To extend the coverage of certain Federal labor laws to foreign documented vessels, and for other purposes.

SECTION 1. COVERAGE OF FOREIGN VESSELS UNDER FEDERAL LABOR LAWS.

    (a) National Labor Relations.--Section 2(2) of the National Labor 
Relations Act (29 U.S.C. 152(2)) is amended--
            (1) by inserting ``(A)'' after the paragraph designation; 
        and
            (2) by adding at the end thereof the following new 
        subparagraph:
    ``(B)(i) The term `employer' also includes--
            ``(I) a foreign documented vessel, if such vessel is 
        regularly engaged in transporting passengers from and to a port 
        or place in the United States, with or without an intervening 
        stop or stops at a foreign port or ports, and such term also 
        includes a foreign documented vessel that is regularly engaged 
        in transporting passengers only from or to a port or place in 
        the United States if the Board determines that such transport 
        is so arranged for the purposes of avoiding being considered an 
        employer for purposes of this Act;
            ``(II) a foreign documented nonliner vessel regularly 
        engaged in transporting cargo in the foreign trade of the 
        United States; and
            ``(III) a foreign documented vessel on which occurs the 
        production or processing of goods or services for sale or 
        distribution in the United States, and a foreign documented 
        vessel that engages in transporting cargo between vessels in 
        international waters and a vessel, port, or place in the United 
        States regardless of the ownership or control of the vessel.
    ``(ii) For purposes of this section and except as provided in 
clause (i)(III), such term shall not include any foreign documented 
vessel that can demonstrate--
            ``(I) that at least 50 percent of its crew is composed of 
        citizens of the country of registry; and
            ``(II) that legal title to such vessel is held by citizens 
        of the country of registry, and beneficial ownership and 
        control, direct or indirect, are held by citizens of the 
        country of registry.
    ``(iii) As used in this subparagraph, the term `citizen' shall 
include--
            ``(I) natural persons who are citizens of the country of 
        registry;
            ``(II) a corporation, if its equity is at least 51 percent 
        owned and controlled by citizens of the country of registry;
            ``(III) a partnership, if all the general partners are 
        citizens of the country of registry and at least 51 percent of 
        the partnership is owned and controlled by citizens of the 
        country of registry.''.
    (b) Fair Labor Standards Act of 1938.--
            (1) Definition.--Section 3(d) of the Fair Labor Standards 
        Act of 1938 (29 U.S.C. 203(d)) is amended--
                    (A) by inserting ``(1)'' after the subsection 
                designation; and
                    (B) by adding at the end thereof the following new 
                paragraph:
    ``(2)(A) The term `employer' also includes--
            ``(i) a foreign documented vessel, if such vessel is 
        regularly engaged in transporting passengers from and to a port 
        or place in the United States, with or without an intervening 
        stop or stops at a foreign port or ports, and such term also 
        includes a foreign documented vessel that is regularly engaged 
        in transporting passengers only from or to a port or place in 
        the United States if the Secretary determines that such 
        transport is so arranged for the purposes of avoiding being 
        considered an employer for purposes of this Act;
            ``(ii) a foreign documented nonliner vessel regularly 
        engaged in transporting cargo in the foreign trade of the 
        United States; and
            ``(iii) a foreign documented vessel on which occurs the 
        production or processing of goods or services for sale or 
        distribution in the United States, and a foreign documented 
        vessel that engages in transporting cargo between vessels in 
        international waters and a vessel, port, or place in the United 
        States regardless of the ownership or control of the vessel.
    ``(B) For purposes of this section and except as provided in 
subparagraph (A)(iii), such term shall not include any foreign 
documented vessel that can demonstrate--
            ``(i) that at least 50 percent of its crew is composed of 
        citizens of the country of registry; and
            ``(ii) that legal title to such vessel is held by citizens 
        of the country of registry, and beneficial ownership and 
        control, direct or indirect, are held by citizens of the 
        country of registry.
    ``(C) As used in this paragraph, the term `citizen' shall include--
            ``(i) natural persons who are citizens of the country of 
        registry;
            ``(ii) a corporation, if its equity is at least 51 percent 
        owned and controlled by citizens of the country of registry;
            ``(iii) a partnership, if all the general partners are 
        citizens of the country of registry and at least 51 percent of 
        the partnership is owned and controlled by citizens of the 
        country of registry.''.
            (2) Minimum wage.--Section 6(a)(4) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 206(a)(4)) is amended by 
        inserting ``or a foreign documented vessel described in section 
        3(d)(2)(A)'' after ``an American Vessel''.
            (3) Exemption.--Section 13(a)(12) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 213(a)(12)) is amended by 
        inserting ``or a foreign documented vessel described in section 
        3(d)(2)(A)'' after ``an American Vessel''.

Summary: Extends coverage under the National Labor Relations Act and the Fair Labor Standards Act of 1938 to certain foreign vessels which:  (1) regularly engage in transporting passengers from and to a place in the United States, with or without intervening stops at foreign ports, including a vessel regularly engaged in transporting passengers only from or to a place in the United States if such transport is so arranged for the purposes of avoiding certain consequences that would otherwise result; (2) (if nonliners) regularly engage in transporting cargo in the foreign trade of the United States; and (3) produce or process goods or services for sale or distribution in the United States, and a vessel that engages in transporting cargo between vessels in international waters and a vessel, port, or place in the United States regardless of the vessel's ownership or control. Excludes any such vessel that can demonstrate that citizens of the country of registry:  (1) compose at least one-half of the crew; and (2) hold legal title and beneficial ownership and control.