29 U.S.C. § 206 — Minimum wage

submitted 88 years ago by ch. 676 to r/title-29-LABOR · 1,554 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law sets the federal minimum wage for most workers. It rose in stages to $7.25 an hour by 2009. Puerto Rico and Virgin Islands home workers, seamen, and farmworkers have their own wage rules. Employers can't pay men and women differently for equal work. Some new hires under age 20 may get a lower training wage for 90 days.

(a) Employees engaged in commerce; home workers in Puerto Rico and Virgin Islands; employees in American Samoa; seamen on American vessels; agricultural employees. Employers must pay workers who work in commerce, make goods for commerce, or work for a business engaged in commerce, at least: (1) Except as this section otherwise says, not less than (A) $5.85 an hour starting 60 days after May 25, 2007; (B) $6.55 an hour starting 12 months after that 60th day; and (C) $7.25 an hour starting 24 months after that 60th day. (2) If the employee is a home worker in Puerto Rico or the Virgin Islands, not less than the minimum piece rate set by regulation or order — or, if there is no such rate, a piece rate the employer sets that pays workers at least the regular minimum hourly wage. These piece rates replace the hourly minimum wage for these workers. The Administrator can make rules needed to run this piece-rate system, including defining "home worker," setting piece rates, and setting the rules employers, agents, and contractors must follow. (3) If the employee is a seaman on an American ship, not less than the rate that gives them, for their pay period, the same total pay as the hourly minimum wage in paragraph (1) for every hour actually on duty — including watch time or work ordered by a superior officer — but not including off-duty time set out in their employment agreement. (4) If the employee works in agriculture, not less than the minimum wage rate under paragraph (1), for periods after December 31, 1977. (b) Additional applicability to employees pursuant to subsequent amendatory provisions. Employers must pay other covered employees (besides those in subsection (a)(5), which no longer exists) who were brought under this section by later amendments — the 1966 Fair Labor Standards Amendments, Title IX of the Education Amendments of 1972, or the 1974 Fair Labor Standards Amendments — the minimum wage rate under subsection (a)(1), effective after December 31, 1977. (c) Repealed. This subsection was repealed by Public Law 104-188, title II, section 2104(c), on August 20, 1996. (d) Prohibition of sex discrimination. (1) At any workplace covered by this section, an employer can't pay one sex less than the other for equal work needing equal skill, effort, and responsibility, done under similar conditions — unless the pay gap comes from a seniority system, a merit system, a system based on quantity or quality of output, or some other factor besides sex. An employer breaking this rule can't fix it by lowering anyone's wages. (2) A labor organization can't cause, or try to cause, an employer to discriminate this way. (3) For enforcement purposes, any wages an employer illegally withholds under this subsection count as unpaid minimum wages or unpaid overtime pay under this chapter. (4) "Labor organization" means any group, agency, or employee committee that exists, at least partly, to deal with employers about grievances, disputes, wages, pay rates, hours, or working conditions. (e) Employees of employers providing contract services to United States. (1) Under a federal contract or subcontract to provide contract services (other than linen supply), the employer must pay any employee not covered by section 213(a)(1) or (f), and not otherwise covered by chapter 67 of title 41, at least the wage rates in subsection (b). (2) Under a federal contract or subcontract to supply linen services, the employer must pay employees in that business at least the rates in subsection (b) — unless more than half of that business's sales come from these federal linen-supply contracts, in which case the employer must pay at least the rate in subsection (a)(1). (f) Employees in domestic service. A domestic worker employed in a household must be paid at least the wage rate in subsection (b), unless their pay is excluded from Social Security wages under section 209(a)(6) of the Social Security Act. A domestic worker who works more than 8 hours total across one or more households in a week must also be paid at least the subsection (b) rate for that work. (g) Newly hired employees who are less than 20 years old. (1) Instead of the rate in subsection (a)(1), an employer may pay a new employee as little as $4.25 an hour for their first 90 calendar days on the job. (2) The Governor of Puerto Rico, with approval from the Financial Oversight and Management Board, may set a period of up to four years during which Puerto Rico employers can pay this lower wage to workers hired after June 30, 2016. This lower wage stops once that Financial Oversight Board ends, even if the set period hasn't run out. (3) Employers can't displace existing workers — including cutting their hours, wages, or benefits — in order to hire new workers at this lower training wage. (4) An employer who breaks this rule is treated as having violated section 215(a)(3). (5) This training wage only applies to workers under 20 — or, in Puerto Rico, under 25 — until the Financial Oversight Board ends.

the actual law source: uscode.house.gov ↗public domain

(a) Employees engaged in commerce; home workers in Puerto Rico and Virgin Islands; employees in American Samoa; seamen on American vessels; agricultural employees

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, wages at the following rates:

(1)

except as otherwise provided in this section, not less than—

(A)

$5.85 an hour, beginning on the 60th day after May 25, 2007;

(B)

$6.55 an hour, beginning 12 months after that 60th day; and

(C)

$7.25 an hour, beginning 24 months after that 60th day;

(2)

if such employee is a home worker in Puerto Rico or the Virgin Islands, not less than the minimum piece rate prescribed by regulation or order; or, if no such minimum piece rate is in effect, any piece rate adopted by such employer which shall yield, to the proportion or class of employees prescribed by regulation or order, not less than the applicable minimum hourly wage rate. Such minimum piece rates or employer piece rates shall be commensurate with, and shall be paid in lieu of, the minimum hourly wage rate applicable under the provisions of this section. The Administrator, or his authorized representative, shall have power to make such regulations or orders as are necessary or appropriate to carry out any of the provisions of this paragraph, including the power without limiting the generality of the foregoing, to define any operation or occupation which is performed by such home work employees in Puerto Rico or the Virgin Islands; to establish minimum piece rates for any operation or occupation so defined; to prescribe the method and procedure for ascertaining and promulgating minimum piece rates; to prescribe standards for employer piece rates, including the proportion or class of employees who shall receive not less than the minimum hourly wage rate; to define the term “home worker”; and to prescribe the conditions under which employers, agents, contractors, and subcontractors shall cause goods to be produced by home workers;

(3)

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

(4)

if such employee is employed in agriculture, not less than the minimum wage rate in effect under paragraph (1) after December 31, 1977.

(b) Additional applicability to employees pursuant to subsequent amendatory provisions

Every employer shall pay to each of his employees (other than an employee to whom subsection (a)(5) 1 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 in such workweek is brought within the purview of this section by the amendments made to this chapter by the Fair Labor Standards Amendments of 1966, title IX of the Education Amendments of 1972 [20 U.S.C. 1681 et seq.], or the Fair Labor Standards Amendments of 1974, wages at the following rate: Effective after December 31, 1977, not less than the minimum wage rate in effect under subsection (a)(1).

(d) Prohibition of sex discrimination

(1)

No employer having employees subject to any provisions of this section shall discriminate, within any establishment in which such employees are employed, between employees on the basis of sex by paying wages to employees in such establishment at a rate less than the rate at which he pays wages to employees of the opposite sex in such establishment for equal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions, except where such payment is made pursuant to (i) a seniority system; (ii) a merit system; (iii) a system which measures earnings by quantity or quality of production; or (iv) a differential based on any other factor other than sex: Provided, That an employer who is paying a wage rate differential in violation of this subsection shall not, in order to comply with the provisions of this subsection, reduce the wage rate of any employee.

(2)

No labor organization, or its agents, representing employees of an employer having employees subject to any provisions of this section shall cause or attempt to cause such an employer to discriminate against an employee in violation of paragraph (1) of this subsection.

(3)

For purposes of administration and enforcement, any amounts owing to any employee which have been withheld in violation of this subsection shall be deemed to be unpaid minimum wages or unpaid overtime compensation under this chapter.

(4)

As used in this subsection, the term “labor organization” means any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.

(e) Employees of employers providing contract services to United States

(1)

Notwithstanding the provisions of section 213 of this title (except subsections (a)(1) and (f) thereof), every employer providing 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 chapter 67 of title 41 or to whom subsection (a)(1) of this section is not applicable, wages at rates not less than the rates provided for in subsection (b) of this section.

(2)

Notwithstanding the provisions of section 213 of this title (except subsections (a)(1) and (f) thereof) and the provisions of chapter 67 of title 41, 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.

(f) Employees in domestic service

Any employee—

(1)

who in any workweek is employed in domestic service in a household shall be paid wages at a rate not less than the wage rate in effect under subsection (b) unless such employee’s compensation for such service would not because of section 209(a)(6) of the Social Security Act [42 U.S.C. 409(a)(6)] constitute wages for the purposes of title II of such Act [42 U.S.C. 401 et seq.], or

(2)

who in any workweek—

(A)

is employed in domestic service in one or more households, and

(B)

is so employed for more than 8 hours in the aggregate,

shall be paid wages for such employment in such workweek at a rate not less than the wage rate in effect under subsection (b).

(g) Newly hired employees who are less than 20 years old

(1)

In lieu of the rate prescribed by subsection (a)(1), any employer may pay any employee of such employer, during the first 90 consecutive calendar days after such employee is initially employed by such employer, a wage which is not less than $4.25 an hour.

(2)

In lieu of the rate prescribed by subsection (a)(1), the Governor of Puerto Rico, subject to the approval of the Financial Oversight and Management Board established pursuant to section 2121 of title 48, may designate a time period not to exceed four years during which employers in Puerto Rico may pay employees who are initially employed after June 30, 2016, a wage which is not less than the wage described in paragraph (1). Notwithstanding the time period designated, such wage shall not continue in effect after such Board terminates in accordance with section 2149 of title 48.

(3)

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 paragraph (1) or (2).

(4)

Any employer who violates this subsection shall be considered to have violated section 215(a)(3) of this title.

(5)

This subsection shall only apply to an employee who has not attained the age of 20 years, except in the case of the wage applicable in Puerto Rico, 25 years, until such time as the Board described in paragraph (2) terminates in accordance with section 2149 of title 48.

Source credit: (June 25, 1938, ch. 676, § 6, 52 Stat. 1062; June 26, 1940, ch. 432, § 3(e), (f), 54 Stat. 616; Oct. 26, 1949, ch. 736, § 6, 63 Stat. 912; Aug. 12, 1955, ch. 867, § 3, 69 Stat. 711; Aug. 8, 1956, ch. 1035, § 2, 70 Stat. 1118; Pub. L. 87–30, § 5, May 5, 1961, 75 Stat. 67; Pub. L. 88–38, § 3, June 10, 1963, 77 Stat. 56; Pub. L. 89–601, title III, §§ 301–305, Sept. 23, 1966, 80 Stat. 838, 839, 841; Pub. L. 93–259, §§ 2–4, 5(b), 7(b)(1), Apr. 8, 1974, 88 Stat. 55, 56, 62; Pub. L. 95–151, § 2(a)–(d)(2), Nov. 1, 1977, 91 Stat. 1245, 1246; Pub. L. 101–157, §§ 2, 4(b), Nov. 17, 1989, 103 Stat. 938, 940; Pub. L. 101–239, title X, § 10208(d)(2)(B)(i), Dec. 19, 1989, 103 Stat. 2481; Pub. L. 104–188, [title II], §§ 2104(b), (c), 2105(c), Aug. 20, 1996, 110 Stat. 1928, 1929; Pub. L. 110–28, title VIII, §§ 8102(a), 8103(c)(1)(B), May 25, 2007, 121 Stat. 188, 189; Pub. L. 114–187, title IV, § 403, June 30, 2016, 130 Stat. 586.)

history & why it existsrecord from the source credit

1938Enacted · Act of June 25, 1938, ch. 676 · 52 Stat. 1062
1940Amended · Act of June 26, 1940, ch. 432 · 54 Stat. 616
1949Amended · Act of Oct. 26, 1949, ch. 736 · 63 Stat. 912
1955Amended · Act of Aug. 12, 1955, ch. 867 · 69 Stat. 711
1956Amended · Act of Aug. 8, 1956, ch. 1035 · 70 Stat. 1118
1961Amended · Pub. L. 87-30 · 75 Stat. 67
1963Amended · Pub. L. 88-38 · 77 Stat. 56
1966Amended · Pub. L. 89-601 · 80 Stat. 838, 839, 841
1974Amended · Pub. L. 93-259 · 88 Stat. 55, 56, 62
1977Amended · Pub. L. 95-151 · 91 Stat. 1245, 1246
1989Amended · Pub. L. 101-157 · 103 Stat. 938, 940
1989Amended · Pub. L. 101-239 · 103 Stat. 2481
1996Amended · Pub. L. 104-188 · 110 Stat. 1928, 1929
2007Amended · Pub. L. 110-28 · 121 Stat. 188, 189
2016Amended · Pub. L. 114-187 · 130 Stat. 586

A history note hasn’t been published yet. The record shows enactment by ch. 676 on 1938-06-25.

all 0 arguments · sorted by: best

no arguments yet — make the first case