[Federal Register Volume 70, Number 190 (Monday, October 3, 2005)]
[Rules and Regulations]
[Pages 57722-57724]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-19738]



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Part IV





Department of Labor





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Wage and Hour Division



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29 CFR Part 697



Industries in American Samoa; Wage Order; Final Rule

Federal Register / Vol. 70, No. 190 / Monday, October 3, 2005 / Rules 
and Regulations

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DEPARTMENT OF LABOR

Wage and Hour Division

29 CFR Part 697


Industries in American Samoa; Wage Order

AGENCY: Wage and Hour Division, Employment Standards Administration, 
Labor.

ACTION: Final rule.

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SUMMARY: The Department of Labor (DOL) is amending regulations to 
implement changes in the minimum wage rates applicable to various 
industry classifications in American Samoa under the Fair Labor 
Standards Act (FLSA). The FLSA provides for a special industry 
committee appointed by the Secretary of Labor to determine minimum wage 
rates in American Samoa. Industry Committee for All Industries in 
American Samoa No. 26 (the Committee) met in public and executive 
session in Pago Pago, American Samoa during the week of June 20, 2005.

DATES: This rule shall become effective October 18, 2005.

FOR FURTHER INFORMATION CONTACT: Nancy M. Flynn, Director, Office of 
Planning and Analysis, Wage and Hour Division, Employment Standards 
Administration, U.S. Department of Labor, Room S-3502, 200 Constitution 
Avenue, NW., Washington, DC 20210: telephone (202) 693-0551. (This is 
not a toll free number.)
    You may direct questions of interpretation and/or enforcement of 
regulations issued by this agency or referenced in this notice to the 
nearest Wage and Hour Division (WHD) District Office. Locate the 
nearest office by calling the WHD toll-free help line at 1-866-4US-WAGE 
(1-866-487-9243) between 8 a.m. and 5 p.m. in your local time zone, or 
log onto the agency website for a nationwide listing of WHD District 
and Area Offices at: http://www.dol.gov/esa/contacts/whd/america2.htm.

SUPPLEMENTARY INFORMATION:

I. Paperwork Reduction Act

    This regulation is not subject to the Paperwork Reduction Act (Pub. 
L. 104-13), because it contains no new information collection 
requirements and does not modify any existing requirements.

II. Summary of Changes

    This regulation implements the recommendations made by the 
Committee for minimum wage rates applicable to all industries in 
American Samoa. The recommendations increase the minimum wages in the 
government employees, ship maintenance, hotel, tour and travel services 
as well as miscellaneous activities industry classifications by 5 
percent over a two-year period. The Committee retained the previously 
established minimum wage rates for all other industries. Section 697.2 
provides all the industry wage rates and their effective dates in table 
form. The rates provided under the column heading ``October 3, 2005'' 
are those established prior to the effective date of the rates 
recommended by Industry Committee No. 26. The final two columns of the 
table provide the rates effective on October 18, 2005 and October 1, 
2006. Section 697.4 specifies the overall effective date of the revised 
minimum wage rates.

III. Background

    FLSA section 8 and Regulations 29 CFR 511.18 require and authorize 
revision of Regulations 29 CFR 697.2 and 697.4, to implement 
recommendations made by industry committees for setting minimum wage 
rates in American Samoa. The Secretary of Labor appointed and convened 
the Committee, pursuant to FLSA sections 5, 6 and 8. The Secretary 
published an Administrative Order in the Federal Register on May 4, 
2005 (70 FR 23236), that referred to the Committee the question of 
minimum wage rates to be paid under FLSA section 6 to employees within 
the various industries and gave notice of a hearing to be held by the 
Committee in Pago Pago, American Samoa.
    Subsequent to the hearing, the Committee filed a report containing 
findings of fact and recommendations with respect to minimum wage rates 
for various industry classifications with the Administrator of the WHD. 
Attachment A to the Industry Committee No. 26 Report is a written 
dissent prepared by the two Committee members representing employees. 
FLSA section 8(d) (29 U.S.C. 208(d)) requires that this rule reflect 
the recommendations contained in the Committee's report and that it be 
effective 15 days after publication in the Federal Register of the 
order containing such recommendations. In this instance, because of a 
delay in the publication of this notice and the statutory requirement 
that the rule become effective 15 days after publication in the Federal 
Register, it is necessary to delay the effective date of October 1, 
2005 recommended by the Committee for the initial increase until 
October 18, 2005.

IV. Executive Order 12866 and Small Business Regulatory Enforcement 
Fairness Act

    This rule is not a ``significant regulatory action'' within the 
meaning of Executive Order 12866, and no regulatory impact analysis is 
required. This document puts into effect the wage rates recommended by 
Industry Committee No. 26.
    This rule is not expected to: (1) Have an annual effect on the 
economy of $100 million or more or adversely affect in a material way 
the economy, a sector of the economy, productivity, competition, jobs, 
the environment, public health or safety, or State, local, or tribal 
governments or communities; (2) create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) raise novel legal or policy issues arising out of legal 
mandates, the President's priorities or the principles set forth in 
Executive Order 12866.
    The rule is not a major rule within the meaning of the Small 
Business Regulatory Enforcement Fairness Act of 1996. Although the rule 
will solely affect industries in American Samoa, the DOL does not 
expect its impact on costs or prices to be major, for the reasons 
previously discussed.

V. Unfunded Mandates Reform Act

    For purposes of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 
1532, this rule does not include any Federal mandate that may result in 
excess of $100 million in expenditures by state, local and tribal 
governments in the aggregate or by the private sector.

VI. Executive Order 13132 (Federalism)

    The Department has (1) reviewed this rule in accordance with 
Executive Order 13132 regarding federalism and (2) determined that it 
does not have federalism implications. The rule does not have 
substantial direct effects on the States, on the relationship between 
the national government and the States or on the distribution of power 
and responsibilities among the various levels of government.

VII. Administrative Procedure Act

    The Administrative Procedure Act (APA), 5 U.S.C. 553, normally 
requires notice and an opportunity for public comment when an agency 
amends a substantive rule. The APA, however, contains exceptions to the 
notice and comment provisions for (1) ``interpretative rules, general 
statements

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of policy, or rules of agency organization, procedure, or practice'' 
and (2) rules where the agency for good cause finds that notice and 
public comment are ``impracticable, unnecessary, or contrary to the 
public interest.'' Agencies may immediately adopt rules subject to the 
exceptions. The agency hereby finds that good cause exists for 
dispensing with prior notice and public comment procedures for these 
changes and for issuance of this rule without publication 30 days in 
advance of its effective date, as normally required by the APA. (See 5 
U.S.C. 553(b) and (d).) FLSA section 8(d) (29 U.S.C. 208(d)) requires 
that this rule reflect the recommendations contained in the Committee's 
report and that it be effective 15 days after publication in the 
Federal Register of the order containing such recommendations.

VIII. Regulatory Flexibility Act

    The requirements of the Regulatory Flexibility Act, 5 U.S.C. 601 et 
seq., that pertain to regulatory flexibility analysis do not apply to 
this rule, because no notice of proposed rulemaking is required for the 
rule under the APA. (See 5 U.S.C. 601(2).)

IX. Executive Order 13175, Indian Tribal Governments

    This rule does not have ``tribal implications'' under Executive 
Order 13175 that would require a tribal summary impact statement. The 
rule does not have ``substantial direct effects on one or more Indian 
tribes, on the relationship between the Federal government and Indian 
tribes or on the distribution of power and responsibilities between the 
Federal government and Indian tribes.''

X. Effects on Families

    The undersigned hereby certifies that the rule will not adversely 
affect the well-being of families, as discussed under section 654 of 
the Treasury and General Government Appropriations Act, 1999.

XI. Executive Order 13045, Protection of Children

    This rule has no environmental health risk or safety risk that may 
disproportionately affect children.

XII. Environmental Impact Assessment

    A review of this rule in accordance with the requirements of the 
National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321, et 
seq.; the regulations of the Council on Environmental Quality, 40 CFR 
part 1500, et seq.; and the Departmental NEPA procedures, 29 CFR part 
11, indicates the rule will not have a significant impact on the 
quality of the human environment. There is, thus, no corresponding 
environmental assessment or an environmental impact statement.

XIII. Executive Order 13211, Energy Supply

    This rule is not subject to Executive Order 13211. It will not have 
a significant adverse effect on the supply, distribution or use of 
energy.

XIV. Executive Order 12630, Constitutionally Protected Property Rights

    This rule is not subject to Executive Order 12630, because it does 
not involve implementation of a policy ``that has takings 
implications'' or that could impose limitations on private property 
use.

XIV. Executive Order 12988, Civil Justice Reform Analysis

    This rule was drafted and reviewed in accordance with Executive 
Order 12988 and will not unduly burden the Federal court system. The 
rule was: (1) Reviewed to eliminate drafting errors and ambiguities; 
(2) written to minimize litigation; and (3) written to provide a clear 
legal standard for affected conduct and to promote burden reduction.

XV. Document Preparation

    This document was prepared under the direction and control of 
Alfred B. Robinson, Jr., Deputy Administrator, Wage and Hour Division, 
Employment Standards Administration, U.S. Department of Labor.

List of Subjects in 29 CFR Part 697

    American Samoa, Minimum wages.

    Signed at Washington, DC, this 26th day of September, 2005.
Victoria A. Lipnic,
Assistant Secretary, Employment Standards Administration.
Alfred B. Robinson, Jr.,
Deputy Administrator, Wage and Hour Division.

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For the reasons set forth above, title 29, Part 697 of the Code of 
Federal Regulations is amended as set forth below.

PART 697--INDUSTRIES IN AMERICAN SAMOA

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1. The authority citation for part 697 continues to read as follows:

    Authority: 29 U.S.C. 205, 206, 208.


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2. Section 697.2 is revised to read as follows:


Sec.  697.2  Industry wage rates and effective dates.

    Every employer shall pay to each employee in American Samoa, who in 
any workweek is engaged in commerce or in the production of goods for 
commerce, or is employed in any enterprise engaged in commerce or in 
the production of goods for commerce, as these terms are defined in 
section 3 of the Fair Labor Standards Act of 1938, wages at a rate not 
less than the minimum rate prescribed in this section for the 
industries and classifications in which such employee is engaged.

 
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                                                                               Minimum wage
                                                        --------------------------------------------------------
                        Industry                             Effective          Effective          Effective
                                                          October 3, 2005    October 18, 2005   October 1, 2006
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(a) Government Employees...............................              $2.77              $2.84              $2.91
(b) Fish Canning and Processing........................               3.26               3.26               3.26
(c) Petroleum Marketing................................               3.85               3.85               3.85
(d) Shipping and Transportation:
    (1) Classification A...............................               4.09               4.09               4.09
    (2) Classification B...............................               3.92               3.92               3.92
    (3) Classification C...............................               3.88               3.88               3.88
(e) Construction.......................................               3.60               3.60               3.60
(f) Retailing, Wholesaling, and Warehousing............               3.10               3.10               3.10
(g) Bottling, Brewing, and Dairy Products..............               3.19               3.19               3.19
(h) Printing...........................................               3.50               3.50               3.50
(i) Publishing.........................................               3.63               3.63               3.63

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(j) Finance and Insurance..............................               3.99               3.99               3.99
(k) Ship Maintenance...................................               3.34               3.42               3.51
(l) Hotel..............................................               2.86               2.93               3.00
(m) Tour and Travel Services...........................               3.31               3.39               3.48
(n) Private Hospitals and Educational Institutions.....               3.33               3.33               3.33
(o) Garment Manufacturing..............................               2.68               2.68               2.68
(p) Miscellaneous Activities...........................               2.57               2.63               2.70
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3. Section 697.4 is revised to read as follows:


Sec.  697.4  Effective dates.

    The wage rates specified in Sec.  697.2 shall be effective on 
October 18, 2005, except as otherwise specified.

[FR Doc. 05-19738 Filed 9-30-05; 8:45 am]
BILLING CODE 4510-27-P