[Federal Register Volume 62, Number 197 (Friday, October 10, 1997)]
[Rules and Regulations]
[Pages 52944-52946]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26830]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF LABOR
Wage and Hour Division
29 CFR Part 697
Industries in American Samoa; Wage Order
AGENCY: Wage and Hour Division, Employment Standards Administration,
Labor.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: Under the Fair Labor Standards Act, minimum wage rates in
American Samoa are set by a special industry committee appointed by the
Secretary of Labor. This document puts into effect the minimum wage
rates recommended for various industry categories by Industry Committee
No. 22 which met in Pago Pago, American Samoa, during the week of June
22, 1997.
DATES: This rule shall become effective on October 27, 1997.
Applicability date: The new minimum wage rates are effective on
October 27, 1997 unless otherwise noted.
FOR FURTHER INFORMATION CONTACT: Arthur M. Kerschner, Jr., Office of
Enforcement Policy, Child Labor and Special Employment Team, Wage and
Hour Division, Employment Standards Administration, U.S. Department of
Labor, Room S-3510, 200 Constitution Avenue, NW., Washington, D.C.
20210: telephone (202) 219-7640. This is not a toll free number. Copies
of the Final Rule in alternative formats may be obtained by calling
(202) 219-7605, (202) 219-4634 (TDD). The alternative formats available
are large print, electronic file on computer disk and audio-tape.
SUPPLEMENTARY INFORMATION:
I. Paperwork Reduction Act
This rule contains no reporting or recordkeeping requirements which
are subject to review and approval by the Office of Management and
Budget (OMB) under the Paperwork Reduction Act of 1995 (Pub. L. 104-
13).
II. Background
Pursuant to sections 5, 6, and 8 of the Fair Labor Standards Act of
1938 (52 Stat. 1062, 1064), as amended (29 U.S.C. 205, 206, 208) and
Reorganization Plan No. 6 of 1950 (3 CFR 1949-53 Comp., p. 1004), and
by means of Administrative Order No. 663 (62 F.R. 14446), the Secretary
of Labor appointed and convened Industry Committee No. 22 for
Industries in American Samoa, referred to the Committee the question of
the minimum rates of wages to be paid under section 8 of the FLSA to
employees within the industries, and gave notice of a hearing to be
held by the Committee.
Subsequent to an investigation and a hearing conducted in Pago Pago
pursuant to the notice, the Committee filed with the Administrator of
the Wage and Hour Division a report containing its findings of fact and
recommendations with respect to minimum wage rates for various industry
classifications. The FLSA requires that the Secretary publish this
report in the Federal Register and further requires that the
recommendations in the report be effective 15 days after publication.
Accordingly, as authorized and required by section 8 of the Fair
Labor Standards Act of 1938, Reorganization Plan No. 6 of 1950 and 29
CFR 511.18, this rule hereby revises Sec. 697.1 and 697.3 of 29 CFR
part 697 to implement the recommendations of Industry Committee No. 22.
Executive Order 12866/Section 202 of the Unfunded Mandates Reform Act
of 1995 and Executive Order 12875/Small Business Regulatory Enforcement
Fairness Act
This rule is not a ``significant regulatory action'' within the
meaning of Executive Order 12866, and no regulatory impact analysis is
required. This document puts into effect the wage rates recommended by
Industry Committee No. 22 which met in Pago Pago, American Samoa during
the week of June 22, 1997. The Committee recommended increases over two
years in various industry categories, ranging from 6 cents per hour for
the shipping and transportation industry, classification B--unloading
of fish from marine vessels; to 25 cents per hour for the publishing
industry.
When these increases are fully implemented, wage rates will range
from $2.45 an hour (miscellaneous activities) to $3.87 an hour
(shipping and transportation, classification A, stevedoring,
lighterage, and maritime shipping activities).
There are approximately 16,000 employees in the various industry
classifications. Based on the number of workers whose wages must be
increased to the new minimum wage levels in 1997 and/or 1998, and
assuming that employees currently paid at or in excess of the new
minimum wages will also receive commensurate wage increases to maintain
relative pay comparability, increases in the overall annual wage bill
are expected to be modest--approximately $208,000 in 1997 and $2.8
million in 1998. Thus this rule is not expected to result in a rule
that may [1] have an annual effect on the economy of $100 million or
more or adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities; [2] create a serious inconsistency or otherwise interfere
with an action taken or planned by another agency; [3] materially alter
the budgetary impact of entitlements, grants, user fees, or loan
programs or the rights and obligations of recipients thereof; or [4]
raise novel legal or policy issues arising out of legal mandates, the
President's priorities, or the principles set forth in Executive Order
12866.
For reasons similar to those noted above, the rule does not require
a Sec. 202 statement under the Unfunded Mandates Reform Act of 1995.
Because the Secretary has no authority to change a recommendation of
the Industry Committee, compliance with Executive
[[Page 52945]]
Order 12875 is neither feasible nor permitted by law, and in any event,
the rule is not a significant rule. Furthermore, a resident of American
Samoa is nominated by the Governor of American Samoa as a public member
of the industry committee. Its representatives also provided testimony
and made recommendations at the hearing.
Finally, the rule is not a major rule within the meaning of the
Small Business Regulatory Enforcement Fairness Act of 1996. Although
the rule will impact solely on American Samoa, its impact is not
expected to be significant, for the reasons discussed above.
Regulatory Flexibility Act
Because no notice of proposed rulemaking is required for the rule
under 5 U.S.C. 553(b), the requirements of the Regulatory Flexibility
Act, Pub. L. 96-354, 94 Stat. 1164, 5 U.S.C. 601 et seq. pertaining to
regulatory flexibility analysis, do not apply to this rule. See 5
U.S.C. 601(2).
Administrative Procedure Act
Good cause exists for issuance of this rule without publication 30
days in advance of its effective date, as normally required by the
Sec. 553(d) of the Administrative Procedure Act. As discussed above,
Sec. 8 of the FLSA requires that the rule be effective 15 days after
publication.
Document Preparation
This document was prepared under the direction and control of John
R. Fraser, Acting Administrator, Wage and Hour Division, Employment
Standards Administration, U.S. Department of Labor.
List of Subjects in 29 CFR Part 697
American Samoa Minimum wages.
Accordingly, part 697 of chapter V of title 29, Code of Federal
Regulations is amended as set forth below.
Signed at Washington, D.C. this 3rd day of Oct., 1997.
John R. Fraser,
Acting Administrator, Wage and Hour Division.
PART 697--INDUSTRIES IN AMERICAN SAMOA
1. The authority citation for part 697 continues to read as
follows:
Authority: Secs. 5, 6, 8, 52 Stat. 1062, 1064; 29 U.S.C. 205,
206, 208.
2. Section 697.1 is amended by revising paragraphs(a)(1), (b)(1),
(c)(1), (d)(1), (e)(1), (f)(1), (g)(1), (h)(1), (i)(1), (j)(1) and (2),
(k)(1), (l)(1), (m)(1), and (n)(1); and adding new paragraphs (o) and
(p) to read as follows:
Sec. 697.1 Wage rates and industry definitions.
* * * * *
(a) Fish canning and processing and can manufacturing industry. (1)
The minimum wage for this industry is $3.10 an hour effective July 1,
1996, and $3.17 an hour effective October 27, 1998.
* * * * *
(b) Shipping and transportation industry. (1) The minimum wage for
classification A, stevedoring, lighterage and maritime shipping agency
activities, is $3.75 an hour effective July 1, 1996, and $3.87 an hour
effective October 27, 1998. The minimum wage for classification B,
unloading of fish, is $3.70 an hour effective July 1, 1996, and $3.76
an hour effective October 27, 1998. The minimum wage for classification
C, all other activities, is $3.62 an hour effective July 1, 1996, and
$3.72 an hour effective October 27, 1998.
* * * * *
(c) Tour and travel service industry. (1) The minimum wage for this
industry is $3.16 an hour effective on October 27, 1997, and $3.22 an
hour effective October 27, 1998.
* * * * *
(d) Petroleum marketing industry. (1) The minimum wage for this
industry is $3.60 an hour effective on October 27, 1997, and $3.73 an
hour effective October 27, 1998.
* * * * *
(e) Construction industry. (1) The minimum wage for this industry
is $3.30 an hour effective on October 27, 1997, and $3.40 an hour
effective October 27, 1998.
* * * * *
(f) Hotel industry. (1) The minimum wage for this industry is $2.70
an hour effective on October 27, 1997, and $2.78 an hour effective
October 27, 1998.
* * * * *
(g) Retailing, wholesaling and warehousing industry. (1) The
minimum wage for this industry is $2.87 an hour effective on October
27, 1997, and $2.94 an hour effective October 27, 1998.
* * * * *
(h) Ship maintenance industry. (1) The minimum wage for this
industry is $3.15 an hour effective on October 27, 1997, and $3.20 an
hour effective October 27, 1998.
* * * * *
(i) Bottling, brewing and dairy products industry.
(1) The minimum wage for this industry is $3.01 an hour effective
on October 27, 1997, and $3.07 an hour effective October 27, 1998.
* * * * *
(j) Printing industry. (1) The minimum wage for the printing
industry is $3.25 an hour effective on October 27, 1997, and $3.35 an
hour effective October 27, 1998.
(2) The printing industry is that industry which is engaged in
printing, job printing, and duplicating. This industry shall not
include printing performed by an employer which publishes a newspaper,
magazine, or similar publications.
(k) Finance and insurance industry. (1) The minimum wage for this
industry is $3.69 an hour effective on October 27, 1997, and $3.78 an
hour effective October 27, 1998.
* * * * *
(l) Private hospitals and educational institutions. (1) The minimum
wage for this industry is $3.17 an hour effective on October 27, 1997,
and $3.24 an hour effective October 27, 1998.
* * * * *
(m) Government employees industry. (1) The minimum wage for this
industry is $2.45 effective October 1, 1996, and $2.57 an hour
effective October 1, 1998.
* * * * *
(n) Miscellaneous activities industry. (1) The minimum wage for
this industry is $2.45 an hour effective July 1, 1996.
* * * * *
(o) Garment manufacturing industry. (1) The minimum wage for this
industry is $2.45 an hour effective on October 27, 1997, and $2.55 an
hour effective October 27, 1998.
(2) The garment manufacturing industry is defined as the
manufacture from any material of articles of apparel and clothing made
by knitting, spinning, crocheting, cutting, sewing, embroidering,
dyeing, or any other processes and includes but is not limited to all
clothing; men's, women's and children's suits, clothing and other
products; hosiery; gloves and mittens; sweaters and other outerwear;
swimwear; leather, leather goods, and related products; handkerchief,
scarf, and art linen products; shirts, blouses, and underwear; uniforms
and work clothing; and includes assembling, tagging, ironing, and
packing apparel for shipping. This term does not include manufacturing,
processing or mending of apparel in retail or service establishments,
including clothing stores, laundries, and other stores.
(p) Publishing industry. (1) The minimum wage for the publishing
industry is $3.30 an hour effective on
[[Page 52946]]
October 27, 1997, and $3.45 an hour effective October 27, 1998.
(2) The publishing industry is that industry which is engaged in
the publishing of newspapers, magazines, or similar publications other
than the publishing of a weekly, semiweekly or daily newspaper with a
circulation of less than 4,000, the major part of which circulation is
within the county or counties contiguous thereto.
3. Section 697.3 is revised to read as follows:
Sec. 697.3 Effective dates.
The wage rates specified in Sec. 697.1 shall be effective on
October 27, 1997 except as otherwise specified.
[FR Doc. 97-26830 Filed 10-9-97; 8:45 am]
BILLING CODE 4510-27-P
