[Federal Register Volume 66, Number 166 (Monday, August 27, 2001)]
[Rules and Regulations]
[Pages 44967-44969]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-21577]


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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.

[[Page 44968]]

    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.

[[Page 44969]]

    (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