An Act to amend the Fair Labor Standards Act of 1938, as amended, to provide coverage for employees of large enterprises engaged in retail trade or service and of other employers engaged in commerce or in the production of goods for commerce, to increase the minimum wage under the Act to $1.25 an hour, and for other purposes
PL 87-30 (H.R.3935), enacted 05/05/1961

May 5, 1961 
[H. R. 3935] 
Fair Labor Stanci-
ards 
Amendments 
75 S T A T . ] 
PUBLIC LAW 87-30-MAY 5, 1961 
State, and if either spouse filed a timely consent to an election under 
subsection (a) for a taxable year beginning before January 1, 1961, 
the time for filing the consent of the other spouse to such election shall 
not expire prior to May 15,1961."' 
Approved May 4, 1961. 
Public Law 87-30 
AN ACT 
To amend the Fair Labor Standards Act of 1938, as amended, to provide coverage 
for employees of large enterprises engaged in retail trade or service and of 
other employers engaged in connnerce or in tlie prtxliiction of goods for com-
merce, to increase the minimum wajie under the Act to $1.25 an hour, and for 
other purposes. 
Be it enacted hy the Senate and Hou>^e of Representatives 
of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Fair Labor Standards Amendments of 1961". 
of r96i. 
DEFIXITIOKS 
SEC. '2. (a) Paragraph (m) of section 3 of the Fair Labor Stand-
ards Act of 1938, as amended, defining the term "wage'', is amended 
09 us^c 2^03^^' 
by inserting before the period at the end thereof a colon and the 
following: "Provided, That the cost of board, lodging, or other facili-
ties 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 agreement 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 aver-
age cost to the employer or to groups of employers similarly situated, 
or average value to groups of employees, or other appropriate meas-
ures of fair value. Such evaluations, where applicable and pertinent, 
shall be used in lieu of actual measure of cost in determining the 
wage paid to any employee''. 
(b) Paragraph (n) of section 3 of such Act is amended by insert- 
^3 stat. 911. 
ing immediately before ''shall not"' the following ", except as used 
in subsection (s)(l),". 
(c) Section 3 of such Act is further amended by adding at the 
end thereof the following new paragraphs: 
"(p) 'American vessel' includes any vessel which is documented 
or numbered under the laws of the L^nited States. 
"'(q) "Secretary" means the Secretary of Labor. 
"(r) 'Enterprise* means the related activities performed (either 
through unified operation or common control) by any person or per-
sons for a common business purpose, and includes all such activities 
whether performed in one or more establishments or by one or more 
corporate or otlier organizational units including departments of 
an establishment operated through leasing arrangements, but shall 
not include the related activities performed for such enterprise by an 
inflei)endeiit contractor: Provided, That, within the meaning of this 
subsection, a retail or service establishment which is under independent 
ownership shall not be deemed to be so operated or controlled as to be 
other than a separate and distinct enterprise by reason of any arrange-
ment, wliich includes, but is not necessarily limited to, an agreement, 
(1) that it will sell, or sell only, certain goods specified by a particular 
manufacturer, distributor, or advertiser, or (2) that it will join with 
other such establishments in the same industry for the purpose of 
collective purchasing, or (3) that it will have the exclusive right to 
6 
PUBLIC LAW 87-30-MAY 5, 1961 
[75 STAT. 
sell the goods or use the brand name of a manufacturer, distributor, 
or advertiser within a specified area, or by reason of the fact that it 
occupies premises leased to it by a person who also leases premises to 
other retail or service establishments. 
" (s) 'Enterprise engaged in commerce or in the production of goods 
for commerce' means any of the following in the activities of wiiich 
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: 
" (1) any such enterprise which has one or more retail or service 
establishments if the annual gross volume of sales of such enter-
prise 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 establish-
ment) which amount in total annual volume to $250,000 or more; 
"(2) any such enterprise which is engaged in the business of 
operating 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 $1,000,000, exclusive of 
excise taxes at the retail level which are separately stated; 
"(3) any establishment of any such enterprise, except estab-
lishments and enterprises referred to in other paragraphs of this 
subsection, which has employees engaged in commerce or in the 
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 aimual gross volume 
from the business of such enterprise is not less than $350,000; 
"(5) any gasoline service establishment if the annual gross 
volume of sales of such establishment is not less than $250,000, 
exclusive of excise taxes at the retail level which are separately 
stated: 
Provided^ That an establishment shall not be considered to be an 
enterprise engaged in commerce or in the production of goods for 
commerce, or a part of an enterprise engaged in commerce or in the 
production 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 thereof or 
persons standing in the relationship of parent, spouse, or child of such 
owner." 
INVESTIGATIONS OF EFFECTS ON EMPLOYMENT OF FOREIGN 
COMPETITION 
52 st^. 1061. 
SEC. 3. Section 4 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(e) Whenever the Secretary has reason to believe that in any in-
dustry 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 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 complete report of his findings and determina-
tions to the President and to the Congress: Provided^ That he may 
also include in such report information on the increased employment 
resulting from additional exports in any industry under this Act as 
he may determine to be pertinent to such report." 
75 S T A T . ] 
PUBLIC LAW 87-30-MAY 5, 1961 
67 
SPECIAL INDUSTRY COMMITTEES FOR PUERTO RICO AND T H E VIRGIN ISLANDS 
SEC. 4. Subsection (a) of section 5 of such Act is amended by insert- 
f| f^^^- los-
ing after the words "production of goods for commerce"' wherever 
they appear, the following: "or employed in any enterprise engaged 
in commerce or in the production of goods for commerce". 
M I N I M U M WAGES 
SEC. 5. (a)(1) Section 6(a) of such Act is amended by inserting 
after the word "who" in the portion thereof preceding paragraph (1), 
the words "in any workweek". 
(2) Paragraph (1) of section 6(a) of such Act is amended to read 
39 u^c 2
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.
" 
as follows: 
" (1) not less than $1.15 an hour during the first two years from 
the effective date of the Fair Labor Standards Amendments of 
1961, and not less than $1.25 an hour thereafter, except as other-
wise provided in this section." 
(3) The first sentence of paragraph (3) of section 6(a) of such Act 
7° stat. ins. 
is amended to read as follows: 
"(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 established by the Secretary of 
Labor in accordance with recommendations of a special industry 
committee or committees which he shall appoint in the same man-
ner and pursuant to the same provisions as are applicable to the 
special industry committees provided for Puerto Rico and the 
Virgin Islands by this Act as amended from time to time." 
(b) Subsection (b) of section 6 of such Act is amended to read 
52 stat. 1062. 
as follows: 
" (b) Every employer shall pay to each of his employees 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) 
^"'*' P- ^^• 
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 amend-
ments made to section 13(a) of this Act by the Fair Labor Standards 
^°**' P- '^^• 
Amendments of 1961, wages at rates— 
" (1) not less than $1 an hour during 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; 
" (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 com-
pensation 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)." 
(c) Subsection (c) of section 6 of such Act is amended to read as 
^^ stat. 912. 
follows: 
"(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 only for so long as and insofar as such employee 
is covered by a wage order heretofore or hereafter issued by the 
29 use 205. 
B 
PUBLIC LAW 87-30-MAY 5, 1961 
[75 STAT. 
Secretary pursuant to the recommendations of a special industry com-
63Stau SKI. 
mittee appointed pursuant to section 5: Promded, That (1) the fol-
lowing 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 applicable under the most recent wage 
order issued by the Secretary prior to the effective date of the Fair 
Labor Standards Amendments of 1961, increased by 15 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 recommenda-
tions 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 Amendments of 1961 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 recom-
mendations of a special industry committee appointed under section 5, 
whichever is later. 
"(B) Beginning two years after the applicable effective date under 
paragraph (A), not less than the rate or rates prescribed by para-
graph (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 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 re-
view 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 application with respect to any rate or rates 
provided for under paragraph (A^ shall be filed within sixty days 
lollowing the enactment of the Fair Labor Standards Amendments 
of 1961 and any such application with respect to any rate or rates 
provided for under paragraph (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 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 pre-
scribed 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 wa^e order issued pursuant to the 
recommendations 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 effec-
tive date under paragraph (A) or (B), the applicable percentage in-
crease 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 satis-
factory to the Secretary for payment 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 subsection. The Secretary shall be empowered to enforce 
29 use 208. 
75 S T A T . ] 
PUBLIC LAW 87-30-MAY 5, 1961 
69 
such undertaking and any sums 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 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. 
"(2) In the case of any such employee to whom subsection (b) 
would otherwise apply, the Secretary shall within sixty days after the 
enactment of the Fair Labor Standards Amendments of 1961 appoint 
a special industry committee in accordance with section 5 to recom- 
fi use 2
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V 
mend 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 order 
issued pursuant to such recommendation but not before sixty days 
after the effective date of the Fair Labor Standards Amendments of 
1961. 
"(3) The provisions of section 5 and section 8, relating to special 
industry committees, shall be applicable to review committees ap-
pointed 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 
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 minimum wage rate or rates (but not 
in excess of the applicable rate prescribed in subsection (a) or sub-
section (b)) hereafter issued by the Secretary pursuant to the recom-
mendation of a special industry committee." 
MAXIMUM HOURS 
SEC. 6. (a) Subsection (a) of section 7 of such Act is amended by 
designating such subsection as subsection (a)(1), by inserting after 
the word "who" the words "in any workweek", and by striking out 
the period at the end thereof and inserting a semicolon and the word 
"and" in lieu thereof and adding the following new paragraph (2) : 
"(2) No employer shall employ any of his employees 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) 
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 within the purview of this subsection, or (ii) 
is brought within the purview of this subsection by the amendments 
made to section 13 of this Act by the Fair Labor Standards Amend-
ments 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 from such date, 
29 use 207. 
Post, p. 71. 
70 
PUBLIC LAW 87-30-MAY 5, 1961 
[75 STAT. 
"(C) for a workweek longer than forty hours after the expira-
tion 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." 
29 us^c 2
0
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7
.
* 
(b) Subsection (b) of section 7 of such Act is amended by striking 
out "in excess of forty hours in the workweek'' in paragraph 
(2) 
and inserting in lieu thereof the following: "in excess of the maxi-
mum workweek applicable to such employee under subsection (a)". 
(c) Paragraph (5) of subsection (d) of section 7 of such Act is 
amended by striking out "forty in a workweek'' and inserting in lieu 
thereof the following: "in excess of the maximum workweek appli-
cable to such employee under subsection (a)". 
(d) Paragraph (7) of subsection (d) of section 7 of such Act is 
amended by striking out "forty hours" and inserting in lieu thereof 
the following: "the maximum workweek applicable to such employee 
under subsection (a)". 
(e) Subsection (e) of section 7 of such Act is amended (1) by 
striking out "forty hours" and inserting in lieu thereof "the maxi-
mum workweek applicable to such employee under subsection (a)", 
(2) by striking out "section 6(a)" and inserting in lieu thereof "sub-
section (a) or (b) of section 6 (whichever may be applicable)", 
and (3) by striking out "forty in any" and inserting in lieu thereof 
"such maximum". 
(f) Subsection (f) of section 7 of such Act is amended by striking 
out "forty hours" both times it appears therein and inserting in lieu 
thereof the following: "the maximum workweek applicable to such 
employee under such subsection". 
(g) Section 7 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(h) No employer shall be deemed to have violated subsection (a) 
by employing any employee of a retail or service establishment for a 
workweek in excess of the applicable workweek specified therein, if 
(1) the regular rate of pay of such employee is in excess of one and 
one-half times the minimum hourly rate applicable to him under 
29 use 2
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0
6 ^" 
section 6, and (2) more than half his compensation for a representa-
tive period (not less than one month) represents commissions on goods 
or services." 
WAGE ORDERS I N PUERTO RICO AND T H E VIRGIN ISLANDS 
29us^c 20^l.' 
^^^- ^- Subsection (a) of section 8 of such Act is amended by in-
serting after the word "industries" where it appears in the first 
sentence the words "or enterprises"; and by inserting after the words 
"production of goods for commerce" where they appear in the second 
sentence the following: "or in any enterprise engaged in commerce 
or in the production of goods for commerce". 
CHILD LABOR PROVISIONS 
29 use 212. 
gj,^-. g
_ Subsection (c) of section 12 of such Act is amended by 
striking out the period at the end thereof and inserting in lieu thereof 
the following: "or in any enterprise engaged in commerce or in the 
production of goods for commerce." 
75 S T A T . ] 
PUBLIC LAW 87-30-MAY 5, 1961 
71 
EXEMPTIONS 
SEC. 9. Subsections (a) and (b) of section 13 of such Act are 
29115^02^^3'* 
amended to read as follows: 
"(a) The provisions of sections 6 and 7 sliall not apply with respect ^^^^^^g\2, ^°** 
t o 
29 u s e 20*6, 207. 
"(1) any employee employed in a bona fide executive, admin-
istrative, or professional capacity, or in the capacity of outside 
salesman {as such terms are defined and delimited from time to 
time by regulations of the Secretary, subject to the provisions of 
the Administrative Procedure Act, except than an employee of a 
|o ufc^^ibo 1 
retail or service establishment shall not be excluded from the note, 
definition of employee employed in a bona fide executive or admin-
istrative capacity because of the number of hours in his workweek 
which he devotes to activities not directly or closely related to the 
performance of executive or administrative activities, if less than 
40 per centum of his hours worked in tlie workweek are devoted to 
such activities) ; or 
"(2) any employee employed by any retail or service establish-
ment, more than 50 per centum of which establishment's annual 
dollar volume of sales of goods or services is made within the 
State in which the establishment is located, if such establish-
ment— 
" (i) is not in an enterprise described in section 3 (s), or 
'^'*' ^" ^^' 
"(ii) is in such an enterprise and is a hotel, motel, restau-
rant, or motion picture theater; or is an amusement or recrea-
tional 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 institution, or a school for physically 
or mentally 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 level 
which are separately stated) which is less than $250,000. 
A 'retail or service establishment' shall mean an establishment 
75 per centum of whose annual dollar volume of sales of goods 
or services (or of both) is not for resale and is recognized as 
retail sales or services in the particular industry; or 
"(3) any employee employed by any establishment engaged 
in laundering, cleaning, or repairmg clothing or fabrics, more 
than 50 per centum of which establishment's annual dollar 
volume 01 sales of such services is made within the State in 
which the establishment is located: Pf'ovided, 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, or communications business; or 
"(4) any employee employed by an establishment which quali-
fies 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 establish-
ment's annual dollar volume of sales of goods so made or proc-
essed is made within the State in which the establishment is 
located; or 
"(5) any employee employed in the catching, taking, propa-
gating, harvesting, cultivating, or farming of any kind of fish, 
shellfish, Crustacea, sponges, seaweeds, or other aquatic forms of 
72 
PUBLIC LAW 87-30-MAY 5, 1961 
[75 ST AT 
animal and vegetable life, or in the first processing, canning or 
packing such marine products at sea as an incident to, or in con-
junction with, such fishing operations, including the going to and 
returning from work and loading and unloading when per-
formed by any such employee; or 
"(6) any employee employed in agriculture or in connection 
Avith the operation or maintenance of ditches, canals, reservoirs, 
or waterways, not owned or operated for profit, or operated on a 
share-crop basis, and which are used exclusively for supply and 
storing of water for agricultural purposes; or 
" (7) any employee to the extent that such employee is exempted 
29 t^c 2
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1
4
^
*
* 
^^ regulations or orders of the Secretary issued under section 14; 
or 
"(8) any employee employed in connection with the publica-
tion of any weekly, semiweekly, or daily newspaper with a cir-
culation of less than four thousand the major part of which 
circulation is within the county where printed and published or 
counties contiguous thereto; or 
"(9) any employee of a street, suburban or interurban elec-
tric railway, or local trolley or motor bus carrier, not in an enter-
Ant©, p. 66. 
prise described in section 3(s) (2) ; or 
"(10) any individual employed within the area of production 
(as defined by the Secretary), engaged in handling, packing, stor-
ing, compressing, pasteurizing, drying, preparing in their raw 
or natural state, or canning of agricultural or horticultural com-
modities for market, or in making cheese or butter or other dairy 
products; or 
" (11) any switchboard operator employed by an independently 
owned public telephone company which has not more than seven 
hundred and fifty stations; or 
"(12) any employee of an employer engaged in the business of 
operating taxicabs; or 
"(13) any employee or proprietor in a retail or service estab-
lishment which qualifies as an exempt retail or service establish-
ment under clause (2) of this subsection with respect to whom the 
63^stat*^9i2^° ^^' 
provisious of sections 6 and 7 would not otherwise apply, engaged 
29 use 206,207. 
lu handling telegraphic messages for the public under an agency 
or contract arrangement with a telegraph company where the 
telegraph message revenue of such agency does not exceed $500 
a month; or 
"(14) any employee employed as a seaman on a vessel other 
than an American vessel; or 
"(15) any employee employed in planting or tending trees, 
cruising, surveying, or felling timber, or in preparing or trans-
porting logs or other forestry products to tlie mill, processing 
plant, railroad, or other transportation terminal, if the number 
of employees employed by his employer in such forestry or 
lumbering operations does not exceed twelve; or 
"(16) any employee with respect to his employment in agri-
culture by a farmer, notwithstanding other employment of such 
employee in connection with livestock auction operations in which 
sucn farmer is engaged as an adjunct to the raising of live-
stock, 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 rate not less than that prescribed by section 
6(a)(1); or 
Ante, p. 67. 
75 STAT.] 
PUBLIC LAW 87.30-MAY 5, 1961 
73 
"(17) any employee employed within the area of production 
(as defined by the Secretary) by an establishment commonly 
recognized as a country elevator, including such an establish-
ment which sells products and services used in the operation 
of a farm: Provided^ That no more than five employees are 
employed in the establishment in such operations; or 
"(18) 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 
"(19) any employee of a retail or service establishment which 
is primarily engaged in the business of selling automobiles, trucks, 
or farm implements; or 
"(20) any employee of a retail or service establishment who is 
employed primarily in connection with the preparation or offer-
ing of food or beverages for human consumption, either on 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 
"(21) any agricultural employee employed in the growing 
^ 
and harvesting of shade-grown tobacco who is engaged in the 
processing (including, but not limited to, drying, curing, ferment-
ing, bulking, rebulking, sorting, grading, aging, and oaling) of 
such tobacco, prior to the stemming process, for use as cigar 
wrapper tobacco; or 
"(22) 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. 
"(b) The provisions of section 7 shall not apply with respect to-- 
09 use loV* 
"(1) any employee with respect to whom the Interstate Com-
merce Commission has power to establish qualifications and max-
imum hours of service pursuant to the provisions of section 204 
of the Motor Carrier Act, 1935; or 
\% ^itc Itt 
"(2) any employee of an employer subject to the provisions 
of part I of the Interstate Commerce Act; or 
24 s^au 379.^^ 
"(3) any employee of a carrier by air subject to the provisions 
of title II of the Railway Labor Act; or 
^9 surt. use-g^ 
"(4) any employee employed in the canning, processing, mar-
keting, freezing, curing, storing, packing for shipment, or dis-
tributing of any kind of fish, shellfish, or other aquatic forms of 
animal or vegetable life, or any byproduct thereof; or 
"(5) any individual employed as an outside buyer of poultry, 
eggs, cream, or milk, in their raw or natural state; or 
"(6) any employee employed as a seaman; or 
"(7) any employee of a street, suburban or interurban electric 
railway, or local trolley or motorbus carrier; or 
"(8) any employee of a gasoline service station; or 
"(9) any employee employed as an announcer, news editor, or 
chief engineer by a radio or television station the major studio of 
which is located (A) in a city or town of one hundred thousand 
population or less, according to the latest available decennial 
census figures as compiled by the Bureau of the Census, except 
where such city or town is part of a standard metropolitan statis-
tical area, as defined and designated by the Bureau of the Budget, 
which has a total population in excess of one hundred thousand, 
64207 0-62—8 
74 
PUBLIC LAW 87-30-MAY 5, 1961 
[75 ST 
A T , 
or (B) in a city or town of twenty-five thousand population or 
less, w^hicli is part of such an area but is at least 40 airline miles 
from the principal city in such area; or 
"(10) any employee of an independently owned and controlled 
local enterprise (including an enterprise with more than one bulk 
storage establishment) engaged in the wholesale or bulk distribu-
tion of petroleum products if (A) the annual gross volume of sales 
of such enterprise is not more than $1,000,000 exclusive of excise 
taxes, and (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; or 
''(11) any employee employed as a driver or driver's helper 
making local deliveries, who is compensated for such employ-
ment on the basis of trip rates, or other delivery payment plan, 
if the Secretary shall find that such plan has the general pur-
pose and effect of reducing hours worked by such employees to, 
or below, the maximum workweek applicable to them under 
29usc-|o7; 
^ section 7(a)." 
29 use 213. 
SEC. 10. That section 13(d) of such Act, as amended, is amended 
by inserting before the period at the end thereof the following: "or 
to any homeworker engaged in the making of wreaths composed prin-
cipally of natural holly, pine, cedar, or other evergreens (including 
the harvesting of the evergreens or other forest products used in 
making such wreaths)". 
EMPLOYMENT OF STUDENTS 
29 us% 2^^f^' 
^•^^- ^^- Clause (1) of section 14 of such Act is amended by striking 
out "and" after "apprentices," and by inserting after "messages," the 
following: "and of full-time students outside of their school hours in 
any retail or service establishment: Provided, That such employment 
is not of the type ordinarily given to a full-time employee,". 
PENALTIES AND INJUNCTION PROCEEDINGS 
29 use 216. 
gEC. 12. (a) Scctiou 16(b) of such Act is amended by adding at the 
end thereof a new^ sentence as follows: "The right provided by this 
subsection to bring an action 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 
29 us^c' 2^^7' 
^^ 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 overtime compensation, as the case may be, owing 
29 use 206,207. ^Q sucli employee under section 6 or section 7 of this Act by an em-
])loyer liable therefor vinder the provisions of this subsection." 
(b) Section 17 of such Act is amended to read as follows: 
" I N J U N C T I O N PROCEEDINGS 
"SEC. 17. The district courts, together with the United States Dis-
trict Court for the District of the Canal Zone, the District Court of the 
Virgin Islands, and the District Court of Guam shall have jurisdic-
29 u^c' 2^i5^^' 
tion, for cause shown, to restrain violations of section 15, including in 
the case of violations of section 15(a) (2) the restraint of any with-
holding of payment of minimum wages or overtime compensation 
75 S T A T . ] 
PUBLIC LAW 87-31-MAY 8, 1961 
75 
found by the court to be due to employees under this Act (except sums 
which employees are barred from recovering, at the time of the com-
mencement of the action to restrain the violations, by virtue of the 
provisions of section 6 of the Portal-to-Portal Act of 1947)." 
STUDY OF AGRICULTUKAL HANDLING AND PROCESSING EXEMPTIONS AND 
RATES OF PAY IN HOTELS, MOTELS, RESTAURANTS, AND OTHER FOOD 
SERVICE ENTERPRISES 
SEC. 13. The Secretary of Labor shall study the complicated sys-
tem of exemptions now available for the handling and processing 
of agricultural products under such Act and particularly sections 
7(b) (3), 7(c), and 13(a) (10), and the complex problems involving 
rates of pay of employees in hotels, motels, restaurants, and other 
food service enterprises who are exempted from the provisions of 
this Act, and shall submit to the second session of the Eighty-seventh 
Congress at the time of his report under section 4(d) of such Act 
a special report containing the results of such study and informa-
tion, data and recommendations for further legislation designed to 
simplify and remove the inequities in the application of such exemp-
tions. 
EFFECTIVE DATE 
SEC. 14. The amendments made by this Act shall take effect upon 
the expiration of one hundred and twenty days after the date of its 
enactment, except as otherwise provided in such amendments and 
except that the authority to promulgate necessary rules, regulations, 
or orders with regard to amendments made by this Act, under the 
Fair Labor Standards Act of 1938 and amendments thereto, including 
amendments made by this Act, may be exercised by the Secretary on 
and after the date of enactment of this Act. 
Approved May 5, 1961. 
61 Stat. 87. 
29 use 255. 
Report to Con-
gress, 
63 Stat. 912. 
Ante, p. 71. 
29 u s e 207, 213. 
52 Stat. 1062. 
29 use 204, 
52 Stat. 1060, 
29 use 201. 
Public Law 87-31 
AN ACT 
May 8, 1961 
To amend title IV of the Social Security Act to authorize Federal 
financial 
[H. R. 4884] 
participation in aid to dependent children of unemployed parents, and for 
other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of Ameriea in Congress assembled. That title IV of 
ff5'f„^I''"'"?" 
„ . _ , 
•'. 
.
. 
I l l 
IT 
1 
T i 
(»i 
Aid t o depend-
the Social Security Act is amended by adding at the end thereof the ent children. 
following new section: 
42 us^c 60I-6O6. 
u 
D E P E N D E N T C H I L D R E N OF UNEMPLOYED PARENTS 
"SEC. 407. Effective for the period beginning May 1, 1961, and 
ending with the close of June 30,1962, the term 'dependent child' shall, 
notwithstanding section 406(a), include a needy child under the age 
of eighteen who has been deprived of parental support or care by 
reason of the unemployment (as defined by the State) of a parent 
and who is living with any of the relatives specified in section 406(a) 
in a place of residence maintained by one or more of such relatives 
as his (or their) own home, but only with respect to a State whose 
State plan approved under section 402— 
42 use 606. 
42 use 602.