Minimum Wage, Overtime Pay, and Child Labor: Amending the Fair Labor Standards Act

Minimum Wage, Overtime Pay, and Child Labor: Amending the Fair Labor Standards Act

Order Code RS20970
Updated December 31, 2002
CRS Report for Congress
Received through the CRS Web
Minimum Wage, Overtime Pay, and
Child Labor: Amending the
Fair Labor Standards Act
William G. Whittaker
Specialist in Labor Economics
Domestic Social Policy Division
Summary
The Fair Labor Standards Act (FLSA) is the basic federal statute dealing with
minimum wages, overtime pay, and child labor. First enacted in 1938, it has been
amended through the years to take into account changing workplace trends and to meet
new worker and employer concerns. In the 107th Congress, a wide range of changes in
the FLSA has been proposed — some to strengthen the Act; others, arguably, to reduce
the level of worker protection. This report provides a quick overview of the status of
FLSA-related legislation at the close of the 107th Congress.1
An Introduction to the FLSA
When the federal wage and hour bill (the FLSA) was enacted in 1938, it was not an
especially new concept. Questions about minimum wages, overtime pay, child labor, and
related issues had been a central part of American (and world) policy concerns for at least
half a century. But only in the wake of the Great Depression was Congress able to forge
a comprehensive federal measure that would withstand judicial review while respecting
the idiosyncracies both of employers and workers.
A living document, the FLSA has undergone major amendment on eight separate
occasions, in addition to numerous more narrowly targeted amendments designed to
address particular workplace concerns. In terms of subject matter, the Act is divided
roughly into three spheres: minimum wage (Section 6), overtime pay (Section 7), and
child labor (Section 12). These are accompanied by a body of statutory exemptions or
1 For a more comprehensive overview of legislative initiatives of the 107th Congress, see CRS
Report RL30993, The Fair Labor Standards Act: Wage/Hour and Related Issues Before the 107th
Congress, by William G. Whittaker.
Congressional Research Service ˜ The Library of Congress

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exceptions (Section 13). Definitions appear in Section 3. Other sections, inter alia, deal
with administration, penalties, and appeals.
The federal minimum wage is set in statute and remains at a fixed rate (normally,
declining in value through attrition) until changed through legislative action. Overtime
requirements (1½ times a worker’s regular rate of pay) for hours worked in excess of 40
per week are also set in statute. Child labor protections are, in part, set out in statute but
with wide latitude for standards-setting and regulation by the Department of Labor.
Wage/Hour Proposals in the 107th Congress
Because wage/hour and child labor legislation has been on the congressional agenda,
intermittently, through more than 6 decades, its consideration has developed along more
or less standard lines — but with certain recent variations.
Packaging
Packaging of wage/hour measures can be critical. From the original Act of 1938 up
through the 1989 FLSA amendments, such legislation was freestanding. While it might
deal with overtime pay or child labor or minimum wage or immediately related subjects
(singularly or as part of a package), it normally did not include broader tax or unrelated
business matters. In 1996, however, various FLSA amendments were added to an
umbrella tax package as a floor amendment. As the debate over the minimum wage
developed in the 106th and 107th Congresses, the issue of linkage come to be viewed as
traditional. Thus, some argue that an increase in the minimum wage for workers must
be combined with tax breaks for employers: that the former should not move forward
without the latter.
Since almost every element of the FLSA can be contentious, even internal linkage
can impact the likelihood of enactment of new legislation — either enhancing or
diminishing the chance that a bill will actually become law. In terms of legislation, any
approach — freestanding or a package, purely labor standards or linked with business
concerns — is fraught with risks. Support for or opposition to labor standards laws has
often been philosophical. The issues, however, are also essentially economic: who wins,
who loses, and who pays.
Where Things Stand
In the 107th Congress, legislative proposals dealing with the minimum wage,
overtime pay, and child labor have taken a variety of forms — from simple single-issue
proposals to umbrella measures that deal with a range of changes in the FLSA and with
other subjects as well. The tables that follow provide a simple overview of the various
proposals, broken down by three general categories: minimum wages, overtime pay, and
child labor. In some cases, a particular bill will be listed on more than one table.

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Table 1. Minimum Wage Proposals of the 107th Congress
Increase
Effective date
minimum
for the final
Action beyond
Bill no.
Sponsor
to:
step increase a
referral
Other components
H.R. 222
Traficant
$6.15
July 1, 2002
—
—
H.R. 546
Quinn
6.15
April 1, 2002
—
Umbrella billb
H.R. 648
Graham
—
—
—
Exempts certain
funeral industry
employeesc
H.R. 665
Bonior
6.65
January 1, 2003
—
CNMId
H.R. 881
Isakson
—
—
—
Alters wage
treatment, blind and
disabled workers
H.R. 1441
DeMint
5.15
—
—
States meeting
standards may opt
out of federal
minimum wage
H.R. 1990
Miller,
6.65
January 1, 2003
—
Umbrella bill plus
George
CNMIe
H.R. 2070
Tiberi
—
—
Subcommittee
Minimum wage and
mark-up;
overtime pay
forwarded to
exemption for certain
full committee
sales workers
H.R. 2111
Quinn
6.15
April 1, 2002
—
Umbrella billf
H.R. 2241
Traficant
6.15
July 1, 2002
—
—
H.R. 2424
Traficant
6.77
2 years & 90
—
—
days from
enactment
H.R. 2661
Miller,
3.55 plus
30 days from
—
General reforms
George
(CNMI)
enactment, plus
concerning the
a phase-up to
CNMI
federal standard
H.R. 2679
Andrews
—
—
—
Minimum
wage/overtime pay
exemptions,
organized camps
H.R. 2812
Sanders
8.15
January 1, 2003
—
Indexation of
minimum wage
H.R. 3678
Graham
—
—
—
Exempts certain
“construction
engineering & design
professionals”
H.R. 4799
Bonior
6.65
January 1, 2004
—
CNMId

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Increase
Effective date
minimum
for the final
Action beyond
Bill no.
Sponsor
to:
step increase a
referral
Other components
H.R. 5520
Johnson,
—
—
—
Minimum Wage and
Sam
Overtime Pay
Exemption for
Seasonal Fireworks
Salespersons
S. 8
Daschle
$6.65
January 1, 2003
—
Umbrella bill plus
CNMIg
S. 277
Kennedy
6.65
January 1, 2003
—
CNMId
S. 940
Dodd
6.65
January 1, 2003
—
Umbrella bill plus
CNMIe
S. 964
Kennedy
6.65
January 1, 2003
Legislative
CNMId
Calendar,
General Orders,
No. 54.
S. 2538
Kennedy
6.65
January 1, 2003
Legislative
CNMId
Calendar,
General Orders,
No. 385
a Most bills project a series of step increases. The date listed here represents the final step increase.
b The major portion of the bill deals with tax legislation; alters wage/hour treatment of certain inside sales,
funeral industry, and computer services personnel.
c Bill would exempt licensed funeral directors and embalmers from minimum wage and overtime pay
protections.
d Bill would extend federal minimum wage protection, in steps, to workers in the Commonwealth of the
Northern Mariana Islands (CNMI).
e This is a composite bill dealing with range of education, welfare, and social reform issues in addition to
raising the federal minimum wage and extending it, in steps, to the CNMI. The bill also provides for a
“living wage.” Further concerning the “living wage,” see H.R. 917 and H.R. 1457.
f The major portion of the bill deals with business and real estate taxes. It would increase the minimum
wage to $6.15 per hour after April 1, 2002, but make no other changes in the FLSA.
g The bill would raise the minimum wage and extend it, in steps, to the CNMI. The bill deals with other
socio-economic reforms as well.
Table 2. Overtime Pay Proposals of the 107th Congress
Action
beyond
Other
Bill no.
Sponsor
referral
Impact
components
H.R. 546
Quinn
—
Exempts certain funeral industry
Umbrella billa
and inside sales personnel; changes,
existing exemption, certain
computer workers
H.R. 648
Graham
—
Exempts certain funeral service
Minimum
workers
wage
componentb

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Action
beyond
Other
Bill no.
Sponsor
referral
Impact
components
H.R. 1289
Lantos
—
Restricts mandatory overtime for “a
—
licenced health care employee”c
H.R. 1545
Andrews
—
Alters existing exemption of certain
—
computer workers
H.R. 1602
Ballenger
Hearing in
Redefines “regular rate” for
—
Sub-
overtime pay calculation purposes
committee
H.R. 1902
Langevin
—
Restricts mandatory overtime for “a
—
licensed health care employee”c
H.R. 1982
Biggert
Oversight
Permits private sector employers to
—
hearings held
offer “comp time” to their
employees
H.R. 2070
Tiberi
Marked-up
Would exempt certain inside sale
—
by sub-
personnel, with certain conditions,
committee,
from overtime pay protection
reported to
full
committee
H.R. 2679
Andrews
—
Overtime pay exemption, organized
Minimum
camps
wage
exemption
H.R. 3017
Udall
—
Mandates report on mandatory
Employment
(N.Mex.)
overtime of nurses, Department of
policy,
Veterans’ Affairs
Veterans’
Health Admin.
H.R. 3238
Stark
—
Limits mandated overtime for
—
nurses serving Medicare patients
H.R. 3678
Graham
—
Exempts certain “construction
—
engineering & design professionals”
H.R. 5520
Johnson,
—
Minimum Wage and Overtime Pay
—
Sam
Exemption for Seasonal Fireworks
Salespersons
S. 624
Gregg
—
Proposes a restructuring of the
—
overtime pay provisions of the
FLSAd
S. 1188
Rockefeller
Reported
Mandates report on mandatory
Employment
from
overtime of nurses, Department of
policy,
committee,
Veterans’ Affairs
Veterans’
S.Rept.
Health Admin.
107-80e
S. 1686
Kennedy
—
Limits mandated overtime for
—
nurses serving Medicare patients
a The major portion of bill deals with tax legislation; would increase the minimum wage. It also exempts
certain funeral industry workers from minimum wage protection.

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b Bill would exempt licensed funeral directors and licensed embalmers from minimum wage protection.
c H.R. 1289 (Lantos) and H.R. 1902 (Langevin) are similar, not identical.
d The bill would allow for employers to offer “comp time” to their employees, permit a biweekly work
period (80 hours) rather than the now standard 40-hour work week, and make other changes in the
FLSA.eThe substance of S. 1188 was added to H.R. 3447 and passed (P.L. 107-135).
Table 3. Child Labor Proposals of the 107th Congress
Action
beyond
Bill no.
Sponsor
referral
Impact
H.R. 961
Lantos
—
Umbrella bill strengthening U.S. child labor law
H.R. 1869
Frost
—
Bill to protect young persons employed in firm
also employing person with record of crime or of
violence
H.R. 2239
Roybal-Allard
—
The CARE Act of 2001: strengthens U.S. child
labor law, special provisions dealing with children
in agriculturea
H.R. 2639
Pitts
—
To permit Amish youth, at age 14, to work in
wood processing plants
H.R. 3070
Petri
—
To provide regulations governing traveling sales
crews and to prohibit employment of persons
under 18 years of age in traveling sales work,
under specified conditions.b
H.R. 4667
Foley
—
To provide “exploitive child modeling” with
persons under 17 years of age.
S. 96
Kohl
—
Would provide new protections for young persons
engaged in sales work and prohibit employment
by persons under 18 years of age in traveling sales
work under specified conditionsb
S. 869
Harkin
—
The CARE Act of 2001: strengthens U.S. child
labor law, special provisions dealing with children
in agriculturea
S. 1241
Specter
—
To permit Amish youth, at age 14, to work in
wood processing plants
S. 2549
Kohl
—
Prohibits employment of persons under 18 years
of age in “door-to-door” or related sales work that
keeps them away from home more than 24 hoursb
aH.R. 2239 and S. 869 are, in part, similar. However, H.R. 2239 is more far-reaching and comprehensive.
bWhile H.R. 3070 and S. 96 deal with the same subject area, they are structured somewhat differently and
are not identical bills. S. 2549 is an abbreviated version of S. 96.