(a) The Fair Labor Standards Amendments of 1989 (Pub. L. 101-157)
were enacted into law on November 17, 1989. Among other provisions,
these amendments to the Fair Labor Standards Act (FLSA) increased the
minimum wage in section 6(a)(1) of the Act to $3.80 an hour effective
April 1, 1990, and to $4.25 an hour effective April 1, 1991. With
respect to certain industries and governmental entities in the
Commonwealth
of Puerto Rico, the Amendments provided that these increases would be
phased in over extended periods of time.
(b) Section 6(c) of the FLSA provides for four separate categories
or tiers for implementing the minimum wage rate increases in Puerto
Rico.
(1) For Tier 1, which includes employees of the United States,
employees of hotels, motels, or restaurants, retail or service
establishments that employ such employees primarily in connection with
the preparation or offering of food or beverages for human consumption,
and industries in which the average hourly wage is greater than $4.64,
there shall be no phase-in. The wage rates and effective dates shall be
those specified in section 6(a)(1) of FLSA, i.e., $3.80 per hour
beginning April 1, 1990 and $4.25 per hour beginning April 1, 1991.
(2) For Tier 2, which includes industries in which the average
hourly wage is not less than $4.00 but not more than $4.64, the
increases in the minimum wage rates shall be phased-in in five annual
increments (rounded to the nearest 5 cents) beginning April 1, 1990, and
ending April 1, 1994.
(3) For Tier 3, which includes industries in which the average
hourly wage is less than $4.00, the increases in the minimum wage shall
be phased-in in six annual increments (rounded to the nearest 5 cents)
beginning April 1, 1990, and ending April 1, 1995.
(4) For Tier 4, which includes certain employees of the Commonwealth
of Puerto Rico, municipalities, and other governmental entities of the
Commonwealth in which the average hourly wage is less than $4.00, the
increases shall be phased-in in seven annual increments (rounded to the
nearest 5 cents) beginning April 1, 1990 and ending April 1, 1996.
(c) The Amendments also eliminated reference to Puerto Rico in those
sections of FLSA relating to the establishment and conduct of special
industry committees which recommend minimum wage rates in certain
territories. These sections now apply only to American Samoa. (Industry
committee regulations pertaining to American Samoa are found in 29 CFR
parts 511 and 697).
