B aie Text OF Farr Lasor Stanparps Act As AMENDED IN 1966 Act of June 25, 1938, as amended by Fair Labor Standards Amendments of 1949 (Public Law 393, 81st Congress), effective January 25, 1950, and by Fair Labor Standards . Amendments of 1955 (Public Law 381, Chapter 867, 84th _ Congress, 1st Session), approved August 12, 1955, further. . amended by H.R. 7458 (Public Law 85231, 85th Congress,. ‘1st Session), approved Atigust 30, 1957, effective November 28, 1957; amended by P.L. 85-750, approved August 25, * 1958; by the Judicial Review Act, P.L. 85-791, approved August 28, 1958; by the Fair Labor Standards Amendinents of 1961, P.L. 87-30, approved May 5, 1961, effective. Septem- ber 3, 1961; by the Equal Pay Act of 1963, approved June 10, 1963, effective June 11, 1964, and by P.L. 89-601, ap- — proved September 23, 1966, effective February 1, 1967. Annotations in brackets show aceand made by amend- ments. 1. Title. 2. Finding and declaration of pay. ..°3. Definitions. 4. Administrator. 5 . Industry committees for Puerto Rico sad the Virgin Islands; 6. Minimum wages. - 7. Maximum hours. - 8. Wage orders. ‘9. Attendance of witnesses. 10. Court review. : 11. Investigations, inspections, and records, 12. Child labor provisions. 13. Exemptions. — 14. Learners, apprentices, and handicapped workers. 15. Prohibited acts. i) ERR a wie eh ee ral si , ws - 53a 16. Penalties. 17. Injunction proceedings. 18.. Relations to other Jaws. . 19. Separability of provisions. a. Dan act To PROviDE FOR THE ESTABLISHMENT OF Farr Lasor STANDy ARDS IN EMPLOYMENT IN AND AFFECTING. 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, Sec. 1. That this Act may be cited as the “Fair Sabor | Standards Act of 1938.” _ FINDINGs -AND DECLARATION or Po.icy Sec..2. (a) The Congress hereby finds that the existence, in industries’ engaged in ‘commerce or in the production of goods for comrherce, 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 in- strumentalities of commerce to be used to spread and perpetuate such labor conditions among the workers of the several States; (2) burdens 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 niarketing of goods in: commerce. (b) It is hereby declired to be the policy of this Act, through the exercise by Congress of its power to regulate commerce . among’ the several States and with foreign — nations, to correct and.as rapidly as practicable toeliminate . the conditions above referréd to.in such industries without ‘substantially’ cugfailing employment or earning power. '[Sec. 2 of P. L. 81-893, effective Jan. 25, 1950, added the words “and with foreign nations” i in’ the fifth line of subsection oe above) — EONS Ra § ee Tepe arngnnen cers — OP oe SELL EN NS RT Ss Po as - 4 , * © 5 ’ ee . - - Oe penn a | Dermvrrions: oN : Sec. 3. As used in this Act— mo Meter wie. | (a)-“Person” means an individual, partnership, a associa- . tion, corporation, business trust, legal represéntative, or, ‘any organized group of persons. E | *, ‘(b) “Commerce” means trade, commerce, transporta- tion, transmission, or communication among the several States or between any State and any place outside thereof. . . [The concluding words “between any State and any’ place outside thereof’ were substituted by Section, 3(a) of P. L. 81-393, effective Jan. 25, 1950, for the original words “arodh any State to. titel place outside thereof. ee ‘(ey “State” 1 means. any State of the United States or mone _ District of Columbia or any Territory or possession of the. United States. (d) “Employer” includes any shinai acting divectty or _ indirectly in the interest of an employer in relation to an *“ employee but shall not include the United States or any “State or: political subdivision of a State (except with ‘re-’ spect to employees of a State, or a political subdivision thereof, employed (1). in a hospital, institution, ‘or school referred to in the last sentence of subsection (r) of this ‘section, or (2) in the operation of a railway or carrier . referred to in such sentence), or any labor organization (other than. when acting as an employer), or anyone act- ' ing ‘in. the capacity of officer \or agent. of — labor — i organization. | a, ' | Section 3(d) was aniadis by P. . 89-601, ‘effective Ta Feb. 1, 1967, by inserting after “of geo yell the phrase ae . beginning “(except with Pe ee ending “such + *» sentence)”. = | _- (e) “Employee” includes any sindtobibenl employed by an , employer, except that such term shall not,.for the purposes ' of sectiqgn 3( u) include— , vy” / j f° ILO, OOO EE ras ds escaninads PE LEE ERP EL El POP LOSES BANE AE per es > po te y eM om a — - — ae al , . ” : . 2 Vara 9 top ERs enn” fey = y ? ° ROB HR ore rer anne rpr iy THOR aad PER OLL , 7 ~ LOO BOE BIRR TE 55a v tel (1) any individual employed by an tiatiaaia en- - gaged in agriculture if such individual is the parent, . spouse, child, or other member of the employer’s immediate family, or fe] (2) any individual who i is jiainaieel, by. an pra ae engaged in agriculture if such individual (A) is employed as a hand harvest laborer-and is paid on a piece rate basis" in an operation which has been, and is customarily and generally recognized as having been paid on a piece rate basis in the region of e#{ployment, (B) commutes daily from his permaneépt residence to the farm on which he ‘is so employed, and (C) has been employed in agriculture less than thirteen weeks during the preceding calendar year. [Section 3(e) was amended by P. L. 89-601, effective Feb. 1, 1967, to add the — provided in para- graphs (1) and (2).] Bh (£)-“Agriculture” includes farming in all its sei and among other things includes the cultivation and tillage -of the soil, dairying, the production, ¢ultivation, growing, and harvesting of any agricultural or horticultural com- -modities (including commodities defined as agricultural ' commodities in section 15 (g) of the Agricultural Market- ing.Act, as amended), the raising of livestock, bees, fur- bearing animals, or poultry, and any practices (including any forestry, or lumbering operations) performed by a - fariuer or on a farm as an incident to or in conjunction with ~ sueh farming operations, including. preparation for market, delivery to storage or to market or to carriers for trans- porte ion to market. (g). “Employ” includes to. ole or pactnlt to wool: (h) “Industry” means a trade} business, industry, or branch thereof, or group of industries, in which individuals are gainfully employed. . (i¥ “Goods” means goods (including ships and marine. equipment), wares, products, commodities, merchandise, or articles or subjects of. commerce of any character, or any ~ . part or cians thereof, but does not include ‘goods after their delivery into the actual physical possession - of the ultimate consumer thereof other than a producer, manu- — facturer, or processor thereof. (j) “Produced” means prdduced, manufactured, mined, handled, or in any other manner worked on in any State; and for the purposes of -this Act an employee shall be deemed to have been engaged in the production of goods - if such employee was employed in producing, manufactur- ing, mining, handling, transporting, or in any other manner working on such goods, or in any closely related process or occupation — essential ‘to the production thereof, . _in any State. — | 4 [Section 3(b) of P. L. 81-393, effective Jan. 25, 1950, inserted, before the word “process” ‘in the third line . ‘from the end of this subsection, the words “closely: related.” In addition, after the word “occupation” in the same line, it deleted ‘the word “necessary” and. substituted the words “directly essential.” The last: portion of the subsection had previously read: “dr in © any process or occupation, necessary to the —s thereof, in any State.”] ae ; (ic) “Sale” or “sell” includes any ial: exchange, con- tract to sell, consignment for sale, shipment for sale, or other disposition. — (1) “Oppressive child labor” means a condition of em- ployment under which (1) any employee under the age of sixteen years is employed by an employer (other than a parent or a person standing in place. of a parent em- ploying his own child or a child in his custody under the age of ‘sixteen years in an occupation other than manufacturing or mining or an occupation found by the — Secretary of Labor to be particularly hazardous for the employment of children between the ages of sixteen and eighteen years or detrimental to their health or well-being) in any occupation, or (2) any employee between the ages _ of sixteen and eighteen years is employed by anemployer_ - in any occupation which the Secretary of Labor shall find _ ° Ie NA OO IEIOE LO SONAL VEE SLABS, VIG No 8 OE ie Fl ond by ‘eter parr to Lie perticaliety hazardous pie the employment of children between such ages er detrimental to their health or well-being; but oppressive child labor shall not be deemed to exist by virtue of the employment in any occupation. of any person with respect to whom the employer shall have on file an unexpired certificate issued ‘ and held pursuant to regulations | of the Secretary of. Labor certifying that such person is above the oppressive child- labor age. The Secretary of Labor shall provide by regu- lation or by order ‘that the employment of employees between the ages of fourteen and ‘sixteen yéars in occupa- tions other than manufacturing and mining shall not be deemed to constitute oppressive child labor if and to thé exterit that the Secretary of Labor determines:that such - employment i is confined to periods which will not interfere with their schooling and to conditions which will not interfere with their health and well-being. [Section 3(c) of P. L. 81-393, effective Jan. 25, 1950, added the language inthe last part of the parentheses * which occurs in lines 5 to 16 in subsection (1) above. The language is: “or an occupation found by. the Secretary. of Labor to be particularly hazardous for the employment of children between the ages of six- . teen afd eighteen years or r detrimental to their health or well-bejng”) - | (m) “Wage” paid to any selected includes the reason- - | able. cost, _as determined by .the Administrator, to the employer of furnishing such employ€e with board, lodging, ar other facilities, if such board, lodging, or other facilities gre customarily furnished by such employer to his em- ° ployees: Provided, That the cost of board, lodging, or other facilities shall not be included as a part ‘of the wage paid to any employee to. the extent it is: excluded therefrom - under the terms of a bona fide collective-bargaining agree- ment applicable to the particular employee: Provided . further, That the Secretary is authorized to determine the ‘fair value of such board, lodging, or other facilities for defined classes of employees and in defined areas, based on average cost te the employer or to groups of employers : €2) @uring, the period February .1, 1967, ‘ene January 31, 1969, is an enterprise whose annual gross . _ volume of sales made or business done is not less than - $500,000 (exclusive of excise taxes at the retail level ou which are separately stated) or is a gasoline servite * establishment ‘whose @nnual. gross volume of sales is not less ,than $250,000 (exclusive of éxcise taxes at the retail level which are separately stated), and be- ginning February 1, 1969, is an enterprise whose an- —— a rBey a 61a. \ - nual gross’ volume. of sales made or business done is. —Hot less than $250,000 (exclusive of excise taxes at the retail level which are separately stated; (2) is engaged in laundering, cleaning, ig repairing clothing or fabrics; (3) is engaged in the business of construction or reconstruction, or both; or - (4) is engaged in the operation of.a hospital, an * institution primarily engaged in the care of the sick, the aged, the mentally ill or defective who reside on the premises of such institution, a school for mentally or physically -handicapped or gifted children, an ele- mentary or secondary school, or an institution of - higher education (fegardless of whether or not. such hospital, institution, or school is public or private or. a operated for profit or not for profit). Any establishment which has as its only regular employee _ -the owneg thereof or the parent, spouse, child, or other member of the immediate family of such owner shall not ‘be considered to be an enterprise engaged in commerce or _ in the production of goods for commerce or a paft of such - an enterprise, and the sales of such establishment shall not be included for the purpose of determining the annual gross volume of sales of any ee for the purpose of ~ this subsection. [Section 3 was ‘amendedl-to add subsections { p), (q), (r), and 6s) by the Fair Labor Statidards Amend-’ ments of 1961 approved May 5, 1961, effective Se 3, 1961. Section 3(s) was’ amended by P.L. 89-601, effective Feb. 1, 1967, to substitute virtually entirely new language. Prior to the amendment, meee: 3(s) read as follows: | (s) “Enterprise engaged i in commerce or in the pro- duction. of goods for commerce” means any of. the — following in the activities of which’employees are so engaged, including employees handling, selling, or ~ otherwise working on goods that have been moved in — or produced for commerce by ‘any person: La * or € ? 62a, “~ % “(1) any such enterprise ‘whieh has one or more retail or service establishments if the annual gross volurne of sales of such egterprise’is not less than ~ $1,000,000, exclusive of excise taxes at the retail level which are separately stated and if such enterprise purchases or receives goods for resale’ that move or have moved across State lines (not in deliveries from . the-reselling establishment) which amount in total annual volume to $250,000 or more; ’ _ “(2) any such enterprise which is animal in the business of aperating a street, suburban or interurban electric railway, or local ‘trolley or motorbus carrier if the annual gross. volume of sales of such enterprise ° _ is not less than $1,Q00,000, exclusive of excise- taxes at the retail level which are separately stated; - “(3) any establishment of any such enterprise ¢ ex- cept establishments and enterprises referred to in. other paragraphs of this subsection, which has em-. _ployees engaged in commerce or in tie production of goods for commerce if the annual gross volume of sales of such enterprise is not less than $1,000,000; “(4) any such enterprise which is ‘engaged in the - business of construction or reconstruction, or ‘both, if the annual gross volume from the business of such ~~ enterprise is not less than $350,000; “(5) any gasoline service esta ishm nt if the an- nual gross volume of sales of suc blishment is not less than $250,000, exclusive of &xcisés taxes at the retail level which are separately stated: “s “Provided, That:an.establishment shall nat_be eon- - sidered to be an enterprise engaged in commerce or __in the production of goods for commerce, #r ‘a part of an enterprise engaged in commerce or in the pro- duction of goods for commerce, and the sales of such establishment shall not be included for the purpose of - determining the annual gross. volume of sales of any enterprise for the purpose of this: subsection, if the only employees of such establishment are the owner 7 2 . © © + ployee performs any aepleerel labor for not less than - we thereof : or persons standing in the relationship of . parent, spouse, or child of such owner.?] » (t) “Tipped employee” means any employee engaged in an occupation in which he customarily And negeaesy © re- ceives more than $20 a month in tips. (u) “Man-day” means any day during which an em- one hour. (v) “Elementary school” means a day, or ‘residential school which provided elementary education, as determined under State law. (w) “Secondary school” means a day or ‘residential school which provides mentee education, as determined - under State law. [Section 3. was ennnied by P.L. 89-601, effective Feb. 1, 1967, to add subsections (t), (u), (v), and (w).] _ADMINISTRATOR Sec. 4. (a) There is hereby created in the Department of Labor a Wage and Hour Division. which shall be under ‘the direction of an’Administrator to be known as the Ad-: | ministrator of the Wage and. Hour Division (in this Act referred to as the “Administrator”). The Administrator shall be appointed by the President, by and with the advice and consent of the Senate, and shall : receive. compensation at the rate of $26,000 a year. ‘[Section 4 of P. L. 81-393 effective Jan. 25, 1950, sub- stituted “$15,000” in the last line of the subsection .. above for “$10,000” in the original statute. The salary then was raised to _— and’ in: 1964 to er by P. L. 88-426.] (b) The Administrator may, subject to the civil-service a — appoint such employees as he deems necessary to carry out his functions and duties. under this Act and shall ix their compensation in accordance with the Classification Act. of 1923, as amended. _ an ace meee ‘ Cia may establish and utilize such regional, local or other agen- cies, and utilize such voluntary and uncompensated. serv- -ices, as may from time to time be needed. Attorneys ap- pointed under this section may a pear for and represent | | ‘the Administrator in any litigation, but all such litigation .Shall be subject to the direction and control of the Attorney- General. In the appointment, selection, classification and promotion of officers and employees of the Administrator, ‘no political test or qualification shall be permitted or given: _ consideration, but all such appointments and promotions shall be given and made on the basis of merit and efficiency. (c) The principal office of the Administrator shall be in the District of Columbia, but he or his daily authorized representative may exercise sed or all of his powers i in id place. (d) The Admtateeeter shall submit annually i in J anuary . a report to the Congress covering his activities for the - preceding year and including such information, data, and recommendations for further legislation in connection with the matters covered by this Act as he may find. advisable. Such report shall contain an evaluation and appraisal by - the Secretary of the minimum wages established by this Act, together with his recommendations to the Congress. In making such evaluation and appraisal, the Secretary shall take into consideration any changes which may have occurred in the cost of living ard in productivity and the level of wages in manufacturing, the ability of employers to absorb wage increases, and such other factors as he may deem pertinent. . [Sec. 4(d) was amended by Sec. 2 of the Fair Labor Standards Amendments of 1955, effective August 12, 1955, to add the. last two sentences. ] 7. Investigations of Effects on Employment, of Foreign Com- petition . (e) Whenever the Secretary has reason to believe that in any industry under this Act the competition of foreign. producers in United States markets or in markets abroad, | - or both, has resulted, or is likely to result, in increased + LARGO PEPER LE OLE ELON VENI ES IE BEA IE AEP Se OLE AS AES 65a ~ unemployment in the United States, he shall undertake an ‘investigation to gain full information with respect to the matter. If he determines such: increased unemployment — has in fact resulted, or is in fact likely to result, from such . competition, he shall make a full and tomplete report of his findings d determinations to the President and to the Con : Provided, That he may also include in such re- port ¢nformation on the increased employment resulting from additional exports in any industry under this Act as. he may déterminé to be pertinent to such report. [Sec, 4 was amended to add subsection (e) ‘by the Fair Labor Standards Amendments of 1961, approved May 5, 1961, effective Sept. 3, 1961.] . ' SpEcraL INDUSTRY ComMrrrezs FOR Puerto Rico . AND VIRGIN ISLANDS Sec. 5. (a) The Administrator shall as soon as practicable appoint a special industry committee to recommend the minimum rate or rates of wages'to be paid under section 6 to employees in Puerto Rico) or the Virgin Islands, engaged. in commerce or in the production of goods for commerce, — or employed in any enterprise engaged in commetce or in the production of goods for commerée, or the Adminis- trator may y appoint separate industry committees to recom- mend the minimum rate or rates of wages to be paid: under ‘section 6 to employees therein engaged in commerce or in the production of goads for commerce or employed in any enterprise engaged in commerce or in the production: of _. goods for commerce in particular industries. An industry . committee ‘appointed under this subsection shall be com- posed of residents of such island er islands where the em- ‘ployees with respect’ to whom'such committee was ap- pointed are employed and gree of the United States outside of Puerto Rico and the, Virgin Islands. \In deter- ; mining the minimum rate or rates of wages to be paid, '’ ‘afd in détermining classifications, such industry‘ commit-_ tees shall be subject to the provisions of section 8. [Sectién 5(a) was amended by the Fair Labor | Stand- — _ ards Amendments of 1961 approved May 5, 1961, effec- 66a. tive September 3, 1961, to insert after the words “pro-. duction of goods for commerce” wherever they appear the. phrase “or employed in any enterprise. engaged in commerce or in the production of goods for com- merce.”’] . / ; - ! es / " [Sec. 5(a) was amended by. Sec. 5(a)’ of the Fair _ , Labor Standards Amendments of 1955, effective August 12, 1955, by striking out “and the administrator” in the last sentence. The sentence previously read: “In determining the minimum rate or rates of wages to be paid, and imdetermining classifications, such industry committee” and the Administrator shall be subject to the provisions of section 8.] cS : (b) An industry.committee shall be appojnted by the Administrator without regard to any other provisions of law regarding the appointment and compensation of em- _ ployees of the United States. It shall include a number of disinterested persons representing the public, one of whom. the Administrator shall designate as chairman, a like num- ' ber of persons representing employees in the industry, and a like number representing employers in the industry. - Inthe appointment of the persohs representing each group, ‘ ° the Administrator shall give due regard to the geographical regions in which the industry is carried on. [This subsection was reenacted by Section 5 of P: L. _81393-effective Jan. 25,1950.) . | (c) Two-thirds of the members of ‘an indjtstry com- mittee shall constitute a quorum, and the decision of the committee shall require a vote of not less than a majority of all its members. Members of an industry committee shall receive as compensation for their services. a reason- able per diem, which the Administrator shall by rules and ' regulations prescribe, for each day actually spent in the _ work of the committee, and shall in addition be reimbursed for their necessary traveling and other expenses. The Ad- ministrator shall furnish the committee with adequate legal, stenographic, clerical, and other assistance, and shall _@ 67a by rules and vintiattdinn prescribe the Procedure to be followed by the committee. ; [This‘subsection was reenacted by Section 5 of P. / : 81-393 effective Jan. 25, 1950.) | “(a) The Administrator shall submit to an sabi com- mittee from time to time such data as he may have avail- able onthe matters referred to it, and shall cause to be brought before it in connectionjwith such matters any ‘witnesses whom he deems material. An industry commit- tee may summon other witnesses or call upon the Adminis- trator to furnish additional information to aid it in its deliberations. . na [Section 5 of P. L. 81-393 ellective Jan. 25, 1950, reenacted the above subsection. It also deleted a sub- - section (e) which read as-follows: “(e) No industry committee appointed under sub- - section (a) of this section shall have any power to | recommend the minimum rate or rates of wages to be id under section 6 to any employees in Puerto Rico ‘. or in the Virgin Tslande Notwithstanding any other provision of tltis Act the.Administrator may appoint . @ special industry committee to recommend the mini- mum rate or rates of wages to be: paid under section 6 to all. employees in Puerto Rico or the Virgin Islands, . or in Puerto Rico and the. Virgin Islands, engaged in ‘ commerce or in the production of goods for commerce, ~ or the Administrator may. appoint separate industry committees to recommended the minimum rate or _rates of wages to be paid under section 6 to employees therein engaged in commerce or in the production of goods for commerce in particular industries. An in- _dustry committee appointed under ° this. subsection shall be composed of residents of such island or islands where the employees with respect to whom such ‘ committee was appointed are employed and residents ~ of the United States outside of Puerto Rico and the Virgin Islands. In determining the minimum rate or rates of wages to be paid, and in determining classifi- og. {eee a & cations, such industry .committees ind the Adminis- trator shall be subject to the provisions of section 8 and no such committee shall recommend, nor shall-the . _ Administrator approve, a minimum wage rate which will give any industry in Puerto Rico or in the Virgin Islands a competitive advantage over any industry in the United States outside of Puerto Rico and the Virgin Islands. : - “No wage orders iinet by the dilantin pur- _ : suant to the recommendations of an industry commit- . tee made prior to the enactment of this joint resolution’. i. -pursuant to séction 8 of the Fair Labor Standards Act of 1938 shall after such enactment be applicable with ‘respect to any employees engaged. in commerce or in: ° the production of goods for commerce in Puerto Rico or the Virgin Islands.”]. . , | 6 Minimum _—— Sec. 6. (a) Every employer shall pay to. each of his employees who if any workweek is engaged i in commerce « _ or in the production of goods for commerce, or is employed _in an enterprise engaged in commerce or in the production of goods for commerce, wages at the following rates: (1) not less than $1.40 an hour-during.the first year from . the effective date of the Fair Labor Standards Amend- - - ments of 1966-and not less than $1.60 an hour thereafter, oe "except as otherwise provided in this section; [Sections 6(a) and 6(a) (1) were amended by P PL 89-601, effective Feb., = 1967, by. deleting all existing - material and inserting in its place the new material —s “Every employer shall . . .” and ending . provided in this section;” Sec. 6(a) (1) previously ~° was amended by the Fair Labor Standards Amend- — ments of 196% approved May 5, 1961, effective Sept. 3, 1961, to raise the minimum from $1.00 an hour to $1.15 on Sept. 3, 1961, and to $1.25 in 1963.” The $1-an- - hour minimum was incorporated into the law by Sec.’ 3 of the Fair Labor Standards Amendments of 1955, — siaall 12, 1955, and made effective March 1, a & «69a 1956. This mfnirnum superseded an hourly minimum of. 75 cents. * * , : 2 ; Previously, Sec? 6(a) of P. L. 81-393, effective Jan. 25, 1950, substituted “75 cents an hour” for the follow- -.ing four subparagraphs in the original statute. _ “(1) during the first year from the effective-date of this section, not less than 25 cents an hour. “(2) during the next six years from such date, not less than 30 cents an, hour. ‘¢ “(3) after the expiration of seven years from such ' daté, not less than 40 cents an hour, or the rate (not . ~ less than 30 cents an hour) prescribed in the appli- cable order of the Administrator issued under section 8, whichever is lower, and . | | _ “(4) at any time after the effective date of this sec- tion, not less than the rate (not in excess of 40 cents. an hour) prescribed in the applicable —_ of the Ad-. ministrator issued under section 8.”] (2) if such employee is on worker in Puerto ‘Rico yy or the Virgin Islands, not less than the minimum piece ’ rate’prescribed by regulation or order; or, if no such mini- mum piece rate is in effect, any piece rate adopted’by such ° employer which, shall‘yield, to the proportion or class ‘of * employees préscribed by regulation or order,.not less than the applicable minimum hourly wage rate. Such minimum piece rates or employer piece rates shall be commensurate with, and shall be paid-in lieu of, the minimum hourly wage rate applicable under the provisions of this section. The Administrator, or his authorized representative, shall have power to make such regulations or’ orders as are necessary or appropriate to carry out any of the provisions of this: paragraph, including the power, without limiting the generality of the foregoing, to define any operation or occupation which is performed by such home work em- ployees in Puerto Rico or thé Virgin Islands; to establish minimum piece rates for any operation or occupation ‘so * . defined; to- prescribe the methods and procedure for, ascer- - 70a ‘taining and promulgating minimum piece rates; to pre- scribe standards for employer piece rates, including the proportion or class of employees who shall receive not ‘less than the minimum hourly wage rate; to define the _ term “home worker”; and to prescribe the. conditions under ‘which employers, agents, contractors, and subcontractors shall cause goods to be produced by home workers. | [The above subparagraph, unchanged from the orig- inal law, was renumbered as “(2)” 4#y Section “oe? of P. L. 81-393, effective Jan. 25, 1950.) ce ag (3) if ‘such employee is employed in American Samoa, in lieu of the rate or rates provided. by this subsection ‘or subsection (b), not less than the applicable rate. estab- . lished by the Secretary of Labor in accordance with recom- — ‘ mendations of a special industry committee or committees which he shall appoint i in the same manner and pursuant to the same provisions as are applicable to the special in- 24 dustry committees provided for Puerto Rico and the Virgin Islands by this Act as amended from time to time. Each - such committee shall have the same powers and duties and: — shall apply the same standards with. respect to the appli- cation of the provisions of this Act to employees employed ~ in American Samoa as pertain to special industry commit- tees established under section 5. with respect to employees ; employed in Puerto Rico or the Virgin Islands. The mini- © - mut. wage rate thus establishéd shall not exceed the rates ‘prescribed in paragraph (1) of this subsection; (4) if such employee is employed as a seargan on an’ — - American vessel, not less than the rate which will provide - to the employee, for. the period covered by the wage pay- ’ ment, wages equal to compensation at the hourly rate pre- scribed by paragraph (1) of this subsection for all hours. during such period when he was actually’on duty (includ- ing periods aboard ship when the employee was on watch or. was, at the direction of a superior officer, performing work ‘or standing by, but not-including off-duty periods — which are mun — to the eatin sah agree- ment); or “Ta . (5). if oul employee is employed i in agriculture, not less than $1 an hour during the first year from the effective. date of the Fair Labor Standards Amendments of 1966, not less- than $1.15 an hour during the second year from such date, and not less than $1.30 an hour thereafter. [Sec. 6(a)(3) was added by ‘amenidment approved _ August 8, 1956 (Public Law 1023, Ch. 1035, S. 3956. The subsection was further amended by the Fair Labor Standards Amendments of 1961 to substitute _ the first sentence for the following: “if such ernployee is employed in American Samoa, at less than the ap- plicable rate established by the Secretary of Labor in accordance with recommendations of a special indus- orn try committee or committees which he shall appoint in the same manner and nage to the same provi- sions as are now applicéble to the special industry committees provided for Puerto Rico and the Virgin Islands by this Act.” This section was further amended : by P. 1z,89-601, effective Feb. 1, 1967, by changing the . period at the end of the preceding paragraph to)a semi- colon and adding paragraph (or. (b) Every employer shall pay to each of his émployees — “(other than’: an employee to whom ‘subsection (a) (5) applies) who in any workweek is engaged in commerce or in the production of goods for commerce, ors employed in an erfterprise engaged in commerce or in the ‘production of goods for commerce, and who in sach workweek is brought within the purview of this section by the.amend- ments make to this Act by the Fair Labor Standards Amendments of 1966, wages at th following rates: (1) not less than $1 an hour during the first yout "from the effective date. of such amendments, . _ (2) not less than $1.15 an hour during the second year from such date, | (3) not less than $1.30 an hour during the third year from such —, (4) not less than $1.45 an ie during the fourth year from such date, and ( 5) not less than $1. 60. an hour thereafter. © ~ [Section 6( b) was amended by P. L. 89-601, effective Feb. 1, 1967, by deleting all existing. material and in- serting in its place the new material beginning “Every employer shall. . .” and ending with subsection 6(b) (5). Prior. to the ‘amendment, Section 6(b) read as follows: - “(b) Every pourra shall pay to each of his em- ployees who in any workweek (i) is employed. in an enterprise engaged in commerce or in the production _ of goods for commerce, as defined in section 3(s) (1), . (2), or (4) or by an establishment described in section 3(s)(3) or (5), and who, except for the enactment of the Fair Labor.Standards Amendments of 1961, would - not be within the. purview of this section, or (ii). is brought within the purview of this section by the amendments made to section 13(a) of this Act by the ' Fair Labor Standards Amendments of 1961, wages at rates— “(1) not less than $1 an hour ae the first three "years from the effective date of such amendments;. not ‘less than $1.15 an hour during the fourth year from such date; and not less than the rate effective under paragraph (1) of subsection (a) thereafter; — oa “(2) if such employee is employed as a seaman on. ‘an’ American vessel, not less than the rate which will _ provide. to the employee, for the period covered by ‘the wage payment, wages equal to compensation at the hourly rate prescribed by paragraph (1) of this subsection for all hours during such period when he © ‘ was actually on duty (including periods aboard ship __ when the employee was on watch or was, at the di- ~- ~ rection of a superior officer, performing work or stand- ing by, but not including off-duty periods which are _, provided pursuant to the employment agreement).”] 73a - (c)(1) The rate or rates provided by subsections (a) and (b) of this section shall be superseded in the case of any employee in Puerto Rico or the Virgin Islands. only for so long as and insofar as such employee is covered by. a wage order heretofore or hereafter issued by the Secre- tary pursuant to the recommendations of a special indus- try committee appointed pursuant to section 5.. (2) In the case of any such employee who is covered by such a wage order and to whom the rate or rates prescribed - by-subsection (a) would: otherwise apply, the ane ; rates shall apply: _ (A) The rate or rates ‘cities under the most recent wage order issued by the Secretary prior to the effective date of the Fair Labor Standards Amendments of 1966, Rocreased by 12 per centum, unless such rate or’ rates are superseded by the rate or rates prescribed in a wage order issued by the Secretary pursuant to the recommendations of a review committee appointed under paragraph (C). Such rate or rates shall become effective sixty days after the effective dafe of the Fair Labor Standards Amendments of 1966 or one year from the effective date of the most recent wage order applicable to such employee theretoforé issued by the Secretary pursuant to the recommendations ofa special industry committee appointed under section 5, - whichever is later. (B) .Beginning one year after the applicable effective date under paragraph (A), not less than the rate or rates | prescribed by paragraph (A), increased by an amount equal to 16 per centum of the rate or: ‘es applicable under ‘the most recent wage order issued by the Secretary prior . - to the effective date of the Fair Labor Standards Amend- ments of 1966, unless such rate or rates are superseded by _ the rate or'rates prescribed in a wage order issued by the secretary pursuant to the recommendations of -a review committee appointed under paragraph (C). - (C) Any employer, or group of employers, employing a majority of the employees in an industry. in. Puerto Rico or the Virgin Islands, may apply to the Secretary in writing for the appointment of a review committee to recommend 74a the minimum rate or rates to be paid such employees in” lieu of the rate or rates provided by paragraph (A) or | (B). Any such application with respect to any rate‘or | rates provided for under paragraph (A) shall be filed with- in sixty days following the enactment of the Fair Labor ' Standards Amendments of 1966 and any :such application _ with respect to any rate or rates provided for under para- graph (B) shall be filed not more thfn one hundred and twenty days and not less than sixty days prior to the effective date of the applicable rate or rates under para- graph (B). The Secretary shall promptly consider. such application and may appoint a review committee if he has. pe gare cause to believe, on the basis of financial and information ‘contained in the application, that com- ‘ oases with any applicable rate or rates prescribed by paragraph (A) or (B) will substantially curtail employ- ment in such industry. The Secretary’s decision. upon any such application shall be final. Any wage order issued pur- suant to the recommendations of a review committee dap- pointed under this paragraph shall take effect on the appli- cable effective date provided i in paragraph (A) or (B). ‘ (D) In the event a wage order has not been issued pur- suant to the recommendation of.a review committee prior to the applicable effective date under paragraph (A) or ' -(B), the applicable percentage increase provided by any such paragraph shall take effect on the effective date pre- scribed therein, except with respect to- the employees of an employer who filed an application under paragraph (C) and who files with the Secretary an undertaking wit surety or surefies satisfactory to the Secre ‘for Apay- ment to his employees of-an amount sufficient to compen- sate such employees for the difference between the wages they actually receive and the wages to which they are entitled under this subsection. The Secretary shall be em- powered to enforce such undertaking and any sums re- covered. by him shall be held in a special deposit account _ and shall be paid, on order of the Secretary, directly to . the employee or employees affected. Any such sum. not paid to an employee because of inability to do.so within a period of three years shall be covered into the Treasury of the United States as miscellaneous receipts. RAMA IED SIOIFS NGL TY Pet OEY DIM 8 AE ee MOR A 7a (3) In.the case of any such employee to whom subsection (a)(5) or subsection (b) would otherwise apply, the Sec- retary shall within sixty days, after the effective date of the Fair Labor Standards Amendments of 1966 appoint a special industry | com:nittee in accordance with section 5 to recommend the highest minimum wage rate or rates in accordance with the standards prescribed by section 8, but not in excess-of the applicable rate provided by subsection (a)(5) or subsection (b), to’ be applicable to such em- _ ployee in lieu of the rate or rates prescribed by subsection .. (a)(5) or subsection (b), as the case may be. The rate - or rates recommended by the special industry committee _ shall be effective with respect to such employee upon the effective date of the wage order issued pursuant to such recommendation but not before sixty days after the ef- * fective date of the Fair Labor Standards Amendments of 1966. (4) The provisions of section 5 and section 8, relating to special industry committees, shall be applicable to re- view committees appointed under this subsection. The appointment of a review committee shall be in addition to and not in lieu of any special industry committee required to be appointed pursuant to the provisions of subsection (a) of section 8, except that no special industry committee shall hold any hearing within one year after a minimum ~ wage rate or rates for such industry shall have been: recommended: to the Secretary by a review. committee to a be paid in lieu of the rate or rates provided | fob under para- graph (A) or (B). The minimum wage rate or rates pre- ‘scribed by this subsection shall be in effect only for so long as and insofar as such minimum wage rate er rates have not been superseded by a wage order fixing a ‘higher minimum wage rate or rates (but not in excess of the applicable rate prescribed in subsection (a) or subsection (b)) hereafter issued by the Secretary pursuant to the recommendation of a special industry committee. _ [Section 6(c) was amended by: P.L. 81-609, effective Feb. 1, 1967, by deleting all existing material and — inserting 6(c) (1) through (4)] in its place. Prior to the amendment it read as follows: | ¢ ‘ 0 gC Ne ee ntoew eee - —* See PO ORO TEY ORE TE, Gh ON PRET Ce Xs 7 76a ¢ | " “(c) The rate or rates provided by subsections (a) | and (b) of this section shall be superseded in the case of any employee in Puerto Rico or the Virgin Islands z only for so long as and insofar ‘as such employee is covered by a wage order heretofore or hereafter is- sued by the Secretary pursuant to the recommenda- tions of a special industry committee appointed pur- suant to section 5: Provided, That (1) the following - rates shall apply to any such employee to whom the rate or rates prescribed by subsection (a) would otherwise. apply: “(A) The rate or rates ghee mider the most -Yecent wage order issued. by the Secretary prior to the effective date of the Fair Labor Standards Amend- ments of 1961, increased by 15 per centum, unless such rate or rates are superseded by the rate or rates pre- scribed in a wage order issued by the Secretary pursuant to the recommendations of a review com- mittee appointed under paragraph (C). Such rate, or rates shall become effective sixty days after the effec- tive date of the Fair Labor Standards Amendments of © 1961 or one year from the effective date of the most recent wage order applicable to such employee there- ‘tofore issued by the Secretary’ pursuant to the recom- mendations of a special industry committee appointed under section 5, whichever ‘is later. . “(B) Beginning two years after the applicable ef- fective date under paragraph (A), not less than the rate or rates prescribed by. paragraph (A), increased _by an amount equal to 10 per centum of the rate or rates applicable under the most recent wage order issued by the Secretary prior to the effective date of . . the Fair Labor Standards Amendments of 1961, unless ‘ such rate or rates are superseded by the rate or rate prescribed in a wage order issuéd by the Secretary pursuant to the recommendations of a review com- _ mittee appointed under paragraph (C). “(C) Any employer, or group of employers, em- ploying a majority of the employees in an industry in os Ls SRS ATES HS PMA OR A Puerto Rico or the Virgin Islands, may apply to the Secretary in writing for the appointment of a review _ committee to recommend the minimum rate or rates to be paid such employees in lieu of the rate or rates - provided by paragraph (A) or (B). Any such applica- tion with respect to any rate or rates provided for ~ under paragraph (A) shall be filed within sixty days following the enactment of the Fair Labor Standards Amendments of 1961 and any such application with -respect to any rate or rates provided for under para- graph (B) shall be filed not more than-one hundred . and twenty days and not less than sixty days prior to the effective date of the applicable rate or rates under paragraph (B). The Secretary shall promptly con- sider such application and may appoint a review com- mittee if he has reasonable caus believe, on the basis of financial and ‘other information contained in the application, the compliance with any applicable rate or rates prescribed by pargarph (A) or (B) will substantially curtail employment in such industry. The Secretary’s decision upon any such application shall be final. Any wage order issued pursuant to the recommendations of a' review committee appointed un- — der this paragraph shall také effect on the applicable effective date provided in paragraph (A) or (B). “(D) In the event a wage order has not been issued pursuant to the recommendation of a review. commit- tee prior to the applicable effective date under para- | 2 graph (A) or (B), the applicable percentage increase provided by any such paragraph shall take effect on the effective date prescribed therein, except with re- spect to the employees of an employer who filed an application under paragraph (C) and who files with the Secretary an undertaking with a surety or sureties . satisfactory to the Secretary for payment to his em- ployees of an amount sufficient to compensate such employees for the difference between the wages they actually ‘receive and the wages to which they are entitled under this subsection. The Secretary shall be empowered to enforce such undertaking and any sums __ "Ba recovered by him shall be’held in a special deposit account and shall be paid, on order of the Secretary, — directly to the employee or employees affected. Any such sum not paid to an employee becalise of inability to do so within a period of three years shall be covered AT into the Treasury of the United States as miscel- | ; + laneous receipts. “(2) In the case of any such employee to whom sub- section (b) would otherwise apply, the Secretary shall within ‘sixty days after the enactment of the Fair Labor Standards Amendments of 1961 appoirit a spe- _ cial industry committee in accordance with section 5 to recommend the highest minimum wage: rate or rates in accordance with the standards prescribed by section 8, not in excess of the applicable rate provided — by subsection (b), to be applicable to such employee _ ~ “ in lieu of the rate or rates prescribed by subsection ~ (b). The rate or rates recommended by the special “industry committee shall be effective with respect to © -™.such employee upon the effective date’ of the wage “Grder issued pursuant to such recommendation but not | beforé-sixty days after the effective date of: the Fair Labor Standards Amendments of 1961, “(3) The provisions of section 5 and section 8, re- lating to special industry committees, shall be appli- cable to review committees appointed under this sub- section. Thé appointment of a review committee shall be in addition to and not in lieu of any special industry . committee required to be appointed pursuant to the provisions of subsection (a) of section 8 except that no special industry committee shall hold any hearing © within one year after a minimum wage rate or rates for such industry shall have been recommended to the - Secretary by a review committee to be paid in lieu of the rate or rates provided for under paragraph (A) or (B). The.-minimum wage rate’ or rates prescribed . by this subsection shall be in effect only for so. long as and insofar ‘as such minimum wage rate or rates . have not been superseded by a wage order fixing a _ higher mininium wage rate or rates (but,not-in ex- Ny t Pee Pegs We aw ah . oe . 9a cess s of the applicable rate prescribed in snltiaielinn (a) or subsection (b)) hereafter issued by the Secretary a —- to the recommendation of a —— industry commit [Section 6c) was nail to read'as above by the Fair Labor Standards Amendments of 1961, approved May 5, 1961, effective — 3, 1961. The section | previously stated: “(c) The provisions of paragraph (1) of sub- section (a) of this section shall be superseded in. the case of any employee in Puerto Rico or the - Virgin Islands engaged in commerce or in the pro- duction of goods for commerce only for So long as and in so far as such employee is covered by a wage order heretofore or hereafter issued by the Administrator pursuant to the recommendations of'a special industry committee appointed pursu- ant to section 5: Provided, That the wage order in effect prior to the effective date of this Act for any _ industry in Puerto Rico or the Virgin: Islands shall - apply to every employee in such industry covered by subsection (a) of this section until superseded by a wage order hereafter issued pursuant to the recommendations of a special industry committee appointed pursuant to section 5.”] - (d) (1) No. émployer having employees subject.to any provisions of this section shall discriminate, within any establishment in which such employees are employed be- tween employees. on the basis of sex by paying wages to employees in such establishment at a rate less than the rate at which he pays wages to employees of the opposite — sex in such establishment for equal work on jobs the per- _ formance of which requires equal skill, effort, and responsi- bility, and which. are performed under similar working conditions, except where such payment is made pursuant to (i) a seniority system; (ii) a merit system; (iii) a sys- tem which measures earnings by quantity or quality of production; or (iv) a differential based on any other factor other than sex: Provided, That an ns who is paying x | a 80a a wage rate differential i in violation of this subsection shall not, in order te comply with the provisions of .this sub- section, reduce the wage rate of any employee. (2) ‘No labor organization, .or its agents, representing | } employees of an employer having employees subject to any - provisions ‘of this section shall cause or attempt to cause - Such an employer to discriminate against an employee in: » violation of paragraph (1) of this subsection. . (3) For purposes of administration and enforcement, any amounts owing to any employee which have been withheld _ in violation of this subsection s be deemed to be un- paid minimum wages or unpaid overtime compensation. under this Act. (4) As used in this subsection, the term ‘labor organiza- - tion’ means any organization of any kind, or any agency or employee representation committee or plan, in which em- . ployees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning _ grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work. [Section 6(d) was added by the Equal Pay Act of ' ©1963, approved June 10, 1963, effective June 11, 1964. Section 4 of this Act reads as follows: “Sec. 4. The argendments made by this Act shall take effect upon the expiration of one: year’ from: the daté of its enactment: Provided, that in the ' case of employees covered by a bona fide collective bargaining agreement in effect at least thirty days prior to the date of enactment of this Act, entered into by a labor organization .(as defined in section 6(d)(4): of the.Fair Labor Standards Act of 1938, as amended), the amendments made by this Act ~ "shall take effect upon the termination of such col- lective bargaining agreement or upon the expira- - tion of two years from the date of enactment of « this Act, whichever shall first occur.”] a (1) Notwithstanding the grovidiiine of section 13 of Act (except stibsections - (a) (1) ,and (f) thereof), SS 8la every employer providing any contract services (other . than linen supply services) under ‘ contract with the United States or any subcontract thereunder shall pay to each of his employees whose rate of pay is not governed by the Service Contract Act of 1965 (41 U.S.C. 351-357) or to whom subsection (a) (1) of this section i is not applicable, wages at rates not less than the rates provided for in sub- section (b) of this section. (2) Notwithstanding the provisions section 13 of this - Act (except Subsections (a)(1) and (f) thereof) and the provisions of the Service Contract Act of 1965, every em- ployer in an establishment providing linen supply services to the United States under a contract with the United States or any subcontract thereunder shall pay to each of- his employees in such establishment wages at rates not less than those prescribed in subsection (b), except that if _more than 50 per centum of the.gross annual dollar volume of sales made or business done by such establishment is derived from providing such linen supply ‘services under any such contracts or subcontracts, such employer shall. . pay to each of his employees in such establishment wages _ ‘at rates not less than those prescribed in subsection (a) (1) of this section. *[Section 6 was sama by P. L. 89-601 effective Feb. 1, 1967, to add- subsection (e).] eh snttnmivas Hours ‘See. 7 (a)(1) Except as otherwise provided in this sec- tion, nod employer shall employ any of his employees who in any workweek is engaged in commerce or in the produc- tion of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for. commerce, for a workweek longer’ than forty hours unless such emp receives compensation for his employmient in excess 6f the hours above specified at-a rate not less than one and one-half times the regular rate at which he is employed. (2) No employer shall employ any of his employees who in any workweek is engaged in commerce or in the produc- > oe ) ae tion of goods for commerce, or is employed in an enterprise ‘engaged in commerce or in the production, of goods for “commerce, and who in such workweek is brought within the purview of this subsection by the amendments made to ‘this Act by. the Fair Labor Standards Amendments of. 1966— : (A) for a srashinveslt sities than forty-four hours during the first year from ‘the effective date of the Fair Labor Standards Amendments of 1966, (B) for a workweek longer than forty-two hours during the second year from such date, or (C) for a workweek’ longer than forty hours after . the expiration of the second year from such date, unless such employee receives compensation for his em- ployment in excess of the hours above specified at a rate not less than one’ and one-half times the a rate at which he is. employed. [Section 7(a) was amended by P.L. 81-609, effective . Feb. 1, 1967, by deleting all existing material and inserting 7(a)(1) through 7{a)(2)(C) in its place. Prior to the amendment it read as follows:' ’ , “Sec. 7. (a)(1) Except as otherwise provided in ‘ this section, no employer shall employ any of his em- ployees who i in any workweek is engaged in commerce or in the production of goods for commerce for a © workweek longer than forty hours, unless such em- ployee. receives compensation for his employment in - excess ef the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed; and : “(2) Noemployer shall employ any of his employees _who in any workweek (i) is employed in an enter- prise engaged in commerce or -in the production of ‘goods for commerce, as defined in section 3(s) (1) or (4), or by an establishment described in section 3(s) (3), and who, except for the enactment of the Fair Labor Standards Amendments of 1961, would not be ms. within the purview of this subsection, or (ii) is brought within the purview of this subsection .by the amend- ments made to section 13 of this Act by the Fair Labor Standards Amendments of 1961— “(A) for a workweek longer than. forty-four hours during the third year from the effective date of the Fair Labor Standards Amendments of 1961, “(B). for.a workweek longer than forty-two_ hours ‘during the fourth year fron such date, “(C) for a workweek longer than forty hours after the expiration of the fourth year-from such date, | 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 employed. _ [Section 7(a) previously was amended by the: Fair ' Labor Standards Amendments of 1961, approved May . 5, 1961, effective September 3, 1961, by designating . the subsection “(a)(1)”, by inserting after the word “who” the words.“in any workweek” and by striking out the period at the end and ins a semicolon ‘and the word “arid” and by adding the above. Previously the subsection read “Sec. 7. (a) Except as otherwise provided in this section,.no employer shall employ any of his - employees who is ehgaged in commerce or in the _ production of goods for commerce for a workweek longer than forty hours, unless such employee _ receives compensation for his employment in ex- cess of the hours above specified at a rate not less than one and one-half times = — rate at which he is employed.”] € (b) No employer shall be deemed to. have violated a subsection (a) by employing any employee for a workweek - -- in excess of that specified in such subsection without paying the compensation for, overtime employment pre- | scribed therein if'such employee is so employed— 84a (1) in pursuance of an agreement, made as a result of - - collective bargaining by representatives of employees certi- fied as bona fide by the National Labor Relations Board, _ which provides that no employee shall be employed more than one thousand and forty hours during any see of . twenty-six consecutive weeks; or (2) in pursuance of an agreement, thade as a sient of collective bargaining by representatives of employees certi- fied as bona fide by the National Labor Relations Board, which provides that during a specified period: of fifty-two consecutive weeks the employee shall be employed not -more than two thousand two hundred and forty hours: and shall be guaranteed not less than one thousand eight hundred and forty hours: (or not less than forty-six weeks . at the normal number of hours worked per week, but not ‘less than thirty hours per week) and not more than two © thousand and eighty hours of employment ‘for which he shall receive compensation for all hours guaranteed or worked .at rates not less than those applicable under the agreement to the work performed and for all hours in excess of the guaranty which- are also in excess of the maximum workweek applicable to such employee under - subsection (a) or two thousand and eighty in such period at rates not less. than one and one-half times the regular rate at which he is employed; or ~ , [Section 7(b) was amended by the Fair Labor Standards Amendments of 1961, approyed May 5, - 1961, effective September 3, 1961, by striking out “in excess of’ forty hours in the workweek” in paragraph (2) and inserting the phrase “in excess of the maxi- mum workweek applicable to such employee under subsection (a).’’] ao * [In the fifth line of subparagraph (1) of this sub- . section, Section 7 of P. L. 81-393, effective Jan. 25, 1950, substituted “one thousand and forty” for “one thou- _ sand.” It also substituted new language in subpara- graph (2). The latter eis eee in the amy Act read as follows: te Be 85a “(2) on an annual basis in pursuance of an agree- _ ment with his employer, made as a result of collective bargaining by representatives of employees certified as bona fide by the National Labor Relations Board, which provides that the employees shall not be em- ployed more than two thousand and eighty. hours _ during any period of fifty-two consecutive weeks. “J (3) by ari independently owned and cointaailied local enterprise (including an eniterprise with more than one _ bulk storage establishment) engaged in the wholesale or bulk distribution of petroleum products er: . (A) the annual gross volume of sales of | such enter- prise is less than $1,000,000. exclusive of excise taxes, . ‘(B) more than: 75 per centum of. such enterprise’s annual dollar volume of sales ‘is made within the State in which such enterprise is located, and (C). not more than 25 per centum of the annual dollar volume of sales of such enterprise is to cus- tomers who are engaged in the bulk distribution of such products for resale. , ° - and such employee receives compensation for employ- ment in excess of forty hours ih any workweek at a — rate not less than one and one-half times the mihimum wage rate applicable to him under section 6, ' and if such employee receives corhpensation for employ- ment in excess of twelve hours in any workday, or for employment i in excess-of fifty-six hours in any workweek, as the case may be, at a rate not less than one and one-half times the regular rate at which he is employed. [Section 7(b) (3) was amended by PLL. 89-601, effec- tive Feb. 1, 1967, to delete the existing paragraph and replaces it with the new Section 7(b)(3). Prior to. the amendment, the paragraph dealt with the exemp- tion for seasonal industries, which was revised and incorporated in Section 7 (c) below, and Tead as follows: | 86a “(3) fora period or periods of not more than four- _ teen workweeks in the aggregate in any calendar year in an industry found by the Administrator to be of a seasonal nature, - And if such employee receives compensation for em- ployment in -excess of twelve hours.in any workday, _or for employment in excess of fifty-six hours in‘ any workweek, as the case may be, at a rate not less than one and one-half times the regular rate at which he is _. - employ pe : A paragraph similar to the present Section 7(b) (3) _ previously appeared in Section 13(b) (10). | (c) Fora period or periods of not’ more than ten i once weeks in the aggregate in any calendar year, or fourteen -workweeks in the aggregate in the case of an employer . who does not qualify for the exemption in subsection (d) of this section, any employer may employ any. employee « for a workweek’ in excess of that specified in subsection ‘(a) without paying the compensation for overtime em- * ployment prescribed in such subsection if such employee (1) is empleyed by such employer in an industry found by the Secretary ‘to be ofa seasonal nature, and (2) re- ceiyes compensation for employment by” such employer in excess of ten hours in any ‘workday, or for employment . - by such employer in excess of fifty hours in any work- week, as the case may be, at a rate not less than one and: one-half times the gular rate at which ‘he is employed. (d) Fora peri _or periodmef not more than ten work- . weeks in fhe aggregate in any calendar year, or fourteen workweeks in the aggregate in the case of an employer ‘ who does not qualify for the exemption in subsection (c) of this ion, any employer may employ any employee for a workweek in excess of that specified in subsection .(a). without paying the compensation for overtime employment _ prescribed in such subsection, if such employee— (1) is employld by such employer in an enterprise which is in an industry found by the Secretary— A 9 _ 87a (A) to be characterized by marked annually: recurring seasonal peaks of-operation at the places of first marketing or first processing of agricultural or horticultural com- modities from ‘farms if such industry is engaged in the handling, packing, preparing, storing, first processing, or canning of any perishable agricultural or horton DS. 7 commodities in their raw or natural state, or he fing (B) to-be of a seasonal nature and engaged in “the” handling, packing, storing, preparing, first processing, or canning of. any perishable agricultural or horticultural commodities in their raw or natural state, and (2) receivés - compensation for employment by ‘aa - employer, in excess of ten hours in any workday, or for employment in excess of forty-eight’ hours in any work- week, as the case may be, at a rate not less than one and one-half times the regular rate at which he is employed. [Section 7(c) was amended and Section 7(d) .was added by P.L. 89-601, effective Feb, 1, 1967. The new paragraphs revise the seasonal-industry and _first- processing exemptions previously provided by Sec- tions 7(b)(3) and 7(c). Prior to the amendment, Section 7(c).read as. follows: ““(e) In the case‘of an employer engaged in the first - processing of milk, buttermilk, whey, skimmed milk, -or cream into dairy products, or in the ginning and ‘compressing of cotton, or in the processing of cotton- seed, or in the processing of sugar beets, sugar beet molasses, sugar-cane, or. maple ‘sap; into sugar (but not refined sugar) or into sirup, the provisions of subsection (a) shall not apply to his employees in any place of employment where he is so engaged; and in the case of an employer engaged in the- first pro- cessing of, or in canning or packing, perishable or . seasonable fresh fruits or vegetables, or in the first processing, within the area of production (as defined by the Administrator), of any agricultural or horti- cultural commodity during seasonal operations, or in handling, slaughtering, or dressing poultry or live- - stock, the provisions of subsection (a), during a period ° ra oe or efficiency; - other expenses, incurred by an employee in the furtherance 88a or ‘periods of .not more than fourteen workweeks in the aggregate in any calendar year, shall not apply _to his employees in any place of employment where he \is so engaged in.” — e addition of Section 7(d) required a redesigna- tion ‘of Sections 7(e), (f), (g), and. (h) below.] an employee is employed shall be deemed to include all remuneration for employment paid to, or on behalf of, the employee, but:shall not be deemed to include— (e) As wi in this section the “regular rate”: at which (1) sums paid as gifts; payments in the nature of gifts made at Christmas time or on other special occasions, as a reward for service, the. amounts of which are not measured by or dependent on hours worked, —. _ Le] (2) payments made for occasional peviids when no — work is performed>due to vacation, holiday, illness, failure of the employer to provide sufficient work, or other similar cause; reasonable payments for -traveling expenses, or of his employer’s interests and properly: reimbursable by the employer; and other similar payments to an employee which are not made as pe for his hours of employment; fe] (3) sums paid in recognition of services eatin during a given period if either, (a) both the fact that pay- ment is to be made and the amount of the payment are _.determined at the. sole discretion of the employer at or near the end of the period and not pursuant to any prior - contract, agreement, or promise causing the employee -ta- expect such payments regularly; or (b) the payments are . made pursuant to a bona fide profit-sharing plan or trust, or bona fide thrift or savings plan, meeting the ‘require- ments of the Administrator set forth in appropriate regu- | -. lations which he shall issue, having due regard, among - other relevant factors, to the extent to which the amounts paid to the.employee are determined. without regard to” . hours of work, production, or efficiency; or (c) the pay- . Me ere RT RN eter renervctse rere Teittare Bre OP eo ‘ ‘ > ° van ped \ 89a ments are talent fees (as such talent fees are defined andw.— delimited by regulations of the Administrator) paid to . , - performers, including announcers, on radio and television tg ' _- programs; ear .. [le] (4) contributions‘irrevocably made by an employer to a trustee or third person pursuant to a bona fide plan for providing old-age, retirement, life, accident, or health insurance or similar benefits for employees; fe] (5) extra compensation provided by a premium rate - ; paid for ‘certain hours worked ‘by the employee in: any. . day or workweek because such hours are hours worked in excess of eight in a day or in excess of the maximum. workweek applicable to such employee under subsection __ (a) or in excess of the employee’s normal working hours or regular working hours, as the case may be; [Subparagraph:7(e)(5) was amended by the Fair - Labor Standards Amendments of 1961, approved May ~ 5, 1961, effective September 3, 1961, by striking out ' . “forty in‘a workweek” and’ inserting the phrase “in excess of the maximum workweek applicable to such an employee under subsection (a).”] - [e] (6) extra compensation provided by a premium rate paid for work by the employee on Saturdays, Sundays, holidays, or regular days of rest, or on the sixth or seventh day of the workweek, where such premium rate is: not less than one and one-half times the rate established in good faith for like work performed in ‘on-overtime hours - on other days; or. [el] (7) extra compensation provided by a premium rate - paid to the employee, in pursuance of an applicable em- ployment contract or collective-bargaining agreement,*for . - work outside of the hours established in good faith by the contract or agreement as the basic, normal, or regular ‘ workday (not exceeding eight hours): or workweek (not’ exceeding the maximum workweek applicable to such em- ployee under subsection (a) ), where such premium rate is - not less than.one and one-half times the rate established in —— * ent (except an establishment or port erie 3(s) or such sincliitiimesMin an annual dollar volume of.’ - sales which is less than $250,000 (exclusive of excise taxes at the retail level which are separately. stated): [Section 13(a)(2) was amended. ‘by P.L. 89-601, effective Feb. 1, 1967, by deleting the first five para- graphs and inserting’ a new paragraph. Prior to the . mae the provisions read as follows:]. ~*~ | ' ‘ [a](2) any émployee employed by any retail _ or service establishment, more than 50 per centum ~ of which establishment’s annual ddllar volume of. . . salés of goods or services is made within the State ‘ -in which the establishment’ is located, if such ~ an establishment— | i) is not in an enterprise described in Section 3(s), or is is “(ii) is in such an enterprise and ‘is a-hotel, § motel, restaurant, or motion‘ picture theatre; or _ in an amusement or recreational establishment that operates on a seasonal basis, or “ (iii). is in such an enterprise and is a hospital, ‘or an institution. which is primarily engaged in | the care of the sick, the aged, the mentally ill or defective, residing on the premises of such in-° = stitution, or a school. for physical or — ; handicapped or gifted children, or (iv). is in such an enterprise and has an annual dollar volume of sales (exclusive of excise taxes at the retail leyel which are separately stated) — which is less than $260,000.” [Section 13(a)(9) below provides an exemption © — to that provided in the deleted paragraph (ii).] lishment 7 centum of whose annual dollar volume of sales of goods ér services (or of both) is not for resale and’ is recognized ag retail sales or servicés in the —. — or : -A “rota o r service ditebRelimen ” shall mean an.estab- t 106a fad (3) any- employee employed by an establishment which is an amusement or recreational establishment, if (A) it does not operate for more than seven months in any © calendar year, or (B) during the preceding calendar year, its average receipts for any six months of such year were . . not more-than 3314 per centum of its average receipts for the other six months. of such years; opr + [Section 13(a) (3), which provided an ‘exemption for laundries and dry cleatiing’ establishments, was _, .Yepealed by P.L. 89-601, effective Feb. 1, 1967, and the ‘new paragraph dealing ‘with amusement or recrea- tional establishments inserted in its place. The laundry and dry cleaning exemption was incorporated in Sec- tion 13(a) (2) above. Prior to the amendments, Section 13(a) (3) read:as follows: | ae [a] (3). any employee lacie be any establish- ment engaged, in laundering, cleaning or repairing ° ‘ clothing or fabrics, more than 50 per centum of which. - establishment’s annual dollar volume of sales of such services is made within the State in’ which the estab- lishment is located: Provided, That 75 per centum of such establishment’s annual dollar volume of sales of such services is made to customers who are not engaged in a mining; ‘manufacturing, transportation, ae communication business; or” [a] (4) any. employee employed by an establishment which qualifies as an exempt retail establishment under _ clause (2) of this subsection and is’ ‘recognized as a retail - establishment in ‘the particular industry notwithstanding that such establishment makes or processes at the retail establishment the goods that it’sells: Provided, That more than 85 per centum of such establishment’s annual dollar volume of sales of goods so’ made or processed is made within the State ig which the establishment is located; or [Subparagraphs (2), (3), and(4), as they read prior to the 1961 and 1966 ‘amendments, were inserted by Section 11 P. L. 81-393,. effective Jan. 25, 1950, in place’ of the former subparagraph (2), which read as follows: POE WE ROR T= SO Tare - v , &. 2 -107a “(2) any employee engaged in any: retail or service establishment. the greater part of whose selling or servicing is in intrastate commerce.”] . en | ; [a] (5) any employee employed in the catching, taking, propagating, -harvesting, cultivating, or farming of any kind of fish, shellfish, crustacea, sponges, seaweeds, or other aquatic forms of animal and vegetable life, or in the - first progessing, canning or packing such ; ‘marine products at sea as an incident to, or in conjunction with, such fishing operations, including the going te and returning frem work and. loading and a when er by any such nae: or [Section 13(a) (5). was ensinhihed to read as above by*the Fair“Labor Standards Amendments: of 1961, approved May 5, 1961, effective September 3, 1961. The section previously stated: “(a)(5) any employee employed in the. catch- ing, taking, harvesting, cultivating, or farming of - any kind of fish, shellfish, crustacea, sponges, sea- -. weeds, or other aquatic forms of animal and vegetable life, i Ncluding the going to and return- ing from work and including employment im the loading, unloading, or packing: of such products for shipment or in propagating, processing (other ‘than canning), marketing, freezing, curing, stor- ing, or distributing. the above _— or by- products thereof; or” Section 11 of PLL. 81-393, effective Jan. 95, 1950, added “(other than canning)” after the word “pro-- cessing”. in the above text and deleted the word “canning” which, in the original statute, ouurene after the word or o [al (6) any employee employed ‘in agriculture (A) if such ,employée is employed by an employer who did not, durihg any calendar quarter during the preceding calendar year, use more than five hundred man-days of agricultural labor, {B) if such employee is the parent, spouse, —_ a ‘ ’ \ ~~ % - \ 108a bens coat or other‘ member of his employer’ s immediate family, | (C) if such employee (i) is employed as a hand harvest ' . . laborer and is paid on a piece rate basis in an operation ~~. * which has been, and is. customarily and generally recog- ' ‘ “nized as having been, paid on ‘a. piece rate basis in the - region of.employment, (ii) commutes daily from his per- / - manent residence to the farm on ,which he is so employed, i » and (iii) has been employed in ‘agriculture less than thir- 3 . teen: weeks during thé. preceding calendar year, (D) if : such employee (other than an employee described in ! clause (C) of this subsection) (i) is sixteen years of age or under and is employed as a hand harvest laborer, is paid on a piece rate basis in an operation which has been, , and is customarily and’ generally recognized as having } _ been, paid on a piece rate basis in the region of employ- ¥ ; ment, (ii) is employed on the same farm as his parent or +... person standing in the place of his parent, and (iii). is paid ' at the same piéce rate.as employees over age sixteen are ’ paid on the same farrf, of (E) if such-employee is princi+ 7. : pally engaged in the range production of livestock; or [Section 13(a)(6) was amended by PL: 0-86 effective Feb. 1, 1967, by deleting the existing para- - graph and substituting the paragraph above. Prior ~ “to the amendments, Section 13(a) (6) read as follows: - - } — “Ta](6J any employee employed in agriculture : - or in connection with the operation or mainten- ance of. ditches, canals, reservoirs, or waterways, not owned or. operatéd for profit, or operated on serrisP a share-crop basis;.and which are ‘used éxclusively . es for supply. and storing’ of water for agiturel . | purposes; or” me - Section 11 of 81-3 effective Jan. 25, 1950, added “in the above paragraph, these words in lines 2 to 8: “or in connéction with * *. * agricultural asenamil > | See Section 13(b) (12) below for a new overtime ‘ exemption for employees - non-profit irrigation com- —— his Hissdilgiih ia diivont lk Whclthedaiilosdtcmasip.a as ry . s 109a fal (7) any employee to the extent that such employee is exempted by regulations, orders, or certificates of the Secretary issued under section 14; or [Section 13(a)(7) was‘amended to substitute “the Secretary” for “the Administrator” by the Fair Labor Standards Amendments of 1961, approved May 5, 1961, effective September 3, 1961. This section was further amended by .P. L. 89-601; effective Feb. 1, 1967, by changing “or orders” to “orders, or certifica x a [a] (8) any employee employed in connection with the publication of any weekly, semiweekly, or daily newspaper with a circulation of less than four thousand the major _part of which circulation. is within the county. where published | or counties contiguous thereto; or [Section 13(8)(a). was amended by P.L.. 89-601, effective Feb. 1, 1967, by substituting “where - Led lished” for “where cee and published”, ] _ fa] (9) any employee employed by an establishment which is a motion picture theatre; or [Section 13(a) (9), which provided an iemmation for employees of local transit systems, was deleted by P.L. 89-601, effective Feb. 1, 1967, and replaced. by~the paragraph above providing an exemption for employees of motidn picture theaters. A similar exemption previously was provided by Section 13(a)(2) (ii). Prior to the canteen, Section 13(a) (9). read as follows: “fal(9) any employeé of -a_ street, pening or . interurban electric railway, or local trolley or motor- bus carrier, not in an enterprise describéd in section - -3(s) (2); ‘or” ie [Section 13(a) (9) sevvtanaiey was amended by: the Fair Labor Standards Amendments of 1961, approved May‘5, 1961, effective September 3,961, to delete the phrase “not included in. other exemptions coritained in this section”; and to substitute the phrase “not in an = described — 3(s)(2)."] shale tt aa °* 110a a ~ [Section 13(a)(10) was deleted and the subsequent paragraphs were renumbered by P.L. 89-601, effective ‘ Feb. 1, 1967. Prior to the amendments, Section 13(a) (10) read as follows: . “fa] (10) any individual employed hes the area of production (as defined by the Secretary), engaged - handling, packing, storing, compressing, pasteuriz- . g, drying, preparing in their raw or natural state, or 89-601, effective Fep 1, 1967, by adding paragraphs (1), (2), and (3). or to the amendments, Section 13(c) read as follows: .(c) The provisions of sedfion 12 relating to child labor shail hot. apply with respect to:-any employee employed in‘ agriculture outside of school hours for the school district where such employee is living while ~ he is so employed or to any child employed as an - actor or performer in, motion pictures or theatrical ; ‘productions, or in radio or — — pa ok hs OC ee " 12la - [The Secti@h previously was amended by P.L. 81- 393, effective Jan. 25, 1950, which made three changes in this paragraph. ‘First, it substituted these. words in dines 4-7, “oufSide of school hours for the school .° district where such employee i8 living while he is so employed,” replacing the prior language, “while not legally required to attend school.” Second, it added the words “or performer” after the word “actor” in'the third linegfrom the end. Third, it added the last six words, “or in radio or. television productions.”] (d) The provisions of sections 6, 7, and 12 shall not apply with Re to any employee engaged in the delivery of newspapers to the consumer or to any homeworker en- gaged in the making of wreaths com principally of ‘natural holly, pine, cedar, or other evergreens (including the harvesting of the evergreens or other forest products _ used in making such wreaths. ) 3 ) [Section 13(d) was nded by the Fair Labor Standards Amendments Of 1961, approved May 5, 1961, effective September 4, 1961, to insert the following at the end of*the sentence: “or to any homeworker en- _ gaged in the making of wreaths composed principally of natural holly, pine, cedar, or other evergreens (in- cluding the harvesting of the evergreens or other forest products used in making such wreaths).” The subsection, as it read before the 1961 amendments,. was added by section 1} of P.L. 81-393, effective Jan. 25, 1950.) ae . {e) The provisions of section 7 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 . . whem such rates are in effect;:and with respect to such “™~* employees the Sécretary may. make rules and lawful.”] (2).to violate any of the provisions of section 6 or | section 7, or any of the provisions of any regulation’ or order of the Administrator issued under section 14; o (3) to discharge or in any other manner discrimin- . ate against any employee becaus@such employee has . filed any complaint. or instituted or caused to be in- stituted any proceeding under or related to this Act, or. has testified or is about to testify in any such pro- ; ceeding or has served or is about to serve on an industry committee; | , _ (4) to violate any of the provisions of section 12; (5) to violate any of the provisions of section 11(c), or any regulation or order made or continued in effect . under the provisions of section 11(d), or to make any Statement, report, or record filed or kept pursuant to’ ‘the provisions of such section or .of any regulation or - order thereunder, knowing such statement, report, or - record to be false in a material respect. [Section | 13 (b) of P.L. 81-393, effective Jan. 25, 1950, added the Words in lines 3: and 4 of this paragraph which read: “or continued in effect under the cos visions of ‘section 11(d) ig (b) For the purposes of subsection (a) (1) proof that any employee was employed in any place of employment where goods shipped or sold in commerce were produced, within ninety days prior to the removal of the goods from such place of employment, shall. be prima facie evidence that such rer —— — in the production of such goods. " Penaumes Sec. 16. (a) Any person who willfully violates any ‘of the provisions of section 15 shall upon conviction thereof - be subject toa fine of not more than $10,000, or to imprison- ment for not more than six-months, or. both. No person - .. T26a shall be imprisoned under this subsection except for an offense committed after the conviction of such person for a prior offense under this subsection. (b) Any employer who violates the provisions of section 6 or section 7 of this Act-shall be liable to the employee > or employees affected in the amount of their’ unpaid mini- mum wages, or their unpaid overtime compensation, as the case may be, and in an additional equal amount as liqui- dated damages. Action to recover such liability may be © _maintained:-in any court of competent jurisdiction by any >one or more employees for and ’in behalf of himself or themselves and other employees similarly situated. No employee shall be a party plaintiff to any such action un- less he gives his consent in writing to become such a party and such consent is filéd in the court in which such action is brought. The court in such action shall, in addition to any judgment awarded to the plaintiff or plaintiff’, allow — | a reasonable attorney’ s fee to be paid by the. — and costs of the action. - _ The right provided by this subsection. to bictinge an sitios by or on behalf of any employee, and the right of any’ * employee to become a party plaintiff to any such action, _ shall terminate upon the filing of a complaint by the Secretary of Labor in an action under section 17 in which restraint is sought of any further delay (in the payment of unpaid minimum wages, or the amount of unpaid over- time compensation, as the case may be, owing to such employee under section 6 or section 7 of this Act by employer liable therefor under the provisions of this subsection.” —- - [Section 16(b) was amended to add the last sentence by the Fair. Labor Standards Amendments of 1961, approved May 5, 1961, effective September 3, — ] (e) The Administrator is authorized to weapons the payment of the unpaid minimum wages or the unpaid over- time compensation owing to any employee or employees under section 6 or section 7 of this’Act, and the agreement of any employee to — such payment shall upon pay- 129a “ment in full constitute a waiver by such employee of any - right he may have under subsection:(b) of this section to , such unpaid minimum wages or unpaid overtime compen- sation and an additional equal amount.as liquidated dam- — - ages. When a written request is filed by any employee with the:Administrator claiming unpaid minimum wages or unpaid overtime compensation under section 6 or section 7 of this Act, the Administrator may bring an action in any court of competent jurisdiction to recover the amount ‘of such claim: Provided, That this authority to sue shall not be used by the Administrator in any case - ‘involving an issue of law which has not been settled - finally by the courts,’and in any such case no court shall have jurisdiction over such action or proceeding initiated or brought by the Administrator if it does involve any issue of law not so finally settled. The consent of any employee to the bringing of any such action by the Administrator, unless such action is dismissed without prejudice on motion of the Administrator, shall constitute a waiver by such employee of any right of action he may. have under su ion (b)-of this section for such unpaid minimum wages or tinpaid overtime compensation and an additional equal amgunt as liquidated damages. Any sums thus recovered the Administrator on behalf of an em- ployee pursuant to this subsection shall be held in a special _ deposit account and shall be paid, on order of the Adminis- trator, directly to the employee or employees affected. Any such sums not paid to an employee because of. in- ability to do s@within a period of three years shall be covered into the Treasury of the United States as mis- cellaneous’ receipts. In determining when .an act [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385001_1123%3A02. Public record. Not legal advice.