Industries in American Samoa; Wage Order [08/27/2001]
Volume 66, Number 166, Page 44967-44969
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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.
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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. 24 (the Committee), which met in public and executive session in
Pago Pago, American Samoa, during the week of June 4, 2001.
DATES: This rule and the schedule of rate increases included shall
become effective on September 11, 2001.
FOR FURTHER INFORMATION CONTACT: Alan Moss, Chief Economist, Wage and
Hour Division, Employment Standards Administration, U.S. Department of
Labor, Room S-3510, 200 Constitution Avenue, NW., Washington, DC 20210:
telephone (202) 693-0063. (This is not a toll free number.) Copies of
the Final Rule in alternative formats may be obtained by calling (202)
693-0072 or (202) 693-1461 (TTY). The alternative formats available are
large print, electronic file on computer disk (Word Perfect, ASCII,
Mates with Duxbury Braille System) and audiotape.
SUPPLEMENTARY INFORMATION:
I. Paperwork Reduction Act
This rule contains no reporting or record keeping 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, as amended (29 U.S.C. 205, 206, 208), and by means of
Administrative Order No. 665 (66 FR 7513), the Secretary of Labor
appointed and convened Industry Committee No. 24 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 Acting
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 and 29 CFR 511.18, this rule
hereby revises Secs. 697.1 and 697.3 of 29 CFR part 697 to implement
the recommendations of Industry Committee No. 24.
For the convenience of the public, this regulation has been
restructured to facilitate understanding of its content. Section 697.1
provides definitions of the industries for which minimum wage rates
have been established. Section 697.2 provides industry wage rates and
their effective dates in table form. Under the column heading
``September 11, 2001,'' the rates provided are those established prior
to the effective date of the rates recommended by Special Industry
Committee No. 24 except for the fish canning and processing industry,
for which the Committee set an effective date of ``September 11,
2001.'' The prior rate for the fish canning and processing industry was
$3.20. The final two columns of the table provide the rates effective
on October 1, 2001 and October 1, 2002. Section 697.4 (formerly
Sec. 697.3) specifies the effective date of this regulation.
III. Executive Order 12866, Section 202 of the Unfunded Mandates
Reform Act of 1995 and 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. 24, which met in Pago Pago, American Samoa
during the week of June 4, 2001. The Committee recommended increases
over two years in various industry categories, ranging from 6 cents per
hour for fish canning and processing and the bottling, brewing, and
dairy products industry to 12 cents per hour over two years for
shipping and transportation, classification A, stevedoring, lighterage,
and maritime shipping agency activities.
When these increases are fully implemented, wage rates will range
from $2.57 an hour (miscellaneous activities) to $4.09 an hour
(shipping and transportation, classification A, stevedoring,
lighterage, and maritime shipping activities).
There are approximately 16,000 covered employees in the various
industry classifications. Based on the number of workers whose wages
must be increased to the new minimum wage levels in 2001 and/or 2002,
and assuming that some 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 very modest. 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.
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 on costs or
prices is not expected to be major, for the reasons discussed above.
IV. Executive Order 13132 (Federalism)
The Department has reviewed this rule in accordance with Executive
Order 13132 regarding federalism, and has determined that it does not
have federalism implications.
The rule does not have substantial direct effects on the states, on
the relationship between the national government and the states, or on
the distribution of power and responsibilities among the various levels
of government.
V. Regulatory Flexibility Act
Because no notice of proposed rulemaking is required for the rule
under 5 U.S.C. 533(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).
VI. 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 Section
553(d) of the Administrative Procedure Act. As discussed above, Section
8 of the FLSA requires that the rule be effective 15 days after
publication.
VII. Document Preparation
This document was prepared under the direction and control of
Annabelle T. Lockhart, 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.
Signed at Washington, D.C. this 21st day of August, 2001.
Annabelle T. Lockhart,
Acting Administrator, Wage and Hour Division.
Accordingly, part 697 of Chapter V of Title 29, Code of Federal
Regulations is amended as set forth below.
PART 697--INDUSTRIES IN AMERICAN SAMOA
1. The authority citation for part 697 is revised to read as
follows:
Authority: 29 U.S.C. 205, 206, 208.
2. Section 697.1 is revised to read as follows:
Sec. 697.1 Industry definitions.
(a) Government employees. This industry includes all activities of
employees of the Government of American Samoa. This industry does not
include any employees of the United States or its agencies.
(b) Fish canning and processing. This industry shall include the
canning, freezing, preserving, and other processing of any kind of
fish, shellfish, and other aquatic forms of animal life, the
manufacture of any by-product thereof, and the manufacture of cans and
related activities.
(c) Petroleum marketing. This industry shall include the wholesale
marketing and distribution of gasoline, kerosene, lubricating oils,
diesel and marine fuels, and other petroleum products, bunkering
operations in connection therewith, and repair and maintenance of
petroleum storage facilities.
(d) Shipping and transportation. This industry shall include the
transportation of passengers and cargo by water or by air, and all
activities in connection therewith, including storage and lighterage
operations: Provided, however, that this industry shall not include the
operation of tourist bureaus and of travel and ticket agencies.
Provided, further, that this industry shall not include bunkering of
petroleum products or activities engaged in by seamen on American
vessels which are documented or numbered under the laws of the United
States, which operate exclusively between points in the Samoan Islands,
and which are not in excess of 350 tons net capacity. Within this
industry there shall be three classifications:
(1) Classification A: Stevedoring, lighterage and maritime shipping
agency activities. This classification shall include all employees of
employers who engage in each of the following three services:
stevedoring, lighterage and maritime shipping agency activities.
(2) Classification B: Unloading of fish. This classification shall
include the unloading of raw and/or frozen fish from vessels.
(3) Classification C: All other activities. This classification
shall include all other activities in the shipping and transportation
industry.
(e) Construction. This industry shall include all construction,
reconstruction, structural renovation and demolition, on public or
private account, of buildings, housing, highways and streets,
catchments, dams, and any other structure.
(f) Retailing, wholesaling and warehousing. This industry includes
all activities in connection with the selling of goods or services at
retail, including the operation of retail stores and other retail
establishments, the wholesaling and warehousing and other distribution
of commodities including but without limitation the wholesaling,
warehousing and other distribution activities of jobbers, importers and
exporters, manufacturers' sales branches and sales offices engaged in
the distribution of products manufactured outside of American Samoa,
industrial distributors, mail order establishments, brokers and agents,
and public warehouses: Provided, however, that this industry shall not
include retailing and wholesaling activities included within other
industry wage orders which are applicable in American Samoa.
(g) Bottling, brewing and dairy products. The bottling, brewing and
dairy products industry includes the bottling, sale and distribution of
malt beverages and soft drinks in bottles and other containers and the
processing or recombining of fluid milk and cream for wholesale and
retail distribution and the manufacture of malt beverages, butter,
natural and processed cheese, condensed and evaporated milk, malted
milk, ice cream and frozen desserts; including also any warehousing
operation incidental to the above activities of firms engaged in these
activities.
(h) Printing. 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 who publishes a
newspaper, magazine, or similar publications.
(i) Publishing. This 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.
(j) Finance and insurance. The finance and insurance industry
includes all banks (whether privately or government owned in whole or
in part) and trust companies, credit agencies other than banks, holding
companies, other investment companies, collection agencies, brokers and
dealers in securities and commodity contracts, as well as carriers of
all types of insurance, and insurance agents and brokers.
(k) Ship maintenance. This industry is defined as all work activity
associated with ship repair and maintenance, including marine, railway,
and dry dock operation.
(l) Hotel. This industry shall include all activities in connection
with the operation of hotels (whether privately or government owned in
whole or in part), motels, apartment hotels, and tourist courts engaged
in providing lodging, with or without meals, for the general public,
including such laundry and cleaning and other activities as are engaged
in by a hotel or motel or other lodging facility on its own linens or
on garments of its guests.
(m) Tour and travel services. This industry shall include the
operation of tourist bureaus and of travel and passenger ticket
services and agencies: Provided, however, that this industry shall not
include the operation of a freight-shipping agency.
(n) Private hospitals and educational institutions. This industry
shall include all activities performed in connection with the operation
of private hospitals, nursing homes, and related institutions primarily
engaged in the care of the sick, the aged or the mentally or physically
disabled or for gifted children, preschools, elementary or secondary
schools, or institutions of higher education: Provided, however, that
this industry shall not include employees of the Government of American
Samoa or employees of any agency or corporation of the Government of
American Samoa.
(o) Garment manufacturing. This 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
the following 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 industry does
not include manufacturing, processing or mending of apparel in retail
or service establishments, including clothing stores, laundries, and
other stores.
(p) Miscellaneous activities. This industry shall include every
activity not included in any other industry defined herein.
3. Sections 697.2 and 697.3 are redesignated as Sec. 697.3 and
Sec. 697.4.
4. A new Sec. 697.2 is added to read as follows:
Sec. 697.2 Industry wage rates and effective dates.
Every employer shall pay to each of his employees in American
Samoa, who in any workweek is engaged in commerce or in the production
of goods for commerce, or is employed in any enterprise engaged in
commerce or in the production of goods for commerce, as these terms are
defined in section 3 of the Fair Labor Standards Act of 1938, wages at
a rate not less than the minimum rate or rates of wages prescribed in
this section for the industries and classifications in which such
employee is engaged.
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Effective dates
Industry -----------------------------------------------
Sept. 11, 2001 Oct. 1, 2001 Oct. 1, 2002
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(a) Government Employees........................................ $2.69 $2.73 $2.77
(b) Fish Canning and Processing................................. 3.26 3.26 3.26
(c) Petroleum Marketing......................................... 3.78 3.82 3.85
(d) Shipping and Transportation:
(1) Classification A........................................ 3.97 4.03 4.09
(2) Classification B........................................ 3.81 3.87 3.92
(3) Classification C........................................ 3.77 3.83 3.88
(e) Construction................................................ 3.50 3.55 3.60
(f) Retailing, Wholesaling, and Warehousing..................... 3.01 3.06 3.10
(g) Bottling, Brewing, and Dairy Products....................... 3.10 3.15 3.19
(h) Printing.................................................... 3.40 3.45 3.50
(i) Publishing.................................................. 3.53 3.58 3.63
(j) Finance and Insurance....................................... 3.88 3.94 3.99
(k) Ship Maintenance............................................ 3.25 3.30 3.34
(l) Hotel....................................................... 2.78 2.82 2.86
(m) Tour and Travel Services.................................... 3.22 3.27 3.31
(n) Private Hospitals and Educational Institutions.............. 3.24 3.29 3.33
(o) Garment Manufacturing....................................... 2.60 2.64 2.68
(p) Miscellaneous Activities.................................... 2.50 2.54 2.57
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5. Redesignated Sec. 697.3 is amended to remove the word
``Sec. 697.1'' wherever it appears and add, in its place, the word
``Sec. 697.2''.
6. Redesignated Sec. 697.4 is amended to remove the phrase
``September 20, 1999'' and add, in its place, the phrase ``September
11, 2001.''
[FR Doc. 01-21577 Filed 8-24-01; 8:45 am]
BILLING CODE 4510-27-P
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