Fair Labor Standards Amendments of 1989
PL 101-157 (H.R.2710), enacted 11/17/1989

103 STAT. 938 
PUBLIC LAW 101-157—NOV. 17, 1989 
Public Law 101-157 
101st Congress 
An Act 
Nov. 17, 1989 
[H.R. 2710] 
Fair Labor 
Standards 
Amendments of 
1989. 
Business and 
industry. 
Emplojmient 
and 
unemployment. 
29 u s e 201 note. 
To amend the Fair Labor Standards Act of 1938 to increase the minimum wage, and 
for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; REFERENCE. 
(a) SHORT TITLE.—This Act may be cited as the "Fair Labor 
Standards Amendments of 1989". 
(b) REFERENCE.—Whenever in this Act an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section or 
other provision, the reference shall be considered to be made to a 
section or other provision of the Fair Labor Standards Act of 1938 
(29 U.S.C. 201 et seq.). 
SEC. 2. MINIMUM WAGE INCREASE. 
Paragraph (1) of section 6(a) (29 U.S.C. 206(a)(1)) is amended to 
read as follows: 
"(1) except as otherwise provided in this section, not less than 
$3.35 an hour during the period ending March 31, 1990, not less 
than $3.80 an hour during the year beginning April 1, 1990, and 
not less than $4.25 an hour after March 31, 1991;". 
SEC. 3. CHANGE IN ENTERPRISE TEST. 
(a) IN GENERAL.—Subsection (s) of section 3 (29 U.S.C. 203(s)) is 
amended to read as follows: 
"(s)(l) 'Enterprise engaged in commerce or in the production of 
goods for commerce' means an enterprise that— 
"(A)(i) has employees engaged in commerce or in the produc-
tion of goods for commerce, or that has employees handling, 
selling, or otherwise working on goods or materials that have 
been moved in or produced for commerce by any person; and 
"(ii) 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 that are separately stated); 
"(B) is engaged in the operation of a hospital, an institution 
primarily engaged in the care of the sick, the aged, or the 
mentally ill or defective who reside on the premises of such 
institution, a school for mentally or physically handicapped or 
gifted children, a preschool, 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 
"(C) is an activity of a public agency. 
"(2) Any establishment that 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. The sales of such an 
PUBLIC LAW 101-157—NOV. 17, 1989 
103 STAT. 939 
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.". 
(b) PRESERVATION OF COVERAGE.— 
29 use 206 note. 
(1) IN GENERAL.—Any enterprise that on March 31, 1990, was 
suljject to section 6(aXl) of the Fair Labor Standards Act of 1938 
(29 U.S.C. 206(aXl)) and that because of the amendment made 
by subsection (a) is not subject to such section shall— 
(A) pay its employees not less than the minimum wage in 
effect under such section on March 31,1990; 
(B) pay its employees in accordance with section 7 of such 
Act (29 U.S.C. 207); and 
(C) remain subject to section 12 of such Act (29 U.S.C. 
212). 
(2) VIOLATIONS.—A violation of paragraph (1) shall be consid-
ered a violation of section 6, 7, or 12 of the Fair Labor Standards 
Act of 1938, as the case may be. 
(c) CONFORMING AMENDMENTS.— 
(1) SECTION 13 (a) .—Section 13(a) (29 U.S.C. 213(a)) is amended 
by striking out paragraphs (2) and (4). 
(2) SECTION 13 (g).—Section 13(g) is amended— 
(A) by striking out "paragraphs (2) and" and inserting in 
lieu thereof "paragraph"; and 
(B) by striking out ", except that" and all that follows in 
such subsection and inserting in lieu thereof a period. 
(d) TECHNICAL AMENDMENTS.—Section 3(r) (29 U.S.C. 203(r)) is 
amended— 
(1) by inserting "(1)" after "(r)"; 
(2) by striking out ": Provided, That, within" and inserting in 
lieu thereof a period and "Within"; 
(3) by redesignating clauses (1), (2), and (3) as subparagraphs 
(A), (B), and (C), respectively; 
(4) by striking out "For purposes of this subsection" and 
inserting in lieu thereof the following: 
"(2) For purposes of paragraph (1)"; 
(5) by redesignating paragraphs (1), (2), and (3) as subpara-
graphs (A), (B), and (C), respectively; and 
(6) by striking out "public or private or" in subparagraph (A) 
(as so redesignated). 
(e) EFFECTIVE DATE.—The amendments made by this section shall 
29 use 203 note. 
become effective on April 1,1990. 
SEC. 4. PUERTO RICO, VIRGIN ISLANDS, AND AMERICAN SAMOA. 
(a) SPECIAL INDUSTRY COMMITTEES.—Section 5 (29 U.S.C. 205) is 
amended— 
(1) in the first sentence of subsection (a), by striking out 
"Puerto Rico or the Virgin Islands, or in Puerto Rico and the 
Virgin Islands," and inserting in lieu thereof "American 
Samoa"; 
(2) in the second sentence of subsection (a)— 
(A) by striking out "such island or islands" and inserting 
in lieu thereof "American Samoa"; and 
(B) by striking out "Puerto Rico and the Virgin Islands" 
and inserting in lieu thereof "American Samoa"; 
(3) by striking out subsection (e); and 
103 STAT. 940 
PUBLIC LAW 101-157—NOV. 17, 1989 
(4) in the section heading, by striking out "PUERTO RICO AND 
THE VIRGIN ISLANDS" and inserting in lieu thereof "AMERICAN 
SAMOA". 
(b) MINIMUM WAGE.—Section 6 (29 U.S.C. 206) is amended— 
(1) in subsection (aX3)— 
(A) in the first sentence, by striking out all that follows 
"appoint" through the period at the end of the sentence and 
inserting in lieu thereof "pursuant to sections 5 and 8."; 
and 
(B) by striking out the second sentence; and 
(2) by striking out subsection (c) and inserting in lieu thereof 
the following new subsection: 
"(c)(1) The rate or rates provided by subsection (aXD shall be 
applicable in the case of any employee in Puerto Rico who is 
employed by— 
"(A) the United States, 
"(B) an establishment that is a hotel, motel or restaurant, 
"(C) any other retail or service establishment that employs 
such employee primarily in connection with the preparation or 
offering 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 
"(D) any other industry in which the average hourly wage is 
greater than or equal to $4.65 an hour. 
"(2) In the case of any employee in Puerto Rico who is employed in 
an industry in which the average hourly wage is not less than $4.00 
but not more than $4.64, the minimum wage rate applicable to such 
employee shall be increased on April 1, 1990, and each April 1 
thereafter through April 1, 1994, by equal amounts (rounded to the 
nearest 5 cents) so that the highest minimum wage rate prescribed 
in subsection (aXD shall apply on April 1,1994. 
"(3) In the case of an employee in Puerto Rico who is employed in 
an industry in which the average hourly wage is less than $4.00, 
except as provided in paragraph (4), the minimum wage rate ap-
plicable to such employee shall be increased on April 1, 1990, and 
each April 1 thereafter through April 1, 1995, by equal amounts 
(rounded to the nearest 5 cents) so that the highest minimum wage 
rate prescribed in subsection (aXD shall apply on April 1, 1995. 
"(4) In the case of any employee of the Commonwealth of Puerto 
Rico, or a municipality or other governmental entity of the 
Commonwealth, in which the average hourly wage is less than $4.00 
an hour and who was brought under the coverage of this section 
pursuant to an amendment made by the Fair Labor Standards 
Amendments of 1985 (Public Law 99-150), the minimum wage rate 
applicable to such employee shall be increased on April 1, 1990, and 
each April 1 thereafter through April 1, 1996, by equal amounts 
(rounded to the nearest 5 cents) so that the highest minimum wage 
rate prescribed in subsection (aXD shall apply on April 1, 1996.". 
(c) WAGE ORDERS.—Section 8 (29 U.S.C. 208) is amended— 
(1) in the first sentence of subsection (a), by striking out 
"Puerto Rico and the Virgin Islands" and inserting in lieu 
thereof "American Samoa"; 
(2) by striking out the second sentence of subsection (a); 
(3) in the third sentence of subsection (a)— 
PUBLIC LAW 101-157—NOV. 17, 1989 
103 STAT. 941 
(A) by striking out "Puerto Rico or the Virgin Islands, or 
in Puerto Rico and the Virgin Islands," and inserting in 
lieu thereof "American Samoa"; and 
(B) by inserting before the period at the end of the 
sentence ", and who but for section 6(a)(3) would be subject 
to the minimum wage requirements of section 6(a)(1)"; 
(4) in the third sentence of subsection (b)— 
(A) by striking out "Puerto Rico or in the Virgin Islands" 
and inserting in lieu thereof "American Samoa"; 
(B) by striking out "Puerto Rico and the Virgin Islands" 
and inserting in lieu thereof "American Samoa"; and 
(C) by striking out "section 6(c)" and inserting in lieu 
thereof "section 6(aX3)"; and 
(5) in the section heading, by striking out "PUERTO RICO AND 
THE VIRGIN ISLANDS" and inserting in lieu thereof "AMERICAN 
SAMOA". 
(d) EMPLOYMENT UNDER SPECIAL CERTIFICATES.—Section 14(b) (29 
U.S.C. 214(b)) is amended by striking out "(or in" and all that follows 
through "section 6(c))" each place it appears in paragraphs dXA), 
(2), and (3). 
SEC. 5. TIP CREDIT. 
Effective April 1, 1990, the third sentence of section 3(m) (29 Effective date. 
U.S.C. 203(m)) is amended by striking out "in excess of 40 per 
centum of the applicable minimum wage rate," and inserting in lieu 
thereof "in excess of (1) 45 percent of the applicable minimum wage 
rate during the year beginning April 1, 1990, and (2) 50 percent of 
the applicable minimum wage rate after March 31,1991,". 
SEC. 6. TRAINING WAGE. 
29 USC 206 note. 
(a) IN GENERAL.— 
(1) AUTHORITY.—Any employer may, in lieu of the minimum 
wage prescribed by section 6 of the Fair Labor Standards Act of 
1938 (29 U.S.C. 206), pay an eligible employee the wage pre-
scribed by parEigraph (2)— 
(A) while such employee is employed for the period au-
thorized by subsection (g)(lXB)(i), or 
(B) while such employee is engaged in on-the-job training 
for the period authorized by subsection (gXl)(BXii). 
(2) WAGE RATE.—The wage referred to in paragraph (1) shall 
be a wage— 
(A) of not less than $3.35 an hour during the year begin-
ning April 1,1990; and 
(B) beginning April 1, 1991, of not less than $3.35 an hour 
or 85 percent of the wage prescribed by section 6 of such 
Act, whichever is greater. 
(b) WAGE PERIOD.—An employer may pay an eligible employee the 
wage authorized by subsection (a) for a period that— 
(1) begins on or after April 1,1990; 
(2) does not exceed the maximum period during which an 
employee may be paid such wage as determined under subsec-
tion (gXl)(B); and 
(3) ends before April 1,1993. 
(c) WAGE CONDITIONS.—No eligible employee may be paid the 
wage authorized by subsection (a) by an employer i
f
— 
103 STAT. 942 
PUBLIC LAW 101-157—NOV. 17, 1989 
(1) any other individual has been laid off by such employer 
from the position to be filled by such eligible employee or from 
any substantially equivalent position; or 
(2) such employer has terminated the employment of any 
regular employee or otherwise reduced the number of em-
ployees with the intention of filling the vacancy so created by 
hiring an employee to be paid such wage. 
(d) LIMITATIONS.— 
(1) EMPLOYEE HOURS.—During any month in which employees 
are to be employed in an establishment under this section, the 
proportion of employee hours of employment to the total hours 
of employment of all employees in such establishment may not 
exceed a proportion equal to one-fourth of the total hours of 
employment of all employees in such establishment. 
(2) DISPLACEMENT.— 
(A) PROHIBITION.—No employer may take any action to 
displace employees (including partial displacements such as 
reduction in hours, wages, or employment benefits) for 
purposes of hiring individuals at the wage authorized in 
subsection (a). 
(B) DisQUAUFiCATioN.—If the Secretary determines that 
an employer has taken an action in violation of subpara-
graph (A), the Secretary shall issue an order disqualifying 
such employer from employing any individual at such 
w£ige. 
(e) NOTICE.—Each employer shall provide to any eligible employee 
who is to be paid the weige authorized by subsection (a) a written 
notice before the employee begins employment stating the require-
ments of this section and the remedies provided by subsection (f) for 
violations of this section. The Secretary shall provide to employers 
the text of the notice to be provided under this subsection. 
(f) ENFORCEMENT.—Any employer who violates this section shall 
be considered to have violated section 15(a)(3) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 215(aX3)). Sections 16 and 17 of such 
Act (29 U.S.C. 216 and 217) shall apply with respect to the violation. 
(g) DEFINITIONS.—For purposes of this section: 
(1) EUGIBLE EMPLOYEE.— 
(A) IN GENERAL.—The term "eligible employee" means 
with respect to an employer an individual who— 
(i) is not a migrant agricultural worker or a seasonal 
agricultural worker (as defined in paragraphs (8) and 
(10) of section 3 of the Migrant and Seasonal Agricul-
tural Worker Protection Act (29 U.S.C. 1802 (8) and 
(10)) without regard to subparagraph (B) of such para-
graphs and is not a nonimmigrant described in section 
101(aX15XHXiiXa) of the Immigration and Nationality 
Act (8 U.S.C. 1101(aX15XHXiiXa)); 
(ii) has not attained the age of 20 years; and 
(iii) is eligible to be paid the wage authorized by 
subsection (a) as determined under subparagraph (B). 
(B) DURATION.— 
(i) An employee shall initially be eligible to be paid 
the wage authorized by subsection (a) until the em-
ployee has been employed a cumulative total of 90 days 
at such wage. 
(ii) An employee who has been employed by an em-
ployer at the wage authorized by subsection (a) for the 
• ^ ( ^ • # ' ' 
PUBLIC LAW 101-157—NOV. 17, 1989 
103 STAT. 943 
period authorized by clause (i) may be employed by any 
other employer for an additional 90 days if the em-
ployer meets the requirements of subsection (h). 
(iii) The total period, as authorized by clauses (i) and 
(ii), that an employee may be paid the wage authorized 
by subsection (a) may not exceed 180 days. 
(iv) For purposes of this subparagraph, the term 
"employer" means with respect to an employee an 
employer who is required to withhold payroll taxes for 
such employee. 
(C) PROOF.— 
(i) IN GENERAL.—An individual is responsible for 
providing the requisite proof of previous period or peri-
ods of employment with other employers. An employ-
er's good faith reliance on the proof presented to the 
employer by an individual shall constitute a complete 
defense to a charge that the employer has violated 
subsection 03)(2) with respect to such individual. 
(ii) REGULATIONS.—The Secretary of Labor shall issue 
regulations defining the requisite proof required of an 
individual. Such regulations shall establish minimal 
* 
requirements for requisite proof and may prescribe 
that an accurate list of the individual's employers and 
a statement of the dates and duration of employment 
with each employer constitute requisite proof. 
(2) ON-THE-JOB TRAINING.—The term "on-the-job training" 
means training that is offered to an individual while employed 
in productive work that provides training, technical and other 
related skills, and personal skills that are essential to the full 
and adequate performance of such employment. 
(h) EMPLOYER REQUIREMENTS.—An employer who wants to employ 
employees at the wage authorized by subsection (a) for the period 
authorized by subsection (g)(l)(B)(ii) shall— 
(1) notify the Secretary annually of the positions at which 
such employees are to be employed at such wage, 
(2) provide on-the-job training to such employees which meets 
general criteria of the Secretary issued by regulation after 
consultation with the Committee on Labor and Human Re-
sources of the Senate and the Committee on Education and 
Labor of the House of Representatives and other interested 
persons, 
(3) keep on file a copy of the training program which the 
Records 
employer will provide such employees, 
(4) provide a copy of the training program to the employees, 
(5) post in a conspicuous place in places of employment a 
notice of the types of jobs for which the employer is providing 
on-the-job training, and 
(6) send to the Secretary on an annual basis a copy of such 
notice. 
The Secretary shall make available to the public upon request 
notices provided to the Secretary by employers in accordance with 
paragraph (6). 
Public 
information. 
103 STAT. 944 
PUBLIC LAW 101-157—NOV. 17, 1989 
(i) REPORT.—The Secretary of Labor shall report to Congress not 
later than March 1, 1993, on the effectiveness of the wage 
authorized by subsection (a). The report shsdl include— 
(1) an analysis of the impact of such wage on employment 
opportunities for inexperienced workers; 
(2) any reduction in employment opportunities for experi-
enced workers resulting from the employment of employees 
under such wage; 
(3) the nature and duration of the training provided under 
such wage; and 
(4) the degree to which employers used the authority to pay 
such wage. 
SEC. 7, MAXIMUM HOUR EXEMPTION FOR EMPLOYEES RECEIVING RE-
MEDIAL EDUCATION. 
Section 7 (29 U.S.C. 207) is amended by adding at the end thereof 
the following new subsection: 
"(q) Any employer may employ any employee for a period or 
periods of not more than 10 hours in the aggregate in any workweek 
in excess of the maximum workweek specified in subsection (a) 
without paying the compensation for overtime employment pre-
scribed in such subsection, if during such period or periods the 
employee is receiving remedial education that is— 
"(1) provided to employees who lack a high school diploma or 
educational attainment at the eighth grade level; 
"(2) designed to provide reading and other basic skills at an 
eighth grade level or below; and 
"(3) does not include job specific training.". 
2 u s e 60k. 
SEC. 8. APPLICATION OF RIGHTS AND PROTECTIONS OF FAIR LABOR 
STANDARDS ACT OF 1938 TO CONGRESSIONAL AND ARCHITECT 
OF THE CAPITOL EMPLOYEES. 
(a) HOUSE EMPLOYEES.— 
(1) IN GENERAL.—Not later than 180 days after the date the 
minimum wage rate prescribed by section 6(a)(1) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 206(aXl)) is increased 
pursuant to the amendment made by section 2, the rights £Uid 
protections under the Fair Labor Standards Act of 1938 (29 
U.S.C. 201 et seq.) shall apply with respect to any employee in 
an employment position in the House of Representatives and to 
any employing authority of the House of Representatives. 
(2) ADMINISTRATION.—In the administration of this subsec-
tion, the remedies and procedures under the Fair Employment 
Practices Resolution shall be applied. As used in this paragraph, 
the term "Fair Employment Practices Resolution" means 
House Resolution 558, One Hundredth Congress, agreed to Octo-
ber 4, 1988, as continued in effect by House Resolution 15, One 
Hundred First Congress, agreed to January 3,1989. 
(b) ARCHITECT OF THE CAPITOL EMPLOYEES.—Not later than 180 
days after the date the minimum wage rate prescribed by section 
6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) is 
increased pursuant to the amendment made by section 2, the rights 
and protections under the Fair Labor Standards Act of 1938 (29 
U.S.C. 201 et seq.) shall apply with respect to individuals 
employed under the Office of the Architect of the Capitol. 
PUBLIC LAW 101-157—NOV. 17, 1989 
103 STAT. 945 
SEC. 9. CIVIL PENALTIES FOR VIOLATIONS. 
Section 16(e) (29 U.S.C. 216(e)) is amended— 
(1) in the first sentence, by inserting after "or any regulation 
issued under that section," the following: "or any person who 
repeatedly or willfully violates section 6 or 7"; and 
(2) in paragraph (3), by adding after "section 15(aX4)" the 
following: "or a repeated or willful violation of section 15(aX2)". 
Approved November 17, 1989. 
JJ 
LEGISLATIVE HISTORY—H.R. 2710 (S. 1182): 
HOUSE REPORTS: No. 101-260, Pt. 1 (Comm. on Education and Labor). 
SENATE REPORTS: No. 101-117 accompanying S. 1182 (Comm. on Labor and Human 
K6SOlll!*C6S) 
CONGRESSIONAL RECORD, Vol. 135 (1989): 
Nov. 1, considered and psissed House. 
Nov. 6-8, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 25 (1989): 
Nov. 17, Presidential remarks and statement.