HOUSE AMENDED
        PRIOR PRINTER'S NOS. 1492, 1885, 1887,        PRINTER'S NO. 1973
        1913, 1957

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1090 Session of 2006


        INTRODUCED BY TARTAGLIONE, HUGHES, COSTA, FERLO, FONTANA, FUMO,
           KASUNIC, KITCHEN, LAVALLE, LOGAN, MELLOW, MUSTO, O'PAKE,
           STACK, STOUT, WASHINGTON, A. WILLIAMS, C. WILLIAMS, WOZNIAK,
           BOSCOLA, BROWNE, CONTI, PILEGGI, RAFFERTY AND TOMLINSON,
           JANUARY 31, 2006

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 30, 2006

                                     AN ACT

     1  Amending the act of January 17, 1968 (P.L.11, No.5), entitled     <--
     2     "An act establishing a fixed minimum wage and overtime rates
     3     for employes, with certain exceptions; providing for minimum
     4     rates for learners and apprentices; creating a Minimum Wage
     5     Advisory Board and defining its powers and duties; conferring
     6     powers and imposing duties upon the Department of Labor and
     7     Industry; imposing duties on employers; and providing
     8     penalties," giving effect to Federal changes in wage rates;
     9     providing for preemption; and making editorial changes.
    10  AMENDING THE ACT OF JANUARY 17, 1968 (P.L.11, NO.5), ENTITLED     <--
    11     "AN ACT ESTABLISHING A FIXED MINIMUM WAGE AND OVERTIME RATES
    12     FOR EMPLOYES, WITH CERTAIN EXCEPTIONS; PROVIDING FOR MINIMUM
    13     RATES FOR LEARNERS AND APPRENTICES; CREATING A MINIMUM WAGE
    14     ADVISORY BOARD AND DEFINING ITS POWERS AND DUTIES; CONFERRING
    15     POWERS AND IMPOSING DUTIES UPON THE DEPARTMENT OF LABOR AND
    16     INDUSTRY; IMPOSING DUTIES ON EMPLOYERS; AND PROVIDING
    17     PENALTIES," GIVING EFFECT TO FEDERAL CHANGES IN WAGE RATES;
    18     PROVIDING FOR PREEMPTION; AND MAKING EDITORIAL CHANGES.

    19     The General Assembly of the Commonwealth of Pennsylvania
    20  hereby enacts as follows:
    21     Section 1.  Section 3 of the act of January 17, 1968 (P.L.11,  <--
    22  No.5), known as The Minimum Wage Act of 1968, amended December
    23  15, 1988 (P.L.1232, No.150), and December 21, 1998 (P.L.1290,

     1  No.168), is amended to read:
     2     Section 3.  Definitions.--As used in this act:
     3     (a)  "Secretary" means the Secretary of Labor and Industry.
     4     (b)  "Department" means the Department of Labor and Industry.
     5     (c)  "Board" means the Minimum Wage Advisory Board created by
     6  this act.
     7     (d)  "Wages" mean compensation due to any employe by reason
     8  of his or her employment, payable in legal tender of the United
     9  States or checks on banks convertible into cash on demand at
    10  full face value, subject to such deductions, charges or
    11  allowances as may be permitted by regulations of the secretary
    12  under section 9.
    13     "Wage" paid to any employe includes the reasonable cost, as
    14  determined by the secretary, to the employer for furnishing such
    15  employe with board, lodging, or other facilities, if such board,
    16  lodging, or other facilities are customarily furnished by such
    17  employer to his or her employes: Provided, That the cost of
    18  board, lodging, or other facilities shall not be included as a
    19  part of the wage paid to any employe to the extent it is
    20  excluded therefrom under the terms of a bona fide collective-
    21  bargaining agreement applicable to the particular employe:
    22  Provided, further, That the secretary is authorized to determine
    23  the fair value of such board, lodging, or other facilities for
    24  defined classes of employes and in defined areas, based on
    25  average cost to the employer or to groups of employers similarly
    26  situated, or average value to groups of employes, or other
    27  appropriate measures of fair value. Such evaluations, where
    28  applicable and pertinent, shall be used in lieu of actual
    29  measure of cost in determining the wage paid to any employe.
    30     In determining the hourly wage an employer is required to pay
    20060S1090B1973                  - 2 -     

     1  a tipped employe, the amount paid such employe by his or her
     2  employer shall be an amount equal to: (i) the cash wage paid the
     3  employe which for the purposes of the determination shall be not
     4  less than the cash wage required to be paid the employe on the
     5  date immediately prior to the effective date of this
     6  subparagraph; and (ii) an additional amount on account of the
     7  tips received by the employe which is equal to the difference
     8  between the wage specified in subparagraph (i) and the wage in
     9  effect under section 4 of this act. The additional amount on
    10  account of tips may not exceed the value of tips actually
    11  received by the employe. The previous sentence shall not apply
    12  with respect to any tipped employe unless:
    13     (1)  Such employe has been informed by the employer of the
    14  provisions of this subsection;
    15     (2)  All tips received by such employe have been retained by
    16  the employe and shall not be surrendered to the employer to be
    17  used as wages to satisfy the requirement to pay the current
    18  hourly minimum rate in effect; where the gratuity is added to
    19  the charge made by the establishment, either by the management,
    20  or by the customer, the gratuity shall become the property of
    21  the employe; except that this subsection shall not be construed
    22  to prohibit the pooling of tips among employes who customarily
    23  and regularly receive tips.
    24     (e)  "Occupation" means any industry, trade, business,
    25  service, or employment or class or group thereof in which
    26  individuals are gainfully employed.
    27     (f)  "Employe" includes to suffer or to permit to work.
    28     (g)  "Employer" includes any individual, partnership,
    29  association, corporation, business trust, or any person or group
    30  of persons acting, directly or indirectly, in the interest of an
    20060S1090B1973                  - 3 -     

     1  employer in relation to any employe.
     2     (h)  "Employe" includes any individual employed by an
     3  employer.
     4     (i)  "Gratuities" means voluntary, monetary contributions
     5  received by an employe from a guest, patron or customer for
     6  services rendered.
     7     Section 2.  Section 4 of the act, amended December 10, 1974
     8  (P.L.916, No.303), July 1, 1978 (P.L.735, No.135), December 15,
     9  1988 (P.L.1232, No.150), and July 9, 1990 (P.L.348, No.79), is
    10  amended to read:
    11     Section 4.  Minimum Wages.--Except as may otherwise be
    12  provided under this act:
    13     (a)  Every employer shall pay to each of his or her employes
    14  wages for all hours worked at a rate of not less than:
    15     (1)  Two dollars sixty-five cents ($2.65) an hour upon the
    16  effective date of this amendment.
    17     (2)  Two dollars ninety cents ($2.90) an hour during the year
    18  beginning January 1, 1979.
    19     (3)  Three dollars ten cents ($3.10) an hour during the year
    20  beginning January 1, 1980.
    21     (4)  Three dollars thirty-five cents ($3.35) an hour after
    22  December 31, 1980.
    23     (5)  Three dollars seventy cents ($3.70) an hour beginning
    24  February 1, 1989[, and thereafter].
    25     (6)  Five dollars fifteen cents ($5.15) an hour beginning
    26  September 1, 1997.
    27     (7)  Six dollars twenty-five cents ($6.25) an hour beginning
    28  January 1, 2007.
    29     (8)  Seven dollars fifteen cents ($7.15) an hour beginning
    30  July 1, 2007.
    20060S1090B1973                  - 4 -     

     1     (a.1)  If the minimum wage set forth in the Fair Labor
     2  Standards Act of 1938 (52 Stat. 1060, 29 U.S.C.  201 et seq.)
     3  is increased above [three dollars thirty-five cents ($3.35) an
     4  hour] the minimum wage required under this section, the minimum
     5  wage required under this section shall be increased by the same
     6  amounts and effective the same date as the increases under the
     7  Fair Labor Standards Act, and the provisions of subsection (a)
     8  are suspended to the extent they differ from those set forth
     9  under the Fair Labor Standards Act.
    10     (b)  The secretary, to the extent necessary to prevent
    11  curtailment of employment opportunities, shall by regulations
    12  provide for the employment of learners and students, under
    13  special certificates at wages lower than the minimum wage
    14  applicable under this section, and subject to such limitations
    15  as to number, proportion and length of service as the secretary
    16  shall prescribe: Provided, That the minimum wage prescribed
    17  under this subsection (b) shall not be less than eighty-five
    18  percent of the otherwise applicable wage rate in effect under
    19  section 4. A special certificate issued under this subsection
    20  shall provide that for six or less students for whom it is
    21  issued shall, except during vacation periods, be employed on a
    22  part-time basis and not in excess of twenty hours in any
    23  workweek at a sub-minimum rate.
    24     In the case of an employer who intends to employ seven or
    25  more students, at a sub-minimum rate, the secretary may issue a
    26  special certificate only if the employer certifies to the
    27  secretary that employment of such students will not create a
    28  substantial probability of reducing the full-time employment
    29  opportunities for other workers.
    30     (c)  Employes shall be paid for overtime not less than one
    20060S1090B1973                  - 5 -     

     1  and one-half times the employe's regular rate as prescribed in
     2  regulations promulgated by the secretary: Provided, That
     3  students employed in seasonal occupations as defined and
     4  delimited by regulations promulgated by the secretary may, by
     5  such regulations, be excluded from the overtime provisions of
     6  this act: And provided further, That the secretary shall
     7  promulgate regulations with respect to overtime subject to the
     8  limitations that no pay for overtime in addition to the regular
     9  rate shall be required except for hours in excess of forty hours
    10  in a workweek.
    11     (d)  An employe whose earning capacity is impaired by
    12  physical or mental deficiency or injury may be paid less than
    13  the applicable minimum wage if either a license specifying a
    14  wage rate commensurate with the employe's productive capacity
    15  has been obtained by the employer from the secretary or a
    16  Federal certificate is obtained under section 14(c) of the Fair
    17  Labor Standards Act of 1938 (52 Stat. 1060, 29 U.S.C.  201 et
    18  seq.). A license obtained from the secretary shall be granted
    19  only upon joint application of employer and employe.
    20     (e)  In lieu of the minimum wage prescribed in subsection (a)
    21  and section 5(c) and notwithstanding subsections (b) and (d), an  <--
    22  employer may, during the first sixty calendar days when an
    23  employe under the age of twenty years is initially employed, pay
    24  the employe training wages at a rate of not less than the
    25  minimum wage set forth in section 6(a) of the Fair Labor
    26  Standards Act (29 U.S.C.  206(a)). A person employed at the
    27  training wage under this subsection shall be informed of the
    28  amount of the training wage and the right to receive the full
    29  minimum wage, or a higher wage, upon completion of the training
    30  period. No employer may take any action to displace existing
    20060S1090B1973                  - 6 -     

     1  employes, including partial displacements such as reduction in
     2  the hours, wages or employment benefits of existing employes,
     3  for purposes of hiring individuals at the training wage
     4  authorized by this subsection.
     5     Section 3.  Section 5 of the act, amended December 10, 1974
     6  (P.L.916, No.303), July 1, 1978 (P.L.735, No.135), December 15,
     7  1988 (P.L.1232, No.150), and July 9, 1990 (P.L.348, No.79), is
     8  amended to read:
     9     Section 5.  Exemptions.--(a)  Employment in the following
    10  classifications shall be exempt from both the minimum wage and
    11  overtime provisions of this act:
    12     (1)  Labor on a farm;
    13     (2)  Domestic services in or about the private home of the
    14  employer;
    15     (3)  Delivery of newspapers to the consumer;
    16     (4)  In connection with the publication of any weekly,
    17  semiweekly, or daily newspaper with a circulation of less than
    18  four thousand, the major part of which circulation is within the
    19  county where published or counties contiguous thereto;
    20     (5)  In a bona fide executive, administrative, or
    21  professional capacity (including any employe employed in the
    22  capacity of academic administrative personnel or teacher in
    23  elementary or secondary schools) or in the capacity of outside
    24  salesman (as such terms are defined and delimited from time to
    25  time by regulations of the secretary, except that an employe of
    26  a retail or service establishment shall not be excluded from the
    27  definition of employe employed in a bona fide executive or
    28  administrative capacity because of the number of hours in his or
    29  her workweek which he or she devotes to activities not directly
    30  or closely related to the performance of executive
    20060S1090B1973                  - 7 -     

     1  administrative activities, if less than forty percent of his or
     2  her hours worked in the workweek are devoted to such
     3  activities);
     4     (6)  In the activities of an educational, charitable,
     5  religious or nonprofit organization where the employer-employe
     6  relationship does not in fact exist or where the services are
     7  rendered to such organization gratuitously;
     8     (7)  In seasonal employment, if the employe is under eighteen
     9  years of age, or if a student under twenty-four years of age, by
    10  a nonprofit health or welfare agency engaged in activities
    11  dealing with handicapped or exceptional children or by a
    12  nonprofit day or resident seasonal recreational camp for campers
    13  under the age of eighteen years, which operates for a period of
    14  less than three months in any one year;
    15     (9)  In employment by an establishment which is a public
    16  amusement or recreational establishment, organized camp, or
    17  religious or nonprofit educational conference center, if (i) it
    18  does not operate for more than seven months in any calendar
    19  year, or (ii) during the preceding calendar year, its average
    20  receipts for any six months of such year were not more than
    21  thirty-three and one-third percent of its average receipts for
    22  the other six months of such year;
    23     (10)  Golf caddy;
    24     (11)  In employment as a switchboard operator employed by an
    25  independently owned public telephone company which has not more
    26  than seven hundred and fifty stations;
    27     (12)  Employes not subject to civil service laws who hold
    28  elective office or are on the personal staff of such an
    29  officeholder, are immediate advisers to him or her, or are
    30  appointed by him or her to serve on a policy-making level.
    20060S1090B1973                  - 8 -     

     1     (b)  Employment in the following classifications shall be
     2  exempt from the overtime provisions of this act:
     3     (1)  Seaman;
     4     (2)  Any salesman, partsman, or mechanic primarily engaged in
     5  selling and servicing automobiles, trailers, trucks, farm
     6  implements, or aircraft if employed by a nonmanufacturing
     7  establishment primarily engaged in the business of selling such
     8  vehicles to ultimate purchasers;
     9     (3)  Any driver employed by an employer engaged in the
    10  business of operating taxicabs;
    11     (4)  Any employe employed as an announcer, news editor, or
    12  chief engineer by a radio or television station, the major
    13  studio of which is located (i) in a city or town of one hundred
    14  thousand population or less, according to the latest available
    15  decennial census figures as compiled by the Bureau of the
    16  Census, except where such city or town is part of a standard
    17  metropolitan statistical area, as defined and designated by the
    18  Bureau of the Budget, which has a total population in excess of
    19  one hundred thousand, or (ii) in a city or town of twenty-five
    20  thousand population or less, which is part of such an area but
    21  is at least forty airline miles from the principal city in such
    22  area;
    23     (5)  Any employe engaged in the processing of maple sap into
    24  sugar (other than refined sugar) or syrup;
    25     (6)  Employment by an establishment which is a motion picture
    26  theatre;
    27     (7)  Any employe of a motor carrier with respect to whom the
    28  Federal Secretary of Transportation has power to establish
    29  qualifications and maximum hours of service under 49 U.S.C. 
    30  3102(b)(1) and (2) (relating to requirements for qualifications,
    20060S1090B1973                  - 9 -     

     1  hours of service, safety and equipment standards).
     2     (c)  (1)  Notwithstanding the provisions of subsection (a)(7)
     3  and (8), an employer unless otherwise exempt from the minimum
     4  wage provisions of section 4(a)(6) whose employe complement is
     5  composed of the equivalent of ten full-time employes to be
     6  calculated on a forty-hour workweek shall pay:
     7     (i)  Five dollars sixty-five cents ($5.65) an hour beginning
     8  January 1, 2007.
     9     (ii)  Six dollars sixty-five cents ($6.65) an hour beginning
    10  July 1, 2007.
    11     (2)  Such employer shall pay the full amount of the minimum
    12  wage under section 4(a)(8) beginning July 1, 2008.
    13     Section 4.  Sections 6, 7, 8 and 9 of the act are amended to
    14  read:
    15     Section 6.  Minimum Wage Advisory Board.--(a)  There is
    16  hereby created in the Department of Labor and Industry a Minimum
    17  Wage Advisory Board consisting of nine members to be appointed
    18  by the secretary to assist him or her in carrying out his or her
    19  duties under this act, and for the purpose of conducting public
    20  hearings at the request of the secretary in order to recommend
    21  rules and regulations for the occupations covered within this
    22  act.
    23     (b)  Of the nine members, three shall be representatives of
    24  an established recognized association of labor organizations,
    25  three shall be representatives of an established recognized
    26  association of employers and three shall be members from the
    27  general public. The Secretary of Labor and Industry or his or
    28  her designated representative shall be chairman of the board.
    29     (c)  Each member of the board shall receive compensation of
    30  thirty dollars ($30) per day plus necessary expenses, for each
    20060S1090B1973                 - 10 -     

     1  day actually spent in the performance of his or her duties. No
     2  employe of the Commonwealth shall receive any additional
     3  compensation or expenses on account of his or her services under
     4  this act.
     5     (d)  At least ten days' public notice shall be given in the
     6  manner prescribed by the board prior to any public hearing of
     7  the board. Five members of the board shall constitute a quorum.
     8     (e)  The board shall have the power and duty to:
     9     (1)  consult with the secretary concerning any matter arising
    10  under the administration of this act and advise and assist him
    11  or her in carrying out the duties prescribed for him or her by
    12  section 8 of this act;
    13     (2)  conduct public hearings at the request of the secretary
    14  in order to develop rules and regulations in accordance with
    15  section 9 of this act, in which hearings due process of law
    16  shall be observed and any person may appear and be heard or file
    17  statements in support of his or her position;
    18     (3)  the board shall submit its report including
    19  recommendations for the promulgation of rules and regulations to
    20  the secretary, who shall within thirty days thereafter accept
    21  such report or refer it to the board for further consideration
    22  and consultation. If the report is referred to the board for
    23  further consideration, the secretary shall, in consultation with
    24  the board, modify, amend, or otherwise act upon such report
    25  within sixty days thereafter. Rules and regulations developed
    26  and promulgated hereunder shall be published and any person
    27  aggrieved thereby, shall have a right of review as set forth in
    28  section 10 of this act.
    29     Section 7.  Investigations.--(a)  The secretary or his or her
    30  representative shall have authority to investigate and ascertain
    20060S1090B1973                 - 11 -     

     1  the wages of persons employed in any occupation in the
     2  Commonwealth; enter and inspect the place of business or
     3  employment of any employer of employes in any occupation in the
     4  Commonwealth at any reasonable time, for the purpose of
     5  examining and inspecting any records of any such employer that
     6  in any way relate to wages, hours, or other conditions of
     7  employment of any such employes; copy any or all of such records
     8  as [he] the secretary or [his] an authorized representative may
     9  deem necessary or appropriate; require from such employer full
    10  and accurate statements in writing, at such times as the
    11  secretary may deem necessary, of the wages paid to all employes
    12  in his or her employment; and interrogate such persons for the
    13  purpose of ascertaining whether the provisions of this act and
    14  the regulations issued thereunder have been and are being
    15  complied with.
    16     Section 8.  Duty of Employer.--Every employer of employes
    17  shall keep a true and accurate record of the hours worked by
    18  each employe and the wages paid to each, and shall furnish to
    19  the secretary or his or her duly authorized representative, upon
    20  demand, a sworn statement of the same. Such records shall be
    21  open to inspection by any duly authorized representative of the
    22  secretary at any reasonable time and shall be preserved for a
    23  period of three years. Every employer subject to this act shall
    24  keep a summary of this act and any regulations issued thereunder
    25  applicable to him or her, posted in a conspicuous place where
    26  employes normally pass and can read it. Employers shall, upon
    27  request, be furnished copies of such summaries without charge.
    28  Employers shall permit any duly authorized representative of the
    29  secretary to interrogate any employe in the place of employment
    30  and during work hours with respect to the wages paid to and the
    20060S1090B1973                 - 12 -     

     1  hours worked by such employe or other employes.
     2     Section 9.  Enforcement; Rules and Regulations.--The
     3  secretary shall enforce this act. [He] The secretary shall make
     4  and, from time to time, revise regulations, with the assistance
     5  of the board, when requested by [him] the secretary, which shall
     6  be deemed appropriate to carry out the purposes of this act and
     7  to safeguard the minimum wage rates thereby established. Such
     8  regulations may include, but are not limited to, regulations
     9  defining and governing bona fide executive, administrative, or
    10  professional employes and outside [salesmen] sales persons,
    11  learners and apprentices, their number, proportion, length of
    12  learning period, and other working conditions; handicapped
    13  workers; part-time pay; overtime standards; bonuses; allowances
    14  for board, lodging, apparel, or other facilities or services
    15  customarily furnished by employers to employes; allowances for
    16  gratuities; or allowances for such other special conditions or
    17  circumstances which may be incidental to a particular employer-
    18  employe relationship.
    19     Section 5.  Section 12 of the act, amended December 10, 1974
    20  (P.L.916, No.303), is amended to read:
    21     Section 12.  Penalties.--(a)  Any employer and his or her
    22  agent, or the officer or agent of any corporation, who
    23  discharges or in any other manner discriminates against any
    24  employe because such employe has testified or is about to
    25  testify before the secretary or his or her representative in any
    26  investigation or proceeding under or related to this act, or
    27  because such employer believes that said employe may so testify
    28  shall, upon conviction thereof in a summary proceeding, be
    29  sentenced to pay a fine of not less than five hundred dollars
    30  ($500) nor more than one thousand dollars ($1,000), and in
    20060S1090B1973                 - 13 -     

     1  default of the payment of such fine and costs, shall be
     2  sentenced to imprisonment for not less than ten days nor more
     3  than ninety days.
     4     (b)  Any employer or the officer or agent of any corporation
     5  who pays or agrees to pay any employe less than the rates
     6  applicable to such employe under this act shall, upon conviction
     7  thereof in a summary proceeding, be sentenced to pay a fine of
     8  not less than seventy-five dollars ($75) nor more than three
     9  hundred dollars ($300) or to undergo imprisonment of not less
    10  than ten nor more than sixty days, or both. Each week in which
    11  such employe is paid less than the rate applicable to him or her
    12  under this act and for each employe who is paid less than the
    13  prescribed rate, a separate offense shall be deemed to occur.
    14  Any agreement between the employer and the employe to work for
    15  less than the applicable wage rate shall be no defense to action
    16  by the Commonwealth under this section.
    17     (c)  Any employer or the officer or agent of any corporation
    18  who violates any other provision of this act or of any
    19  regulation issued thereunder shall, upon conviction thereof in a
    20  summary proceeding, be sentenced to pay a fine of not less than
    21  one hundred dollars ($100) nor more than five hundred dollars
    22  ($500), and each day of such failure to comply with this act or
    23  regulation, shall constitute a separate offense.
    24     Section 6.  The act is amended by adding a section to read:
    25     Section 14.1.  Preemption.--(a)  Except as set forth in
    26  subsection (b), this act shall preempt and supersede any local
    27  ordinance or rule concerning the subject matter of this act.
    28     (b)  This section does not prohibit local regulation pursuant
    29  to an ordinance which was adopted by a municipality prior to
    30  January 1, 2006, and which remained in effect on January 1,
    20060S1090B1973                 - 14 -     

     1  2006.
     2     Section 7.  All acts and parts of acts are repealed insofar
     3  as they are inconsistent with the addition of section 14.1 of
     4  the act.
     5     Section 8.  This act shall apply as follows:
     6         (1)  The addition of section 14.1 of the act shall not
     7     invalidate any ordinance, charter provision, resolution, rule
     8     or regulation in effect on the effective date of this
     9     section.
    10         (2)  The following provisions shall apply to contracts
    11     entered into or renewed on or after the effective date of
    12     this section:
    13             (i)  The addition of section 14.1 of the act.
    14             (ii)  Section 7 of this act.
    15     Section 9.  This act shall take effect immediately.
    16     SECTION 1.  SECTION 3 OF THE ACT OF JANUARY 17, 1968 (P.L.11,  <--
    17  NO.5), KNOWN AS THE MINIMUM WAGE ACT OF 1968, AMENDED DECEMBER
    18  15, 1988 (P.L.1232, NO.150), AND DECEMBER 21, 1998 (P.L.1290,
    19  NO.168), IS AMENDED TO READ:
    20     SECTION 3.  DEFINITIONS.--AS USED IN THIS ACT:
    21     (A)  "SECRETARY" MEANS THE SECRETARY OF LABOR AND INDUSTRY.
    22     (B)  "DEPARTMENT" MEANS THE DEPARTMENT OF LABOR AND INDUSTRY.
    23     (C)  "BOARD" MEANS THE MINIMUM WAGE ADVISORY BOARD CREATED BY
    24  THIS ACT.
    25     (D)  "WAGES" MEAN COMPENSATION DUE TO ANY EMPLOYE BY REASON
    26  OF HIS OR HER EMPLOYMENT, PAYABLE IN LEGAL TENDER OF THE UNITED
    27  STATES OR CHECKS ON BANKS CONVERTIBLE INTO CASH ON DEMAND AT
    28  FULL FACE VALUE, SUBJECT TO SUCH DEDUCTIONS, CHARGES OR
    29  ALLOWANCES AS MAY BE PERMITTED BY REGULATIONS OF THE SECRETARY
    30  UNDER SECTION 9.
    20060S1090B1973                 - 15 -     

     1     "WAGE" PAID TO ANY EMPLOYE INCLUDES THE REASONABLE COST, AS
     2  DETERMINED BY THE SECRETARY, TO THE EMPLOYER FOR FURNISHING SUCH
     3  EMPLOYE WITH BOARD, LODGING, OR OTHER FACILITIES, IF SUCH BOARD,
     4  LODGING, OR OTHER FACILITIES ARE CUSTOMARILY FURNISHED BY SUCH
     5  EMPLOYER TO HIS OR HER EMPLOYES: PROVIDED, THAT THE COST OF
     6  BOARD, LODGING, OR OTHER FACILITIES SHALL NOT BE INCLUDED AS A
     7  PART OF THE WAGE PAID TO ANY EMPLOYE TO THE EXTENT IT IS
     8  EXCLUDED THEREFROM UNDER THE TERMS OF A BONA FIDE COLLECTIVE-
     9  BARGAINING AGREEMENT APPLICABLE TO THE PARTICULAR EMPLOYE:
    10  PROVIDED, FURTHER, THAT THE SECRETARY IS AUTHORIZED TO DETERMINE
    11  THE FAIR VALUE OF SUCH BOARD, LODGING, OR OTHER FACILITIES FOR
    12  DEFINED CLASSES OF EMPLOYES AND IN DEFINED AREAS, BASED ON
    13  AVERAGE COST TO THE EMPLOYER OR TO GROUPS OF EMPLOYERS SIMILARLY
    14  SITUATED, OR AVERAGE VALUE TO GROUPS OF EMPLOYES, OR OTHER
    15  APPROPRIATE MEASURES OF FAIR VALUE. SUCH EVALUATIONS, WHERE
    16  APPLICABLE AND PERTINENT, SHALL BE USED IN LIEU OF ACTUAL
    17  MEASURE OF COST IN DETERMINING THE WAGE PAID TO ANY EMPLOYE.
    18     IN DETERMINING THE HOURLY WAGE AN EMPLOYER IS REQUIRED TO PAY
    19  A TIPPED EMPLOYE, THE AMOUNT PAID SUCH EMPLOYE BY HIS OR HER
    20  EMPLOYER SHALL BE AN AMOUNT EQUAL TO: (I) THE CASH WAGE PAID THE
    21  EMPLOYE WHICH FOR THE PURPOSES OF THE DETERMINATION SHALL BE NOT
    22  LESS THAN THE CASH WAGE REQUIRED TO BE PAID THE EMPLOYE ON THE
    23  DATE IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF THIS
    24  SUBPARAGRAPH; AND (II) AN ADDITIONAL AMOUNT ON ACCOUNT OF THE
    25  TIPS RECEIVED BY THE EMPLOYE WHICH IS EQUAL TO THE DIFFERENCE
    26  BETWEEN THE WAGE SPECIFIED IN SUBPARAGRAPH (I) AND THE WAGE IN
    27  EFFECT UNDER SECTION 4 OF THIS ACT. THE ADDITIONAL AMOUNT ON
    28  ACCOUNT OF TIPS MAY NOT EXCEED THE VALUE OF TIPS ACTUALLY
    29  RECEIVED BY THE EMPLOYE. THE PREVIOUS SENTENCE SHALL NOT APPLY
    30  WITH RESPECT TO ANY TIPPED EMPLOYE UNLESS:
    20060S1090B1973                 - 16 -     

     1     (1)  SUCH EMPLOYE HAS BEEN INFORMED BY THE EMPLOYER OF THE
     2  PROVISIONS OF THIS SUBSECTION;
     3     (2)  ALL TIPS RECEIVED BY SUCH EMPLOYE HAVE BEEN RETAINED BY
     4  THE EMPLOYE AND SHALL NOT BE SURRENDERED TO THE EMPLOYER TO BE
     5  USED AS WAGES TO SATISFY THE REQUIREMENT TO PAY THE CURRENT
     6  HOURLY MINIMUM RATE IN EFFECT; WHERE THE GRATUITY IS ADDED TO
     7  THE CHARGE MADE BY THE ESTABLISHMENT, EITHER BY THE MANAGEMENT,
     8  OR BY THE CUSTOMER, THE GRATUITY SHALL BECOME THE PROPERTY OF
     9  THE EMPLOYE; EXCEPT THAT THIS SUBSECTION SHALL NOT BE CONSTRUED
    10  TO PROHIBIT THE POOLING OF TIPS AMONG EMPLOYES WHO CUSTOMARILY
    11  AND REGULARLY RECEIVE TIPS.
    12     (E)  "OCCUPATION" MEANS ANY INDUSTRY, TRADE, BUSINESS,
    13  SERVICE, OR EMPLOYMENT OR CLASS OR GROUP THEREOF IN WHICH
    14  INDIVIDUALS ARE GAINFULLY EMPLOYED.
    15     (F)  "EMPLOYE" INCLUDES TO SUFFER OR TO PERMIT TO WORK.
    16     (G)  "EMPLOYER" INCLUDES ANY INDIVIDUAL, PARTNERSHIP,
    17  ASSOCIATION, CORPORATION, BUSINESS TRUST, OR ANY PERSON OR GROUP
    18  OF PERSONS ACTING, DIRECTLY OR INDIRECTLY, IN THE INTEREST OF AN
    19  EMPLOYER IN RELATION TO ANY EMPLOYE.
    20     (H)  "EMPLOYE" INCLUDES ANY INDIVIDUAL EMPLOYED BY AN
    21  EMPLOYER.
    22     (I)  "GRATUITIES" MEANS VOLUNTARY, MONETARY CONTRIBUTIONS
    23  RECEIVED BY AN EMPLOYE FROM A GUEST, PATRON OR CUSTOMER FOR
    24  SERVICES RENDERED.
    25     SECTION 2.  SECTIONS 4 AND 5 OF THE ACT, AMENDED DECEMBER 10,
    26  1974 (P.L.916, NO.303), JULY 1, 1978 (P.L.735, NO.135), DECEMBER
    27  15, 1988 (P.L.1232, NO.150), AND JULY 9, 1990 (P.L.348, NO.79),
    28  ARE AMENDED TO READ:
    29     SECTION 4.  MINIMUM WAGES.--EXCEPT AS MAY OTHERWISE BE
    30  PROVIDED UNDER THIS ACT:
    20060S1090B1973                 - 17 -     

     1     (A)  EVERY EMPLOYER SHALL PAY TO EACH OF HIS OR HER EMPLOYES
     2  WAGES FOR ALL HOURS WORKED AT A RATE OF NOT LESS THAN:
     3     (1)  TWO DOLLARS SIXTY-FIVE CENTS ($2.65) AN HOUR UPON THE
     4  EFFECTIVE DATE OF THIS AMENDMENT.
     5     (2)  TWO DOLLARS NINETY CENTS ($2.90) AN HOUR DURING THE YEAR
     6  BEGINNING JANUARY 1, 1979.
     7     (3)  THREE DOLLARS TEN CENTS ($3.10) AN HOUR DURING THE YEAR
     8  BEGINNING JANUARY 1, 1980.
     9     (4)  THREE DOLLARS THIRTY-FIVE CENTS ($3.35) AN HOUR AFTER
    10  DECEMBER 31, 1980.
    11     (5)  THREE DOLLARS SEVENTY CENTS ($3.70) AN HOUR BEGINNING
    12  FEBRUARY 1, 1989[, AND THEREAFTER].
    13     (6)  FIVE DOLLARS FIFTEEN CENTS ($5.15) AN HOUR BEGINNING
    14  SEPTEMBER 1, 1997.
    15     (7)  SIX DOLLARS TWENTY-FIVE CENTS ($6.25) AN HOUR BEGINNING
    16  JANUARY 1, 2007.
    17     (8)  SEVEN DOLLARS FIFTEEN CENTS ($7.15) AN HOUR BEGINNING
    18  JULY 1, 2007.
    19     (A.1)  IF THE MINIMUM WAGE SET FORTH IN THE FAIR LABOR
    20  STANDARDS ACT OF 1938 (52 STAT. 1060, 29 U.S.C.  201 ET SEQ.)
    21  IS INCREASED ABOVE [THREE DOLLARS THIRTY-FIVE CENTS ($3.35) AN
    22  HOUR] THE MINIMUM WAGE REQUIRED UNDER THIS SECTION, THE MINIMUM
    23  WAGE REQUIRED UNDER THIS SECTION SHALL BE INCREASED BY THE SAME
    24  AMOUNTS AND EFFECTIVE THE SAME DATE AS THE INCREASES UNDER THE
    25  FAIR LABOR STANDARDS ACT, AND THE PROVISIONS OF SUBSECTION (A)
    26  ARE SUSPENDED TO THE EXTENT THEY DIFFER FROM THOSE SET FORTH
    27  UNDER THE FAIR LABOR STANDARDS ACT.
    28     (B)  THE SECRETARY, TO THE EXTENT NECESSARY TO PREVENT
    29  CURTAILMENT OF EMPLOYMENT OPPORTUNITIES, SHALL BY REGULATIONS
    30  PROVIDE FOR THE EMPLOYMENT OF LEARNERS AND STUDENTS, UNDER
    20060S1090B1973                 - 18 -     

     1  SPECIAL CERTIFICATES AT WAGES LOWER THAN THE MINIMUM WAGE
     2  APPLICABLE UNDER THIS SECTION, AND SUBJECT TO SUCH LIMITATIONS
     3  AS TO NUMBER, PROPORTION AND LENGTH OF SERVICE AS THE SECRETARY
     4  SHALL PRESCRIBE: PROVIDED, THAT THE MINIMUM WAGE PRESCRIBED
     5  UNDER THIS SUBSECTION (B) SHALL NOT BE LESS THAN EIGHTY-FIVE
     6  PERCENT OF THE OTHERWISE APPLICABLE WAGE RATE IN EFFECT UNDER
     7  SECTION 4. A SPECIAL CERTIFICATE ISSUED UNDER THIS SUBSECTION
     8  SHALL PROVIDE THAT FOR SIX OR LESS STUDENTS FOR WHOM IT IS
     9  ISSUED SHALL, EXCEPT DURING VACATION PERIODS, BE EMPLOYED ON A
    10  PART-TIME BASIS AND NOT IN EXCESS OF TWENTY HOURS IN ANY
    11  WORKWEEK AT A SUB-MINIMUM RATE.
    12     IN THE CASE OF AN EMPLOYER WHO INTENDS TO EMPLOY SEVEN OR
    13  MORE STUDENTS, AT A SUB-MINIMUM RATE, THE SECRETARY MAY ISSUE A
    14  SPECIAL CERTIFICATE ONLY IF THE EMPLOYER CERTIFIES TO THE
    15  SECRETARY THAT EMPLOYMENT OF SUCH STUDENTS WILL NOT CREATE A
    16  SUBSTANTIAL PROBABILITY OF REDUCING THE FULL-TIME EMPLOYMENT
    17  OPPORTUNITIES FOR OTHER WORKERS.
    18     (C)  EMPLOYES SHALL BE PAID FOR OVERTIME NOT LESS THAN ONE
    19  AND ONE-HALF TIMES THE EMPLOYE'S REGULAR RATE AS PRESCRIBED IN
    20  REGULATIONS PROMULGATED BY THE SECRETARY: PROVIDED, THAT
    21  STUDENTS EMPLOYED IN SEASONAL OCCUPATIONS AS DEFINED AND
    22  DELIMITED BY REGULATIONS PROMULGATED BY THE SECRETARY MAY, BY
    23  SUCH REGULATIONS, BE EXCLUDED FROM THE OVERTIME PROVISIONS OF
    24  THIS ACT: AND PROVIDED FURTHER, THAT THE SECRETARY SHALL
    25  PROMULGATE REGULATIONS WITH RESPECT TO OVERTIME SUBJECT TO THE
    26  LIMITATIONS THAT NO PAY FOR OVERTIME IN ADDITION TO THE REGULAR
    27  RATE SHALL BE REQUIRED EXCEPT FOR HOURS IN EXCESS OF FORTY HOURS
    28  IN A WORKWEEK.
    29     (D)  AN EMPLOYE WHOSE EARNING CAPACITY IS IMPAIRED BY
    30  PHYSICAL OR MENTAL DEFICIENCY OR INJURY MAY BE PAID LESS THAN
    20060S1090B1973                 - 19 -     

     1  THE APPLICABLE MINIMUM WAGE IF EITHER A LICENSE SPECIFYING A
     2  WAGE RATE COMMENSURATE WITH THE EMPLOYE'S PRODUCTIVE CAPACITY
     3  HAS BEEN OBTAINED BY THE EMPLOYER FROM THE SECRETARY OR A
     4  FEDERAL CERTIFICATE IS OBTAINED UNDER SECTION 14(C) OF THE FAIR
     5  LABOR STANDARDS ACT OF 1938 (52 STAT. 1060, 29 U.S.C.  201 ET
     6  SEQ.). A LICENSE OBTAINED FROM THE SECRETARY SHALL BE GRANTED
     7  ONLY UPON JOINT APPLICATION OF EMPLOYER AND EMPLOYE.
     8     (E)  IN LIEU OF THE MINIMUM WAGE PRESCRIBED IN SUBSECTION (A)
     9  AND SECTION 5(C) AND NOTWITHSTANDING SUBSECTIONS (B) AND (D), AN  <--
    10  EMPLOYER MAY, DURING THE FIRST SIXTY CALENDAR DAYS WHEN AN
    11  EMPLOYE UNDER THE AGE OF TWENTY YEARS IS INITIALLY EMPLOYED, PAY
    12  THE EMPLOYE TRAINING WAGES AT A RATE OF NOT LESS THAN THE
    13  MINIMUM WAGE SET FORTH IN SECTION 6(A) OF THE FAIR LABOR
    14  STANDARDS ACT (29 U.S.C.  206(A)). A PERSON EMPLOYED AT THE
    15  TRAINING WAGE UNDER THIS SUBSECTION SHALL BE INFORMED OF THE
    16  AMOUNT OF THE TRAINING WAGE AND THE RIGHT TO RECEIVE THE FULL
    17  MINIMUM WAGE, OR A HIGHER WAGE, UPON COMPLETION OF THE TRAINING
    18  PERIOD. NO EMPLOYER MAY TAKE ANY ACTION TO DISPLACE EXISTING
    19  EMPLOYES, INCLUDING PARTIAL DISPLACEMENTS SUCH AS REDUCTION IN
    20  THE HOURS, WAGES OR EMPLOYMENT BENEFITS OF EXISTING EMPLOYES,
    21  FOR PURPOSES OF HIRING INDIVIDUALS AT THE TRAINING WAGE
    22  AUTHORIZED BY THIS SUBSECTION.
    23     SECTION 5.  EXEMPTIONS.--(A)  EMPLOYMENT IN THE FOLLOWING
    24  CLASSIFICATIONS SHALL BE EXEMPT FROM BOTH THE MINIMUM WAGE AND
    25  OVERTIME PROVISIONS OF THIS ACT:
    26     (1)  LABOR ON A FARM;
    27     (2)  DOMESTIC SERVICES IN OR ABOUT THE PRIVATE HOME OF THE
    28  EMPLOYER;
    29     (3)  DELIVERY OF NEWSPAPERS TO THE CONSUMER;
    30     (4)  IN CONNECTION WITH THE PUBLICATION OF ANY WEEKLY,
    20060S1090B1973                 - 20 -     

     1  SEMIWEEKLY, OR DAILY NEWSPAPER WITH A CIRCULATION OF LESS THAN
     2  FOUR THOUSAND, THE MAJOR PART OF WHICH CIRCULATION IS WITHIN THE
     3  COUNTY WHERE PUBLISHED OR COUNTIES CONTIGUOUS THERETO;
     4     (5)  IN A BONA FIDE EXECUTIVE, ADMINISTRATIVE, OR
     5  PROFESSIONAL CAPACITY (INCLUDING ANY EMPLOYE EMPLOYED IN THE
     6  CAPACITY OF ACADEMIC ADMINISTRATIVE PERSONNEL OR TEACHER IN
     7  ELEMENTARY OR SECONDARY SCHOOLS) OR IN THE CAPACITY OF OUTSIDE
     8  SALESMAN (AS SUCH TERMS ARE DEFINED AND DELIMITED FROM TIME TO
     9  TIME BY REGULATIONS OF THE SECRETARY, EXCEPT THAT AN EMPLOYE OF
    10  A RETAIL OR SERVICE ESTABLISHMENT SHALL NOT BE EXCLUDED FROM THE
    11  DEFINITION OF EMPLOYE EMPLOYED IN A BONA FIDE EXECUTIVE OR
    12  ADMINISTRATIVE CAPACITY BECAUSE OF THE NUMBER OF HOURS IN HIS OR
    13  HER WORKWEEK WHICH HE OR SHE DEVOTES TO ACTIVITIES NOT DIRECTLY
    14  OR CLOSELY RELATED TO THE PERFORMANCE OF EXECUTIVE
    15  ADMINISTRATIVE ACTIVITIES, IF LESS THAN FORTY PERCENT OF HIS OR
    16  HER HOURS WORKED IN THE WORKWEEK ARE DEVOTED TO SUCH
    17  ACTIVITIES);
    18     (6)  IN THE ACTIVITIES OF AN EDUCATIONAL, CHARITABLE,
    19  RELIGIOUS OR NONPROFIT ORGANIZATION WHERE THE EMPLOYER-EMPLOYE
    20  RELATIONSHIP DOES NOT IN FACT EXIST OR WHERE THE SERVICES ARE
    21  RENDERED TO SUCH ORGANIZATION GRATUITOUSLY;
    22     (7)  IN SEASONAL EMPLOYMENT, IF THE EMPLOYE IS UNDER EIGHTEEN
    23  YEARS OF AGE, OR IF A STUDENT UNDER TWENTY-FOUR YEARS OF AGE, BY
    24  A NONPROFIT HEALTH OR WELFARE AGENCY ENGAGED IN ACTIVITIES
    25  DEALING WITH HANDICAPPED OR EXCEPTIONAL CHILDREN OR BY A
    26  NONPROFIT DAY OR RESIDENT SEASONAL RECREATIONAL CAMP FOR CAMPERS
    27  UNDER THE AGE OF EIGHTEEN YEARS, WHICH OPERATES FOR A PERIOD OF
    28  LESS THAN THREE MONTHS IN ANY ONE YEAR;
    29     (9)  IN EMPLOYMENT BY AN ESTABLISHMENT WHICH IS A PUBLIC
    30  AMUSEMENT OR RECREATIONAL ESTABLISHMENT, ORGANIZED CAMP, OR
    20060S1090B1973                 - 21 -     

     1  RELIGIOUS OR NONPROFIT EDUCATIONAL CONFERENCE CENTER, IF (I) IT
     2  DOES NOT OPERATE FOR MORE THAN SEVEN MONTHS IN ANY CALENDAR
     3  YEAR, OR (II) DURING THE PRECEDING CALENDAR YEAR, ITS AVERAGE
     4  RECEIPTS FOR ANY SIX MONTHS OF SUCH YEAR WERE NOT MORE THAN
     5  THIRTY-THREE AND ONE-THIRD PERCENT OF ITS AVERAGE RECEIPTS FOR
     6  THE OTHER SIX MONTHS OF SUCH YEAR;
     7     (10)  GOLF CADDY;
     8     (11)  IN EMPLOYMENT AS A SWITCHBOARD OPERATOR EMPLOYED BY AN
     9  INDEPENDENTLY OWNED PUBLIC TELEPHONE COMPANY WHICH HAS NOT MORE
    10  THAN SEVEN HUNDRED AND FIFTY STATIONS;
    11     (12)  EMPLOYES NOT SUBJECT TO CIVIL SERVICE LAWS WHO HOLD
    12  ELECTIVE OFFICE OR ARE ON THE PERSONAL STAFF OF SUCH AN
    13  OFFICEHOLDER, ARE IMMEDIATE ADVISERS TO HIM OR HER, OR ARE
    14  APPOINTED BY HIM OR HER TO SERVE ON A POLICY-MAKING LEVEL.
    15     (B)  EMPLOYMENT IN THE FOLLOWING CLASSIFICATIONS SHALL BE
    16  EXEMPT FROM THE OVERTIME PROVISIONS OF THIS ACT:
    17     (1)  SEAMAN;
    18     (2)  ANY SALESMAN, PARTSMAN, OR MECHANIC PRIMARILY ENGAGED IN
    19  SELLING AND SERVICING AUTOMOBILES, TRAILERS, TRUCKS, FARM
    20  IMPLEMENTS, OR AIRCRAFT IF EMPLOYED BY A NONMANUFACTURING
    21  ESTABLISHMENT PRIMARILY ENGAGED IN THE BUSINESS OF SELLING SUCH
    22  VEHICLES TO ULTIMATE PURCHASERS;
    23     (3)  ANY DRIVER EMPLOYED BY AN EMPLOYER ENGAGED IN THE
    24  BUSINESS OF OPERATING TAXICABS;
    25     (4)  ANY EMPLOYE EMPLOYED AS AN ANNOUNCER, NEWS EDITOR, OR
    26  CHIEF ENGINEER BY A RADIO OR TELEVISION STATION, THE MAJOR
    27  STUDIO OF WHICH IS LOCATED (I) IN A CITY OR TOWN OF ONE HUNDRED
    28  THOUSAND POPULATION OR LESS, ACCORDING TO THE LATEST AVAILABLE
    29  DECENNIAL CENSUS FIGURES AS COMPILED BY THE BUREAU OF THE
    30  CENSUS, EXCEPT WHERE SUCH CITY OR TOWN IS PART OF A STANDARD
    20060S1090B1973                 - 22 -     

     1  METROPOLITAN STATISTICAL AREA, AS DEFINED AND DESIGNATED BY THE
     2  BUREAU OF THE BUDGET, WHICH HAS A TOTAL POPULATION IN EXCESS OF
     3  ONE HUNDRED THOUSAND, OR (II) IN A CITY OR TOWN OF TWENTY-FIVE
     4  THOUSAND POPULATION OR LESS, WHICH IS PART OF SUCH AN AREA BUT
     5  IS AT LEAST FORTY AIRLINE MILES FROM THE PRINCIPAL CITY IN SUCH
     6  AREA;
     7     (5)  ANY EMPLOYE ENGAGED IN THE PROCESSING OF MAPLE SAP INTO
     8  SUGAR (OTHER THAN REFINED SUGAR) OR SYRUP;
     9     (6)  EMPLOYMENT BY AN ESTABLISHMENT WHICH IS A MOTION PICTURE
    10  THEATRE;
    11     (7)  ANY EMPLOYE OF A MOTOR CARRIER WITH RESPECT TO WHOM THE
    12  FEDERAL SECRETARY OF TRANSPORTATION HAS POWER TO ESTABLISH
    13  QUALIFICATIONS AND MAXIMUM HOURS OF SERVICE UNDER 49 U.S.C. 
    14  3102(B)(1) AND (2) (RELATING TO REQUIREMENTS FOR QUALIFICATIONS,
    15  HOURS OF SERVICE, SAFETY AND EQUIPMENT STANDARDS).
    16     (C)  (1)  NOTWITHSTANDING THE PROVISIONS OF SECTION 4(A)(7)
    17  AND (8), AN EMPLOYER UNLESS OTHERWISE EXEMPT FROM THE MINIMUM
    18  WAGE PROVISIONS OF SECTION 4(A)(6) WHOSE EMPLOYE COMPLEMENT IS
    19  COMPOSED OF THE EQUIVALENT OF TEN OR LESS FULL-TIME EMPLOYES TO
    20  BE CALCULATED ON A FORTY-HOUR WORKWEEK SHALL PAY:
    21     (I)  FIVE DOLLARS SIXTY-FIVE CENTS ($5.65) AN HOUR BEGINNING
    22  JANUARY 1, 2007.
    23     (II)  SIX DOLLARS SIXTY-FIVE CENTS ($6.65) AN HOUR BEGINNING
    24  JULY 1, 2007.
    25     (2)  SUCH EMPLOYER SHALL PAY THE FULL AMOUNT OF THE MINIMUM
    26  WAGE UNDER SECTION 4(A)(8) BEGINNING JULY 1, 2008.
    27     SECTION 3.  SECTIONS 6, 7, 8 AND 9 OF THE ACT ARE AMENDED TO
    28  READ:
    29     SECTION 6.  MINIMUM WAGE ADVISORY BOARD.--(A)  THERE IS
    30  HEREBY CREATED IN THE DEPARTMENT OF LABOR AND INDUSTRY A MINIMUM
    20060S1090B1973                 - 23 -     

     1  WAGE ADVISORY BOARD CONSISTING OF NINE MEMBERS TO BE APPOINTED
     2  BY THE SECRETARY TO ASSIST HIM OR HER IN CARRYING OUT HIS OR HER
     3  DUTIES UNDER THIS ACT, AND FOR THE PURPOSE OF CONDUCTING PUBLIC
     4  HEARINGS AT THE REQUEST OF THE SECRETARY IN ORDER TO RECOMMEND
     5  RULES AND REGULATIONS FOR THE OCCUPATIONS COVERED WITHIN THIS
     6  ACT.
     7     (B)  OF THE NINE MEMBERS, THREE SHALL BE REPRESENTATIVES OF
     8  AN ESTABLISHED RECOGNIZED ASSOCIATION OF LABOR ORGANIZATIONS,
     9  THREE SHALL BE REPRESENTATIVES OF AN ESTABLISHED RECOGNIZED
    10  ASSOCIATION OF EMPLOYERS AND THREE SHALL BE MEMBERS FROM THE
    11  GENERAL PUBLIC. THE SECRETARY OF LABOR AND INDUSTRY OR HIS OR
    12  HER DESIGNATED REPRESENTATIVE SHALL BE CHAIRMAN OF THE BOARD.
    13     (C)  EACH MEMBER OF THE BOARD SHALL RECEIVE COMPENSATION OF
    14  THIRTY DOLLARS ($30) PER DAY PLUS NECESSARY EXPENSES, FOR EACH
    15  DAY ACTUALLY SPENT IN THE PERFORMANCE OF HIS OR HER DUTIES. NO
    16  EMPLOYE OF THE COMMONWEALTH SHALL RECEIVE ANY ADDITIONAL
    17  COMPENSATION OR EXPENSES ON ACCOUNT OF HIS OR HER SERVICES UNDER
    18  THIS ACT.
    19     (D)  AT LEAST TEN DAYS' PUBLIC NOTICE SHALL BE GIVEN IN THE
    20  MANNER PRESCRIBED BY THE BOARD PRIOR TO ANY PUBLIC HEARING OF
    21  THE BOARD. FIVE MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM.
    22     (E)  THE BOARD SHALL HAVE THE POWER AND DUTY TO:
    23     (1)  CONSULT WITH THE SECRETARY CONCERNING ANY MATTER ARISING
    24  UNDER THE ADMINISTRATION OF THIS ACT AND ADVISE AND ASSIST HIM
    25  OR HER IN CARRYING OUT THE DUTIES PRESCRIBED FOR HIM OR HER BY
    26  SECTION 8 OF THIS ACT;
    27     (2)  CONDUCT PUBLIC HEARINGS AT THE REQUEST OF THE SECRETARY
    28  IN ORDER TO DEVELOP RULES AND REGULATIONS IN ACCORDANCE WITH
    29  SECTION 9 OF THIS ACT, IN WHICH HEARINGS DUE PROCESS OF LAW
    30  SHALL BE OBSERVED AND ANY PERSON MAY APPEAR AND BE HEARD OR FILE
    20060S1090B1973                 - 24 -     

     1  STATEMENTS IN SUPPORT OF HIS OR HER POSITION;
     2     (3)  THE BOARD SHALL SUBMIT ITS REPORT INCLUDING
     3  RECOMMENDATIONS FOR THE PROMULGATION OF RULES AND REGULATIONS TO
     4  THE SECRETARY, WHO SHALL WITHIN THIRTY DAYS THEREAFTER ACCEPT
     5  SUCH REPORT OR REFER IT TO THE BOARD FOR FURTHER CONSIDERATION
     6  AND CONSULTATION. IF THE REPORT IS REFERRED TO THE BOARD FOR
     7  FURTHER CONSIDERATION, THE SECRETARY SHALL, IN CONSULTATION WITH
     8  THE BOARD, MODIFY, AMEND, OR OTHERWISE ACT UPON SUCH REPORT
     9  WITHIN SIXTY DAYS THEREAFTER. RULES AND REGULATIONS DEVELOPED
    10  AND PROMULGATED HEREUNDER SHALL BE PUBLISHED AND ANY PERSON
    11  AGGRIEVED THEREBY, SHALL HAVE A RIGHT OF REVIEW AS SET FORTH IN
    12  SECTION 10 OF THIS ACT[.] ;
    13     (4)  SUBMIT AN ANNUAL REPORT TO THE GENERAL ASSEMBLY BY MARCH
    14  1 OF EACH YEAR DETAILING, TO THE MAXIMUM EXTENT POSSIBLE, DATA
    15  ON THE PREVIOUS CALENDAR YEAR'S DEMOGRAPHICS OF THOSE WORKERS
    16  WHO ARE PAID THE MINIMUM WAGE OR BELOW. THE BOARD MAY INCLUDE
    17  ANY OTHER RELEVANT FACTS THAT IT BELIEVES NECESSARY INTO THE
    18  CONTENT OF SUCH REPORT; AND
    19     (5)  MAKE RECOMMENDATIONS TO THE GENERAL ASSEMBLY BY
    20  SEPTEMBER 1, 2007, AS TO CHANGES THAT IT RECOMMENDS BE MADE TO
    21  THIS ACT.
    22     SECTION 7.  INVESTIGATIONS.--(A)  THE SECRETARY OR HIS OR HER
    23  REPRESENTATIVE SHALL HAVE AUTHORITY TO INVESTIGATE AND ASCERTAIN
    24  THE WAGES OF PERSONS EMPLOYED IN ANY OCCUPATION IN THE
    25  COMMONWEALTH; ENTER AND INSPECT THE PLACE OF BUSINESS OR
    26  EMPLOYMENT OF ANY EMPLOYER OF EMPLOYES IN ANY OCCUPATION IN THE
    27  COMMONWEALTH AT ANY REASONABLE TIME, FOR THE PURPOSE OF
    28  EXAMINING AND INSPECTING ANY RECORDS OF ANY SUCH EMPLOYER THAT
    29  IN ANY WAY RELATE TO WAGES, HOURS, OR OTHER CONDITIONS OF
    30  EMPLOYMENT OF ANY SUCH EMPLOYES; COPY ANY OR ALL OF SUCH RECORDS
    20060S1090B1973                 - 25 -     

     1  AS [HE] THE SECRETARY OR [HIS] AN AUTHORIZED REPRESENTATIVE MAY
     2  DEEM NECESSARY OR APPROPRIATE; REQUIRE FROM SUCH EMPLOYER FULL
     3  AND ACCURATE STATEMENTS IN WRITING, AT SUCH TIMES AS THE
     4  SECRETARY MAY DEEM NECESSARY, OF THE WAGES PAID TO ALL EMPLOYES
     5  IN HIS OR HER EMPLOYMENT; AND INTERROGATE SUCH PERSONS FOR THE
     6  PURPOSE OF ASCERTAINING WHETHER THE PROVISIONS OF THIS ACT AND
     7  THE REGULATIONS ISSUED THEREUNDER HAVE BEEN AND ARE BEING
     8  COMPLIED WITH.
     9     SECTION 8.  DUTY OF EMPLOYER.--EVERY EMPLOYER OF EMPLOYES
    10  SHALL KEEP A TRUE AND ACCURATE RECORD OF THE HOURS WORKED BY
    11  EACH EMPLOYE AND THE WAGES PAID TO EACH, AND SHALL FURNISH TO
    12  THE SECRETARY OR HIS OR HER DULY AUTHORIZED REPRESENTATIVE, UPON
    13  DEMAND, A SWORN STATEMENT OF THE SAME. SUCH RECORDS SHALL BE
    14  OPEN TO INSPECTION BY ANY DULY AUTHORIZED REPRESENTATIVE OF THE
    15  SECRETARY AT ANY REASONABLE TIME AND SHALL BE PRESERVED FOR A
    16  PERIOD OF THREE YEARS. EVERY EMPLOYER SUBJECT TO THIS ACT SHALL
    17  KEEP A SUMMARY OF THIS ACT AND ANY REGULATIONS ISSUED THEREUNDER
    18  APPLICABLE TO HIM OR HER, POSTED IN A CONSPICUOUS PLACE WHERE
    19  EMPLOYES NORMALLY PASS AND CAN READ IT. EMPLOYERS SHALL, UPON
    20  REQUEST, BE FURNISHED COPIES OF SUCH SUMMARIES WITHOUT CHARGE.
    21  EMPLOYERS SHALL PERMIT ANY DULY AUTHORIZED REPRESENTATIVE OF THE
    22  SECRETARY TO INTERROGATE ANY EMPLOYE IN THE PLACE OF EMPLOYMENT
    23  AND DURING WORK HOURS WITH RESPECT TO THE WAGES PAID TO AND THE
    24  HOURS WORKED BY SUCH EMPLOYE OR OTHER EMPLOYES.
    25     SECTION 9.  ENFORCEMENT; RULES AND REGULATIONS.--THE
    26  SECRETARY SHALL ENFORCE THIS ACT. [HE] THE SECRETARY SHALL MAKE
    27  AND, FROM TIME TO TIME, REVISE REGULATIONS, WITH THE ASSISTANCE
    28  OF THE BOARD, WHEN REQUESTED BY [HIM] THE SECRETARY, WHICH SHALL
    29  BE DEEMED APPROPRIATE TO CARRY OUT THE PURPOSES OF THIS ACT AND
    30  TO SAFEGUARD THE MINIMUM WAGE RATES THEREBY ESTABLISHED. SUCH
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     1  REGULATIONS MAY INCLUDE, BUT ARE NOT LIMITED TO, REGULATIONS
     2  DEFINING AND GOVERNING BONA FIDE EXECUTIVE, ADMINISTRATIVE, OR
     3  PROFESSIONAL EMPLOYES AND OUTSIDE [SALESMEN] SALES PERSONS,
     4  LEARNERS AND APPRENTICES, THEIR NUMBER, PROPORTION, LENGTH OF
     5  LEARNING PERIOD, AND OTHER WORKING CONDITIONS; HANDICAPPED
     6  WORKERS; PART-TIME PAY; OVERTIME STANDARDS; BONUSES; ALLOWANCES
     7  FOR BOARD, LODGING, APPAREL, OR OTHER FACILITIES OR SERVICES
     8  CUSTOMARILY FURNISHED BY EMPLOYERS TO EMPLOYES; ALLOWANCES FOR
     9  GRATUITIES; OR ALLOWANCES FOR SUCH OTHER SPECIAL CONDITIONS OR
    10  CIRCUMSTANCES WHICH MAY BE INCIDENTAL TO A PARTICULAR EMPLOYER-
    11  EMPLOYE RELATIONSHIP.
    12     SECTION 4.  SECTION 12 OF THE ACT, AMENDED DECEMBER 10, 1974
    13  (P.L.916, NO.303), IS AMENDED TO READ:
    14     SECTION 12.  PENALTIES.--(A)  ANY EMPLOYER AND HIS OR HER
    15  AGENT, OR THE OFFICER OR AGENT OF ANY CORPORATION, WHO
    16  DISCHARGES OR IN ANY OTHER MANNER DISCRIMINATES AGAINST ANY
    17  EMPLOYE BECAUSE SUCH EMPLOYE HAS TESTIFIED OR IS ABOUT TO
    18  TESTIFY BEFORE THE SECRETARY OR HIS OR HER REPRESENTATIVE IN ANY
    19  INVESTIGATION OR PROCEEDING UNDER OR RELATED TO THIS ACT, OR
    20  BECAUSE SUCH EMPLOYER BELIEVES THAT SAID EMPLOYE MAY SO TESTIFY
    21  SHALL, UPON CONVICTION THEREOF IN A SUMMARY PROCEEDING, BE
    22  SENTENCED TO PAY A FINE OF NOT LESS THAN FIVE HUNDRED DOLLARS
    23  ($500) NOR MORE THAN ONE THOUSAND DOLLARS ($1,000), AND IN
    24  DEFAULT OF THE PAYMENT OF SUCH FINE AND COSTS, SHALL BE
    25  SENTENCED TO IMPRISONMENT FOR NOT LESS THAN TEN DAYS NOR MORE
    26  THAN NINETY DAYS.
    27     (B)  ANY EMPLOYER OR THE OFFICER OR AGENT OF ANY CORPORATION
    28  WHO PAYS OR AGREES TO PAY ANY EMPLOYE LESS THAN THE RATES
    29  APPLICABLE TO SUCH EMPLOYE UNDER THIS ACT SHALL, UPON CONVICTION
    30  THEREOF IN A SUMMARY PROCEEDING, BE SENTENCED TO PAY A FINE OF
    20060S1090B1973                 - 27 -     

     1  NOT LESS THAN SEVENTY-FIVE DOLLARS ($75) NOR MORE THAN THREE
     2  HUNDRED DOLLARS ($300) OR TO UNDERGO IMPRISONMENT OF NOT LESS
     3  THAN TEN NOR MORE THAN SIXTY DAYS, OR BOTH. EACH WEEK IN WHICH
     4  SUCH EMPLOYE IS PAID LESS THAN THE RATE APPLICABLE TO HIM OR HER
     5  UNDER THIS ACT AND FOR EACH EMPLOYE WHO IS PAID LESS THAN THE
     6  PRESCRIBED RATE, A SEPARATE OFFENSE SHALL BE DEEMED TO OCCUR.
     7  ANY AGREEMENT BETWEEN THE EMPLOYER AND THE EMPLOYE TO WORK FOR
     8  LESS THAN THE APPLICABLE WAGE RATE SHALL BE NO DEFENSE TO ACTION
     9  BY THE COMMONWEALTH UNDER THIS SECTION.
    10     (C)  ANY EMPLOYER OR THE OFFICER OR AGENT OF ANY CORPORATION
    11  WHO VIOLATES ANY OTHER PROVISION OF THIS ACT OR OF ANY
    12  REGULATION ISSUED THEREUNDER SHALL, UPON CONVICTION THEREOF IN A
    13  SUMMARY PROCEEDING, BE SENTENCED TO PAY A FINE OF NOT LESS THAN
    14  ONE HUNDRED DOLLARS ($100) NOR MORE THAN FIVE HUNDRED DOLLARS
    15  ($500), AND EACH DAY OF SUCH FAILURE TO COMPLY WITH THIS ACT OR
    16  REGULATION, SHALL CONSTITUTE A SEPARATE OFFENSE.
    17     SECTION 5.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    18     SECTION 14.1.  PREEMPTION.--(A)  EXCEPT AS SET FORTH IN
    19  SUBSECTION (B), THIS ACT SHALL PREEMPT AND SUPERSEDE ANY LOCAL
    20  ORDINANCE OR RULE CONCERNING THE SUBJECT MATTER OF THIS ACT.
    21     (B)  THIS SECTION DOES NOT PROHIBIT LOCAL REGULATION PURSUANT
    22  TO AN ORDINANCE WHICH WAS ADOPTED BY A MUNICIPALITY PRIOR TO
    23  JANUARY 1, 2006, AND WHICH REMAINED IN EFFECT ON JANUARY 1,
    24  2006.
    25     SECTION 6.  ALL ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR
    26  AS THEY ARE INCONSISTENT WITH THE ADDITION OF SECTION 14.1 OF
    27  THE ACT.
    28     SECTION 7.  THIS ACT SHALL APPLY AS FOLLOWS:
    29         (1)  THE ADDITION OF SECTION 14.1 OF THE ACT SHALL NOT
    30     INVALIDATE ANY ORDINANCE, CHARTER PROVISION, RESOLUTION, RULE
    20060S1090B1973                 - 28 -     

     1     OR REGULATION IN EFFECT ON THE EFFECTIVE DATE OF THIS
     2     SECTION.
     3         (2)  THE FOLLOWING PROVISIONS SHALL APPLY TO CONTRACTS
     4     ENTERED INTO OR RENEWED ON OR AFTER THE EFFECTIVE DATE OF
     5     THIS SECTION:
     6             (I)  THE ADDITION OF SECTION 14.1 OF THE ACT.
     7             (II)  SECTION 7 OF THIS ACT.
     8     SECTION 8.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.















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