[Federal Register Volume 64, Number 171 (Friday, September 3, 1999)]
[Rules and Regulations]
[Pages 48524-48525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23015]



[[Page 48523]]

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Part V





Department of Labor





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Wage and Hour Division



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29 CFR Part 697



Industries in American Samoa; Wage Order; Final Rule

  Federal Register / Vol. 64, No. 171 / Friday, September 3, 1999 / 
Rules and Regulations  

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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. 23 which met in Pago Pago, American Samoa, during the week of June 
7, 1999.

Dates: This rule shall become effective on September 20, 1999.
    Applicability date: The new minimum wage rates are effective on 
September 20, 1999, 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, DC 20210: 
telephone (202) 693-0072. 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 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. 664 (64 FR 13822), the Secretary 
of Labor appointed and convened Industry Committee No. 23 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 Committee also corrected a typographical error 
that previously appeared in the definition of shipping and 
transportation. 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. 23.

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. 23 which met in Pago Pago, American Samoa during 
the week of June 7, 1999. The Committee recommended increases over two 
years in various industry categories; ranging from 3 cents per hour for 
the bottling, brewing, and dairy products industry; to 12 cents per 
hour over two years for the government employees industry.
    When these increases are fully implemented, wage rates will range 
from $2.50 an hour (miscellaneous activities) to $3.97 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 1999 and/or 2000, 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 very modest--approximately $618,000 in 1999 and $1.4 
million (cumulative) in 2000. 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 section 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 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 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.

[[Page 48525]]

Document Preparation

    This document was prepared under the direction and control of John 
R. Fraser, Deputy 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, DC this 30th day of August, 1999.
Bernard E. Anderson,
Assistant Secretary, Employment Standards Administration.
    Accordingly, part 697 of Chapter V of Title 29, Code of Federal 
Regulations is amended as follows:

PART 697--INDUSTRIES IN AMERICAN SAMOA

    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) 
and (2), (c)(1), (d)(1), (e)(1), (f)(1), (g)(1), (h)(1), (i)(1), 
(j)(1), (k)(1), (l)(1), (m)(1), (n)(1); (o)(1) and (p)(1) 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 $3.17 an hour effective October 
27, 1998, and $3.20 an hour effective September 20, 2000.
* * * * *
    (b) Shipping and transportation industry. (1) The minimum wage for 
classification A, stevedoring, lighterage and maritime shipping agency 
activities, is $3.92 an hour effective September 20, 1999 and $3.97 an 
hour effective September 20, 2000. The minimum wage for classification 
B, unloading of fish, is $3.76 an hour effective October 27, 1998, and 
$3.81 an hour effective September 20, 2000. The minimum wage for 
classification C, all other activities, is $3.72 an hour effective 
October 27, 1998, and $3.77 an hour effective September 20, 2000.
    (2) 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 in 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:
    (i) 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.
    (ii) Classification B: Unloading of fish. This classification shall 
include the unloading of raw and/or frozen fish from vessels.
    (iii) Classification C: All other activities. This classification 
shall include all other activities in the shipping and transportation 
industry.
    (c) Tour and travel service industry. (1) The minimum wage for this 
industry is $3.22 an hour effective October 27, 1998.
* * * * *
    (d) Petroleum marketing industry. (1) The minimum wage for this 
industry is $3.73 an hour effective October 27, 1998, and $3.78 an hour 
effective September 20, 2000.
* * * * *
    (e) Construction industry. (l) The minimum wage for this industry 
is $3.45 an hour effective on September 20, 1999, and $3.50 an hour 
effective September 20, 2000.
* * * * *
    (f) Hotel industry. (1) The minimum wage for this industry is $2.78 
an hour effective October 27, 1998.
* * * * *
    (g) Retailing, wholesaling and warehousing industry. (1) The 
minimum wage for this industry is $2.97 an hour effective September 20, 
1999, and $3.01 an hour effective September 20, 2000.
* * * * *
    (h) Ship maintenance industry. (1) The minimum wage for this 
industry is $3.20 an hour effective October 27, 1998, and $3.25 an hour 
effective September 20, 2000.
* * * * *
    (i) Bottling, brewing and dairy products industry (1) The minimum 
wage for this industry is $3.07 an hour effective October 27, 1998, and 
$3.10 an hour effective September 20, 2000.
* * * * *
    (j) Printing industry. (1) The minimum wage for the printing 
industry is $3.37 an hour effective September 20, 1999, and $3.40 an 
hour effective September 20, 2000.
* * * * *
    (k) Finance and insurance industry. (1) The minimum wage for this 
industry is $3.83 an hour effective September 20, 1999, and $3.88 an 
hour effective September 20, 2000.
* * * * *
    (l) Private hospitals and educational institutions. (1) The minimum 
wage for this industry is $3.24 an hour effective October 27, 1998.
* * * * *
    (m) Government employees industry. (1) The minimum wage for this 
industry is $2.63 an hour effective September 20, 1999, and $2.69 an 
hour effective September 20, 2000.
* * * * *
    (n) Miscellaneous activities industry. (1) The minimum wage for 
this industry is $2.45 an hour effective July 1, 1996, and $2.50 an 
hour effective September 20, 2000.
* * * * *
    (o) Garment manufacturing industry. (1) The minimum wage for this 
industry is $2.55 an hour effective October 27, 1998, and $2.60 an hour 
effective September 20, 2000.
* * * * *
    (p) Publishing industry. (1) The minimum wage for the publishing 
industry is $3.48 an hour effective September 20, 1999, and $3.53 an 
hour effective September 20, 2000.
    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 
September 20, 1999, except as otherwise specified.

[FR Doc. 99-23015 Filed 9-2-99; 8:45 am]
BILLING CODE 4510-27-P