An Act to amend the Fair Labor Standards Act of 1938 to extend its protection to additional employees, to raise the minimum wage, and for other purposes
PL 89-601 (H.R.13712), enacted 09/23/1966

830 
PUBLIC LAW 89-601-SEPT. 23, 1966 
[80 
STAT. 
Appropriation. 
the Secretary of the Interior to provide for the use of a portion of such 
property as a museum to be operated by the Secretary in connection 
with the Chesapeake and Ohio Canal. Such property shall not be used 
under authority of any provision of law for any purpose not provided 
in this Act, unless (1) such law is enacted after the date of enactment 
of this Act and (2) specifically authorizes such property to be used 
for such other purpose. 
SEC. 2. For the purpose of carrying out the provisions of this Act, 
there are authorized to be appropriated to the District of Columbia 
such sums as may be necessary, but not to exceed in the aggregate, 
$150,000. 
Approved September 21, 1966. 
September 23, 1966 
[H. R. 13712] 
Fair Labor 
Standards Amend-
ments of 1966. 
Public Law 89-601 
AN ACT 
To amend the Fair Labor Standards Act of 1938 to extend its protection to 
additional employees, to raise the minimum wage, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Fair Labor Standards Amendments of 1966". 
TITLE I—DEFINITIONS 
52 Stat. 1061; 
75 Stat. 65. 
29 u s e 203. 
"Tipped 
employee." 
TIPS 
SEC. 101. (a) Section 3 (m) of the Fair Labor Standards Act of 1938 
is amended hj adding at the end thereof the following new sentence: 
"In determinmg the wage of a tipped employee, the amount paid such 
employee by his employer shall be deemed to be increased on account 
of tips by an amount determined by the employer, but not by an amount 
in excess of 50 per centum of the applicable minimum wage rate, ex-
cept that in the case of an employee who (either himself or acting 
through his representative) shows to the satisfaction of the Secretary 
that the actual amount of tips received by him was less than the amount 
determined by the employer as the amount by which the wage paid 
him was deemed to be increased under this sentence, the amount paid 
such employee by his employer shall be deemed to have been increased 
by such lesser amount." 
(b) Section 3 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(t) 'Tipped employee' means any employee engaged in an occupa-
tion in which he customarily and regularly receives more than $20 a 
month in tips." 
80 STAT. ] 
PUBLIC LAW 89-601-SEPT. 23, 1966 
831 
DEFINITION OF ENTERPRISE 
SEC. 102. (a) Section 3(r) of such Act is amended by adding at 
the end thereof the following: "For purposes of this subsection, the 
activities performed by any person or persons— 
"(1) in connection with the operation of a hospital, an institu-
tion primarily engaged in the care of the sick, the aged, the 
mentally ill or defective who reside on the premises of such insti-
tution, a school for mentally or physically handicapped or gifted 
children, an elementary or secondary school, or an institution of 
higher education (regardless of whether or not such hospital, 
institution, or school is public or private or operated for profit or 
not for profit), or 
"(2) m connection with the operation of a street, suburban or 
interurban electric railway, or local trolley or motorbus carrier, if 
the rates and services of such railway or carrier are subject to regu-
lation by a State or local agency (regardless of whether or not 
such railway or carrier is public or private or operated for profit 
or not for profit), 
shall be deemed to be activities performed for a business purpose." 
(b) Section 3(d) of such Act is amended by inserting after "of a 
State" the following: "(except with respect to employees of a State, 
or a political subdivision thereof, employed (1) in a hospital, institu-
tion, 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)". 
(c) Section 3 (s) of such Act is amended to read as follows: 
" (s) 'Enterprise engaged in commerce or in the production of goods 
for commerce' means an enterprise which has employees engaged in ere". 
commerce or in the production of goods for commerce, including 
employees handling, selling, or otherwise working on goods that have 
been moved in or produced for commerce by any person, and which— 
"(1) during the period February 1,1967, through 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 which are separately stated) or is a gasoline service 
establishment whose annual gross volume of sales is not less than 
$250,000 (exclusive of excise taxes at the retail level which are 
separately stated), and beginning February 1, 1969, is an enter-
prise whose annual gross volume of sales made or business done 
is not less than $250,000 (exclusive of excise taxes at the retail 
level which are separately stated) ; 
"Enterprise en-
gaged in commerce. 
832 
PUBLIC LAW 89-601-SEPT. 23, 1966 
[80 STAT. 
"Elementary 
school." 
"Secondary 
school." 
"(2) is engaged in laundering, cleaning, or repairing clothing 
or fabrics; 
"(3) is engaged in the business of construction or reconstruc-
tion, 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 
elementary or secondary school, or an institution of higher edu-
cation (regardless of whether or not such hospital, institution, or 
school is public or private or operated for pront or not for profit). 
Any establishment which has as its only regular employees the owner 
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 part 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 enterprise for the purpose of this subsection." 
(d) Section 3 of such Act is amended by adding after subsection (u) 
(added by section 103(b) of this Act) the following new subsections: 
"(v) 'Elementary school' means a day or residential school which 
provides elementary education, as determined under State law. 
"(w) 'Secondary school' means a day or residential school which 
provides secondary education, as determined under State law." 
AGRICULTURAL 
EMPLOYEES 
52 Stat. 1060. 
29 u s e 203. 
"Employee." 
SEC. 103. (a) Section 3(e) of such Act is amended to read as 
follows: 
"(e) 'Employee' includes any individual employed by an employer, 
except that such term shall not, for the purposes of section 3(u) 
include— 
"(1) any individual employed by an employer engaged in 
agriculture if such individual is the parent, spouse, child, or other 
member of the employer's immediate family, or 
"(2) any individual who is employed by an employer 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 customarilv and generally recognized as 
having been, paid on a piece rate basis in the region of employ-
ment, (B) commutes daily from his permanent residence to the 
farm on which he is so employed, and (C) has been employed in 
agriculture less than thirteen weeks during the preceding calen-
dar year." 
Ante, p. 831. 
80 STAT. ] 
PUBLIC LAW 89-601-SEPT. 23, 1966 
833 
(b) Section 3 of such Act is further amended by adding after sub-
section (t) (added by section 101 (b) of this Act) the following new 
subsection: 
" (u) *Man-day' means any day during which an employee performs 
' 'Man-daj,.> > 
any agricultural labor for not less than one hour." 
TITLE II—KEVISION OF EXEMPTIONS 
HOTEL, RESTAURANT, AND RECREATIONAL ESTABLISHMENTS; 
HOSPITALS 
AND RELATED INSTITUTIONS 
SEC. 201. (a) Section 13(»V (2) of such Act is amended by striking 
H ^^sc' ^li 
out everything preceding "A 'retail or service establishment' " and in-
serting in lieu thereof the following : 
"(2) any employee employed by any retail or service establish-
ment (except an establishment or employee engaged in laundering, 
cleaning, or repairing clothing or fabrics or an establishment en-
gaged m the operation of a hospital, institution, or school de-
scribed in section 3(s) (4)), if more than 50 per centum of such 
establishment's annual dollar volume of sales of goods or services 
is made within the State in which the establishment is located, and 
such establishment is not in an enterprise described in section 3 (s) 
or such establishment has an annual dollar volume of sales which 
is less than $250,000 (exclusive of excise taxes at the retail level 
which are separately stated)." 
(b)(1) Section 13(b) of such Act is amended by inserting after 
paragraph (7) the following new paragraph in lieu of the paragraph 
repealed by section 211 of this Act: 
"(8) any employee employed by an establishment which is a 
hotel, motel, or restaurant; or any employee who (A) is em-
ployed by an establishment which is an institution (other than 
a hospital) primarily engaged in the care of the sick, the aged, 
or the mentally ill or defective who reside on the premises, and 
(B) receives compensation for employment in excess of forty-
eight hours in any workweek at a rate not less than one and 
one-half times the regular rate at which he is employed; or". 
(2) Section 13(a) of such Act is amended by inserting after para-
graph (2) the following new paragraph in lieu of the paragraph 
repealed by section 202 of this Act: 
"(3) any employee employed by an establishment which is an 
amusement or recreational establishment, if (A) it does not oper-
ate 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 331/^ per centum of 
its average receip^ts for the other six months of such year; or". 
LAUNDRY AND CLEANING ESTABLISHMENTS 
SEC. 202. Section 13(a) (3) of such Act is repealed. 
Repeal. 
AGRICULTURAL 
EMPLOYEES 
SEC. 203. (a) Section 13(a) (6) of such Act is amended to read as 
follows: 
"(6) any employee employed in agriculture (A) if such em-
ployee is employed by an employer who did not, during 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, diild, or other member of his 
834 
PUBLIC LAW 89-601-SEPT. 23, 1966 
[80 STAT. 
employer's immediate family, (C) if such employee (i) is em-
ployed 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 employment, (ii) commutes daily from his permanent residence 
to the farm on which he is so employed, and (iii) has been 
employed in agriculture less than thirteen weeks during the pre-
ceding calendar year, (D) if such employee (other than an^ 
employee described in clause (C) of this subsection) (i) is six-
teen 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 employment, (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 piece rate as 
employees over age sixteen are paid on the same farm, or (E) 
if such employee is principally engaged in the range production 
of livestock; or". 
fs^s^tat* 7 2 
^'^^ Section 13(a) (16) 
of such Act 
(agricultural 
employees 
29 use 213. 
employed in livestock auctions) is repealed, 
(c) Section 13(b) of such Act is amended— 
(A) by striking out the period at the end of paragraph (11) 
and inserting in lieu thereof "; or", and 
(B) by adding at the end of paragraph (11) the following 
new paragraphs: 
"(12) any employee employed in agriculture or in connection 
with the operation or maintenance of ditches, canals, reservoirs, or 
waterways, not owned or operated for profit, or operated on a 
sharecrop basis, and which are used exclusively for supply and 
storing of water for agricultural purposes; or 
" (13) any employee with respect to his employment in agricul-
ture by a farmer, notwithstanding other employment of such 
employee in connection with livestock auction operations in which 
such farmer is engaged as an adjunct to the raising of livestock, 
either on his own account or in conjunction with other farmers, 
if such employee (A) is primarily employed during his workweek 
in agriculture by such farmer, and (B) is paid for his employment 
in connection with such livestock auction operations at a wage 
Post, p. 838. 
j-a^^g j^Q^ Iggg than that prescribed by section 6(a) (1); or". 
63 Stat. 918. 
^^^ Scctiou 13(c) of such Act is amended to read as follows: 
"(c)(1) Except as provided in paragraph (2), the provisions of 
29 use 212. 
section 12 relating to child labor shall not 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. 
"(2) The provisions of section 12 relating to child labor shall apply 
to an employee below the age of sixteen employed in agriculture in 
an occupation that the Secretary of Labor finds and declares to be 
particularly hazardous for the employment of children below the age 
of sixteen, except where such employee is employed by his parent 
or by a person standing in the place of his parent on a farm owned 
or operated by such parent or person. 
"(3) The provisions of section 12 relating to child labor shall not 
apply to any child employed as an actor or performer in motion 
pictures or theatrical productions, or in radio or television produc-
tions." 
AGRICULTURAL PROCESSING EMPLOYEES 
Repeals. 
gjj^ 204. (a) Sections 13 (a) (10) (employees engaged in han-
dling and processing of agricultural, horticultural, and dairy prod-
29 u s e 207. 
80 STAT. ] 
PUBLIC LAW 89-601-SEPT. 23, 1966 
835 
nets); 13(a) (17) (country elevator employees); 13(a) (18) (cotton 
ginning employees); and 13(a) (22) (fruit and vegetable transporta-
tion employees) of such Act are repealed. 
(b) Section 13(b) of such Act is amended by adding after para-
graph (13) (added by section 203(c) of this Act) the following new 
paragraphs: 
"(14) any employee employed within the a,rea of production 
(as defined by the Secretary) by an establishment commonly 
recognized as a country elevator, including such an establishment 
which sells products and services used in the operation of a farm, 
if no more than five employees are employed in the establishment 
in such operations; or 
"(15) any employee engaged in ginning of cotton for market, 
in any place of employment located in a county where cotton is 
grown in commercial quantities, or in the processing of sugar 
beets, sugar-beet molasses, sugarcane, or maple sap, into sugar 
(other than refined sugar) or syrup; or 
"(16) any employee engaged (A) in the transportation and 
preparation for transportation of fruits or vegetables, whether or 
not performed by the farmer, from the farm to a place of first 
processing or first marketing within the same State, or (B) in 
transportation, whether or not performed by the farmer, between 
the farm and any point within the same State of persons employed 
or to be employed in the harvesting of fruits or vegetables; or". 
(c) Subsection (c) of section 7 of such Act is amended to read as 
^3 ^tat. 913. 
>
L ' 
'• 
' 
9Q TTSr" 9 0 7 
follows: 
" (c) For a period or periods of not more than ten w^orkweeks in the 
aggregate in any calendar year, or fourteen workweeks in the aggre-
gate 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 employment prescribed 
in such subsection if such employee (1) is employed by such employer 
in an industry found by the Secretary to be of a seasonal nature, and 
(2) receives 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 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. 
"(d) For a period or periods of not more than ten workweeks in the 
aggregate in any calendar year, or fourteen workweeks in the aggre-
gate in the case of an employer who does not qualify for the exemption 
in subsection (c) 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 employment prescribed 
in such subsection, if such employee— 
" (1) is employed by such employer in an enterprise which is in 
an industry found by the Secretary— 
"(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 commodities 
from farms if such industry is engaged in the handling, pack-
ing, preparing, storing, first processing, or canning of any 
perishable agricultural or horticultural commodities in their 
raw or natural state, or 
"(B) to be of a seasonal nature and engaged in the han-
dling, packing, storing, preparing, first processing, or canning 
of any perishable agricultural or horticultural commodities 
in their raw or natural state, and 
836 
PUBLIC LAW 89-601-SEPT. 23, 1966 
[80 STAT. 
"(2) receives compensation for employment by such employer 
in excess of ten hours in any workday, or for employment in excess 
of forty-eight 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." 
(d) (1) Subsections (d), (e), (f), (g), and (h) of section 7 of such 
75^sta\^*'7o^^' 
^^* ^^® redesignated as subsections (e), (f), (g), (h), and (i), 
2
9 use 207. 
respectively. 
(2) Subsections (g) and (h) of such section 7 (as so redesignated 
by paragraph (1) of this subsection) are each amended by striking 
out "subsection (d)" and inserting in lieu thereof "subsection (e) . 
75 Stat. 72. 
29 u s e 213. 
SMALL NEWSPAPERS 
SEC. 205. Section 13(a) (8) of such Act is amended by striking out 
"where printed and published" and inserting in lieu thereof "where 
published". 
TRANSPORTATION 
COMPANIES 
Repeals. 
gj,^. ^OQ. (a) Sectlou 13(a)(9) of such Act is repealed. 
(b) (1) Section 13(a) (12) of such Act is repealed. 
(2) Section 13(b) of such Act is amended by adding after para-
graph (16) (added by section 204(b) of this Act) the following new 
paragraph: 
"(17) any driver employed by an employer engaged in the 
business of operating taxicabs; or". 
(c) Section 13(b) (7) of such Act is amended to read as follows: 
"(7) any driver, operator, or conductor employed by an em-
ployer engaged in the business of operating a street, suburban or 
interurban electric railway, or local trolley or motorbus carrier, 
if the rates and services of such railway or carrier are subject to 
regulation by a State or local agency; or". 
MOTION PICTURE THEATER EMPLOYEES 
SEC. 207. Section 13(a) of such Act is amended by inserting after 
paragraph (8) the following new paragraph in lieu of the paragraph 
repealed by section 206 (a) of this Act: 
"(9) any employee employed by an establishment which is a 
motion picture theater; or". 
LOGGING CREWS 
Post, p. 838. 
gj^ 208. Section 13 (a) (15) of such A.ct is amended by striking out 
"twelve" and inserting in lieu thereof "eight". 
AUTOMOBILE, AIRCRAFT, AND FARM IMPLEMENT SALES ESTABLISHMENTS 
Repeal. 
Q^ 
209. (a) Sectlon 13(a) (19) of such Act is repealed. 
(b) Section 13(b) of such Act is amended hj inserting after para-
graph (9) the following new paragraph in lieu of the paragraph 
repealed by section 212(a) of this Act: 
" (10) any salesman, partsman, or mechanic primarily engaged 
in selling or servicing automobiles, trailers, trucks, farm imple-
ments, or aircraft if employed by a nonmanufacturing establish-
ment primarily engaged in the business of selling such vehicles 
to ultimate purchasers; or". 
80 STAT. ] 
PUBLIC LAW 89-601-SEPT. 23, 1966 
837 
FOOD SERVICE AND BOWLING ESTABLISHMENT EMPLOYEES 
SEC. 210. (a) 
Section 13(a) (20) of such Act is repealed. 
f^stlu 73 
(b) Section 13(b) of such Act is amended by adding after para- 
29 use 213. 
graph (17) (added by section 206(b) (2) of this Act) me following 
new paragraphs: 
"(18) any employee of a retail or service establishment who is 
employed primarily in connection with the preparation or offering 
of food or beverages for human consumption, either ion the 
premises, or by such services as catering, banquet, box lunch, or 
curb or counter service, to the public, to employees, or to members 
or guests of members of clubs; or 
"(19) any employee of a bowling establishment if such em-
ployee receives compensation for employment in excess of forty-
eight hours in any workweek at a rate not less than one and 
one-half times the regular rate at which he is employed." 
GASOLINE SERVICE STATIONS 
SEC. 211. Section 13 (b) (8) of such Act is repealed. 
^^P^^I-
PETROLEUM DISTRIBUTION EMPLOYEES 
SEC. 212. (a) Section 13 (b) (10) of such Act is repealed. 
^^P^^I-
(b) Section 7(b) (3) of such Act is amended to read as follows: 
^3 sta^ 9^13. 
" (3) by an independently owned and controlled local enterprise 
(including an enterprise with more than one bulk storage estab-
lishment) engaged in the wholesale or bulk distribution of petrole-
um products if— 
" (A) the annual gross volume of sales of such enterprise 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 customers who are 
engaged in the bulk distribution of such products for resale, 
and such employee receives compensation for employment in 
excess of forty hours in any workweek at a rate not less than one 
and one-half times the minimum wage rate applicable to him 
under section 6,". 
^°^^ p- s^s. 
ENIWETOK AND KWAJALEIN ATOLLS AND JOHNSTON 
ISLAND 
SEC. 213. Section 13(f) of such Act is amended by striking out 
29 u*sc 2^^^ 
"and the Canal Zone" ana inserting in lieu thereof "Eniwetok Atoll; 
Kwa 
jalein Atoll; Johnston Island; and the Canal Zone". 
E L E M E N T A R Y AND SECONDARY SCHOOL TEACHERS AND SCHOOL 
ADMINISTRATIVE PERSONNEL 
SEC. 214. Section 13(a)(1) of such Act is amended by inserting 
75 stat. 71. 
after "professional capacity" the following: " (including any employee 
employed in the capacity of academic administrative personnel or 
teacher in elementary or secondary schools)". 
TECHNICAL AND CONFORMING AMENDMENTS 
SEC. 215. (a) Section 3(n) of such Act is amended by striking 
29 use 203. 
out ", except as used in subsection (s) (1),". 
"*"'*' P' *^^' 
838 
PUBLIC LAW 89-60 USEPT. 23, 1966 
[80 STAT. 
29 use* 2
^
^
3 
^^) Section 13(a) of such Act is amended— 
(1) by redesignating paragraphs (11), (13), (14), (16), and 
(21) as paragraphs (10), (11), (12), (13), and (14), respec-
tively, and 
(2) by striking out "; or" at the end of paragraph (14) (as 
so redesignated in this subsection) and inserting in lieu thereof 
a period. 
(c) Paragraph (7) of section 13(a) of such Act is amended by 
striking out "or order" and inserting in lieu thereof ", order, or 
certificate". 
TITLE III—INCREASE IN MINIMUM WAGE 
PRESENTLY COVERED EMPLOYEES 
52 Stat. 1062; 
SEC. 301. (a) Scction 6(a) of such Act is amended by amending 
^^29*usc^206. 
tl^^t portion of the section preceding paragraph (2) to read as 
follows: 
" (a) Every employer shall pay to each of his employees who in any 
workweek is engaged 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, wa^es 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 Amendments of 1966 
and not less than $1.60 an hour thereafter, except as otherwise 
provided in this section;", 
(b) Such section is amended by striking out the period at the end 
of paragraph (3) and inserting a semicolon, and by adding the fol-
lowing new paragraph: 
" (4) 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 direction of a superior 
officer, performing work or standing by, but not including off-
duty periods which are provided pursuant to the employment 
agreement); or". 
AGRICULTURAL EMPLOYEES 
SEC. 302. Section 6(a) of such Act is amended by adding after para-
graph (4) (added by section 301(b) of this Act) the following new 
paragraph: 
"(5) if such employee is employed 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." 
NEWLY COVERED EMPLOYEES 
SEC. 303. Section 6(b) of such Act is amended to read as follows: 
" (b) Every employer shall pay to each of his employees (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, or 
is employed in an enterprise engaged in commerce or in the production 
of goods for commerce, and who m such workweek is brought within 
the purview of this section by the amendments made to this Act by 
80 STAT. ] 
PUBLIC LAW 89-601-SEPT. 23, 1966 
839 
the Fair Labor Standards Amendments of 1966, wages at the following 
rates: 
"(1) not less than $1 an hour during the first year 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 date, 
"(4) not less than $1.45 an hour during the fourth year from 
such date, and 
"(5) not less than $1.60 an hour thereafter." 
EMPLOYEES I N 
PUEKTO RICX3 AND T H E 
VIRGIN 
ISLANDS 
75 Stat. 67. 
29 u s e 206. 
SEC. 304. Section 6(c) of such Act is amended to read as follows: 
"(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 Secretary pursuant to the recommendations of a special industrv 
committee appointed pursuant to section 5. 
29 use 205. 
" (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 following ra;tes shall apply: 
"(A) 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 1966, increased 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 date of the Fair Labor Standards Amend-
ments of 1966 or one year from the effective date of the most 
recent wage order applicable to such employee theretofore issued 
by the Secretary pursuant to the recommendations of a 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 rates applicable under the most recent wa^e order 
issued by the Secretary prior to the effective date of the Fair Labor 
Standards Amendments 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 maj or-
ity of the employees in an industry in Puerto Rico or the Virgin 
Islands, may apply to the Secretary in writing for the appoint-
ment of a review committee to recommend the minimum rate or 
rates to be paid such employees in lieu of the rate or rates pro-
vided by paragraph (A) or (B^. 
Any such application 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 1966 and any such appli-
cation 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 consider such application and may appoint a 
840 
PUBLIC LAW 89-601-SEPT. 23, 1966 
[80 STAT. 
review committee if he has reasonable cause to believe, on the basis 
of financial and other information contained in the application, 
that compliance with any applicable rate or rates prescribed by 
paragraph ('A) or (B) will substantially curtail employment in 
such industry. The Secretary's decision upon any such applica-
tion shall be final. Any wage order issued pursuant to the recom-
mendations of a review committee appointed under this para-
graph shall take 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 committee prior to the applicable 
effective date under paragraph (A) or (B), the applicable per-
centage increase provided by any such paragraph shall take effect 
on the effective date prescribed 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 
with a surety or sureties satisfactory to the Secretary for pay-
ment to his employees 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 sub-
section. The Secretary shall be empowered to enforce such 
undertaking and any sums recovered by him shall be held in a 
special deposit account and shall be paid, on order of the Secre-
tary, 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. 
"(3) In the case of any such employee to whom subsection (a) (5) 
Ante, p. 8 38. 
^j. subsection (b) would otherwise apply, the Secretary shall within 
sixty days after the effective date of the Fair Labor Standards Amend-
ments of 1966 appoint a special 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, but not in excess 
of the applicable rate provided by subsection (a) (5) or subsection 
(b), to be applicable to such employee in lieu of the rate or rates pre-
scribed 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 effective date of the Fair Labor Standards 
Amendments of 1966. 
g^^ Stat. 911, 
«^4^ 'pj^g provisions of section 5 and section 8, relating to special 
29 use 205, 
industry committees, shall be applicable to review 
committees 
208- 
appointed under this subsection. The appointment of a review com-
mittee shall be in addition to and not in lieu of any special industry 
committee required to be appointed pursuant to the provisions of sub-
section (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 pre-
scribed by this subsection shall be in effect only for so long as and inso-
far as such minimum wage rate or 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 recommenda-
tion of a special industry committee." 
80 STAT. J 
PUBLIC LAW 89-601-SEPT. 23, 1966 
841 
CONTRACT SERVICES TO FEDERAL GOVERNMENT 
SEC. 305. Section 6 of such Act is amended by adding at the end 340"'^' ^^" *^^' 
thereof the following new subsection: 
"(e) (1) Notwithstanding the provisions of section 13 of this Act 
(except subsections (a) (1) and (f) thereof), every employer provid-
ing any contract services (other than linen supply services) under a 
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. 361-357) or to whom subsec- 
^^^f^^^t. 1034. 
tion (a) (1) of this section is not applicable, wages at rates not less 
"'^' P- ^^8. 
than the rates provided for in subsection (b) of this section. 
"(2) Notwithstanding the provisions ot section 13 of this Act 
^"'e-PP-833, 
(except subsections (a) (1) and (f) thereof) and the provisions of *^*' 
the Service Contract Act of 1965, every employer 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." 
1 
FEDERAL EMPLOYEES 
S E C 306. Section 18 of such Act is amended by inserting " ( a ) " " use 2?8.^' 
immediately after "SEC. 18." and by adding at the end thereof the 
following new subsection: 
"(b) Notwithstanding any other provision of this Act (other than 
section 13(f)) or any other law, any employee— 
^"'^' P- ^37. 
"(1) described in paragraph (7) of section 202 of the Classi-
fication Act of 1949 (5 U.S.C. 1082(7)) whose compensation is 
required to be fixed and adjusted from time to time as nearly as is 
consistent with the public interest in accordance with prevailing 
rates, and any Federal employee in the Canal Zone engaged in 
employment of the kind described in such paragraph (7), or 
"(2) described in section 7474 of title 10, U n i t ^ States Code, 
whose rates of wages are established to conform, as nearly as is 
consistent with the public interest, with those of private establish-
ments in the immediate vicinity, or 
"(3) employed in a nonappropriated fund instrumentality 
under the jurisdiction of the Armed Forces, 
shall have his basic compensation fixed or adjusted at a wage rate 
which is not less than the appropriate wage rate provided for in section 
6(a)(1) of this Act (except that the wage rate provided for in section 
6(b) shall apply to any employee who performed services during 
the workweek m a work place within the Canal Zone), and shall have 
his overtime compensation set at an hourly rate not less than the over-
time rate provided for in section 7(a)(1) of this Act." 
68 Stat. 1 106. 
70A Stat. 463. 
Intra. 
TITLE IV—APPLICATION OF MAXIMUM HOURS 
PROVISIONS 
PRESENTLY AND NEWLY COVERED EMPLOYEES 
SEC. 401. Section 7(a) of such Act is amended to read as follows: 
75^stat?*69^' ^' 
"(a) (1) Except as otherwise provided in this section, no employer 
2
9 use 207. 
shall employ any of his employees who in any workweek is engaged in 
842 
PUBLIC LAW 89-601-SEPT. 23, 1966 
[80 STAT. 
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, for a workweek longer than forty hours unless such em-
ployee 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. 
"(2) No employer shall employ any of his employees who in any 
workweek is engaged 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, 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 workweek longer 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 expira-
tion of the second year from such date, 
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 the regular rate at which he is employed." 
COMMISSION 
SALESMAN 
SEC. 402. Subsection (i) of section 7 of such Act (as so redesignated 
by section 204(d) of this Act) is amended by adding at the end thereof 
the following new sentence: "In determining the proportion of com-
pensation representing commissions, all earnings resulting from the 
application of a bona fide commission rate shall be deemed commissions 
on goods or services without regard to whether the computed commis-
sions exceed the draw or guarantee." 
HOSPITAL EMPLOYEES 
SEC. 403. Section 7 of such Act is amended by adding after subsec-
tion (i) of such section (as so redesignated by section 204(d) (1) of this 
Act) the following new subsection: 
"(j) No employer engaged in the operation of a hospital shall be 
deemed to have violated subsection (a) if, pursuant to an agreement or 
understanding arrived at between the employer and the employee be-
fore performance of the work, a work period of fourteen consecutive 
days is accepted in lieu of the workweek of seven consecutive days for 
purposes of overtime computation and if, for his employment in excess 
of eight hours in any workday and in excess of eighty hours in such 
fourteen-day period, the employee receives compensation at a rate not 
less than one and one-half times the regular rate at which he is 
employed." 
TITLE V—STUDENTS AND HANDICAPPED WORKERS 
STUDENTS AND HANDICAPPED WORKERS 
" f*ci." oPf*• 
SEC. 501. Section 14 of such Act is amended to read as follows: 
" L E A R N E R S , 
APPRENTICES, STUDENTS, AND HANDICAPPED 
WORKERS 
"SEC. 14. (a) The Secretary of Labor, to the extent necessary in 
order to prevent curtailment of opportunities for employment, shall 
by regulations or by orders provide for the employment of learners, 
of apprentices, and of messengers employed primarily in delivering 
80 STAT. ] 
PUBLIC LAW 89-601-SEPT. 23, 1966 
843 
letters and messages, under special certificates issued pursuant to reg-
ulations of the Secretary, at such wages lower than the minimum wage 
applicable under section 6 and subject to such limitations as to time, „/*j"'*' ^^' ^^®' 
number, proportion, and length of service as the Secretary shall 
prescribe. 
"(b) The Secretary, to the extent necessary in order to prevent 
curtailment of opportunities for employment, shall by regulation or 
order provide for the employment of full-time students, regardless of 
age but in compliance with applicable child labor laws, on a part-time 
basis in retail or service establishments (not to exceed twenty hours in 
any workweek) or on a part-time or a full-time basis in such estab-
lishments during school vacations, under special certificates issued 
pursuant to regulations of the Secretary, at a wage rate not less than 
85 per centum of the minimum wage applicable under section 6, except 
that the proportion of student hours of employment to total hours of 
employment of all employees in any establishment may not exceed 
(1) such proportion for the corresponding month of the twelve-month 
period preceding May 1, 1961, (2) in the case of a retail or service 
establishment wnose employees (other than employees engaged in 
commerce or in the production of goods for commerce) are covered 
by this Act for the first time on or after the effective date of the Fair 
Labor Standards Amendments of 1966, such proportion for the cor-
responding month of the twelve-month period immediately prior to 
such date, or (3) in the case of a retail or service establishment coming 
into existence after May 1, 1961, or a retail or service establishment 
for which records of student hours worked are not available, a pro-
portion of student hours of employment to total hours of employment 
of all employees based on the practice during the twelve-month period 
preceding May 1, 1961, in (A) similar establishments of the same 
employer in the same general metropolitan area in which the new 
establishment is located, (B) similar establishments of the same 
employer in the same or nearby counties if the new establishment 
is not in a metropolitan area, or (C) other establishments of the same 
general character operating in the community or the nearest com-
parable community. 
Before the Secretary may issue a certificate 
under this subsection he must find that such employment will not 
create a substantial probability of reducing the full-time employment 
opportunities of persons other than those employed under this sub-
section. 
"(c) The Secretary, to the extent necessary in order to prevent 
curtailment of opportunities for employment, shall by certificate or 
order provide for the employment of full-time students, regardless 
of age but in compliance with applicable child labor laws, on a part-
time basis in agriculture (not to exceed twenty hours in any work-
week) or on a part-time or a full-time basis in agriculture during 
school vacations, at a wage rate not less than 85 per centum of the 
minimum wage applicable under section 6. Before the Secretary may 
issue a certificate or order under this subsection he must find that such 
employment will not create a substantial probability of reducing the 
full-time employment opportunities of persons other than those 
employed under this subsection. 
"(d)(1) Except as otherwise provided in paragraphs (2) and (3) 
of this suDsection, the Secretary of Labor, to the extent necessary in 
order to prevent curtailment of opportunities for employment, shall 
by regulation or order provide for the employment under special cer-
tificates of individuals (including individuals employed in agricul-
ture) whose earning or productive capacity is impaired by age or 
physical or mental deficiency or injury, at wages which are lower than 
the minimum wage applicable under section 6 of this Act but not less 
844 
PUBLIC LAW 89-601-SEPT. 23, 1966 
[80 STAT. 
than 50 per centum of such wage and which are commensurate with 
those paid nonhandicapped workers in industry in the vicinity for 
essentially the same type, quality, and quantity of work. 
"(2) The Secretary, pursuant to such regulations as he shall pre-
scribe and upon certification of the State agency administering or 
supervising the administration of vocational rehabilitation services, 
may issue special certificates for the employment of— 
" (A) handicapped workers engaged in work which is incidental 
to training or evaluation programs, and 
"(B) multihandicapped individuals and other 
individuals 
whose earning capacity is so severely impaired that they are 
unable to engage in competitive employment, 
at wages which are less than those required by this subsection and 
which are related to the worker's productivity. 
" (3) (A) The Secretary may by regulation or order provide for the 
employment of handicapped clients in work activities centers under 
special certificates at wages which are less than the minimums appli-
84"^"'®' ^^" *^*' 
cable under section 6 of this Act or prescribed by paragraph (1) of 
this subsection and which constitute equitable compensation for such 
clients in work activities centers. 
"Work activi- 
"(B) For purposes of this section, the term 'work activities cen-
cen ers. 
^^^^, gj^^jj meau ceuters planned and designed exclusively to provide 
therapeutic activities for handicapped clients whose physical or men-
tal impairment is so severe as to make their productive capacity 
inconsequential." 
TITLE VI—MISCELLANEOUS 
STATUTE OF LIMITATIONS 
2
9 us^c 216^' 
^^^' ^^^' (^) Section lG(c) of such Act is amended by striking out 
"two-year statute" and by inserting in lieu thereof "statutes". 
(b) Section 6(a) of the Portal-to-Portal Act of 1947 (Public Law 
49, Eightieth Congress) is amended by inserting before the semicolon 
at the end thereof the following: ", except that a cause of action aris-
ing out of a willful violation may be commenced within three years 
after the cause of action accrued". 
EFFECTIVE DATE 
SEC. 602. Except as otherwise provided in this Act, the amendments 
made by this Act shall take effect on February 1,1967. On and after 
the date of the enactment of this Act the Secretary is authorized to 
promulgate necessary rules, regulations, or orders with regard to the 
amendments made by this Act. 
STUDY OF EXCESSIVE OVERTIME 
SEC. 603. The Secretary of Labor is hereby instructed to commence 
immediately a complete study of present practices dealing with over-
time payments for work in excess of forty hours per week and the 
extent to which such overtime work impedes the creation of new job 
cfn^°/ss!° 
opportunities in American industry. 
The Secretary is further in-
structed to report, to the Congress by July 1,1967, the findings of such 
survey with appropriate recommendations. 
CANAL ZONE EMPLOYEES AND PANAMA CANAL STUDY 
SEC. 604. The Secretary of Labor, in cooperation with the Secretary 
of Defense and the Secretary of State, shall (1) undertake a study 
61 Stat. 87. 
29 u s e 255 
80 STAT. 1 
PUBLIC LAW 89.602-SEPT. 24, 1966 
with respect to (A) wage rates payable to Federal employees in the 
Canal Zone engaged in employment of the kind described in para-
graph (7) of section 202 of the Classification Act of 1949 (5 U.S.C. 
1082(7)) and (B) the requirements of an effective and economical 
operation of the Panama Canal, and (2) report to the Confess not 
later than July 1, 1968, the results of his study together with such 
recommendations as he may deem appropriate. 
845 
68 Stat. :l 106. 
Report to 
Congress. 
STUDY o r WAGES PAID HANDICAPPED CLIENTS IN" SHELTERED WORKSHOPS 
SEC. 605. The Secretary of Labor is hereby instructed to commence 
immediately a complete study of wage payments to handicapped 
clients of sheltered workshops and of the feasibility of raising existmg 
wage standards in such workshops. 
The Secretary is further in-
structed to report to the Congress by July 1,1967, the findings of such 
study with appropriate recommendations. 
Report to 
Congress. 
PREVENTION OF DISCRIMINATION BECAUSE OF AGE 
SEC. 606. The Secretary of Labor is hereby directed to submit to the 
Congress not later than January 1,1967 his specific legislative recom-
mendations for implementing the conclusions and recommendations 
contained in his report on age discrimination in employment made 
pursuant to section 715 of Public Law 88-362. Such legislative recom-
mendations shall include, without limitation, provisions specifying 
appropriate enforcement procedures, a particular 
administering 
agency, and the standards, coverage, and exemptions, if any, to be 
included in the proposed enactment. 
Approved September 23, 1966. 
Re C
O mme nda-
tions to Con-
gress. 
78 Stat. 26 5. 
42 u s e 2000e-
14. 
Public Law 89-602 
A N A C T 
September 24, 1966 
T o d e s i g n a t e t h e d a m being c o n s t r u c t e d on t h e Allegheny River, P e n n s y l v a n i a , 
[s. 3625] 
a s t h e " K i n z u a D a m " , a n d t h e l a k e t o be f o r m e d by such d a m i n P e n n s y l v a n i a 
a n d New 
York a s t h e "Allegheny R e s e r v o i r " . 
Be it enacted by the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the dam being 
constructed by the Corps of Engineers, United States Army, on the 
Allegheny River in Warren County, Pennsylvania, authorized by the 
Flood Control Act of June 22, 1936 (Public Law 74-738), shall be 
known and designated hereafter as the "Kinzua Dam", and the lake 
formed by such dam in Warren and McKean Counties, Pennsylvania, 
and Cattaraugus County, New York, shall be known and designated 
as "Allegheny Reservoir". 
SEC. 2. Any law, regulation, document, or record of the United 
States in which such dam and reservoir are designated or referred to 
shall be held to refer to such dam and reservoir under and by the names 
of "Kinzua Dam", and "Allegheny Reservoir". 
Approved September 24, 1966. 
Kinzua Dam. 
Allegheny Res-
erve ir. 
Designation. 
49 Stat. 1570. 
65-300 0-67—56