H.R. 6422 (109th): To amend the Fair Labor Standards Act of 1938 (29 U.S.C> 206(a)(1) to reflect the actual costs ...

...of living in various regions of the country and to bring the minimum to a fair wage that can support federal workers and contractors and thei

109th Congress, 2005–2006. Text as of Dec 08, 2006 (Introduced).

Status & Summary | PDF | Source: GPO

I

109th CONGRESS

2d Session

H. R. 6422

IN THE HOUSE OF REPRESENTATIVES

December 8, 2006

introduced the following bill; which was referred to the Committee on Education and the Workforce

A BILL

To amend the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) to reflect the actual costs of living in various regions of the country and to bring the minimum to a fair wage that can support federal workers and contractors and their families.

1.

Findings

(a)

Over 10% of Federal Contract workers earn below poverty level wages.

(b)

The majority of federal contractors paying poverty level wages are defense contractors (62%).

(c)

Most contractors are large businesses (59%), not small businesses or nonprofit organizations.

(d)

Over a quarter of one million direct federal workers work at poverty level wages. (EPI Study released in 2000)

(e)

Since members of Congress last voted to boost minimum wages, they have raised their own pay by 23%. (Christian Science Monitor 1/30/06)

(f)

While real income is declining for working families, top corporate executives receive an average 431 times the salary of a worker in his or her company. (Christian Science Monitor 1/30/06)

(g)

A graduated increase of the minimum wage proposed in current pending legislation from $5.85/hr. to $7.25/hr. does not bring the annual income of a family of four above the poverty line.

2.

Amendment to the fair labor standards act of 1938

(a)

In General

Section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:

(1)

except as otherwise provided in this section, not less than an hourly wage (or salary equivalent) sufficient for a worker to earn, while working 40 hours a week on a full-time basis, equal to or above what it would cost to cover the cost of housing, food, childcare, transportation and healthcare needs of a family of four based on the regional or municipal cost of living; and

(2)

an additional amount, determined by the Secretary based on the locality in which a worker resides, sufficient to cover the costs to such worker to obtain any fringe benefits not provided by the worker's employer; and

(3)

an hourly wage that will be adjusted annually in accord with Federal Cost of Living Adjustments; and that

(4)

the hourly wage for Federal Workers and Contract Workers will increase by the same percentage as the Congressional pay raise whenever Congress votes to raise their salaries above COLA.

(5)

Effective Date

The amendment made by section (a) above shall take effect 60 days after the date of enactment of this Act; and

(b)

In General

Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) shall apply to the Commonwealth of the Northern Mariana Islands.

(1)

Transition

Notwithstanding subsection (a), the minimum wage applicable to the Commonwealth of the Northern Mariana Islands under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be—

(a)

except as otherwise provided in this section, not less than an hourly wage (or salary equivalent) sufficient for a worker to earn, while working 40 hours a week on a full-time basis, equal to or above what it would cost to cover the cost of housing, food, childcare, transportation and healthcare needs of a family of four based on the regional or municipal cost of living; and

(b)

an additional amount, determined by the Secretary based on the locality in which a worker resides, sufficient to cover the costs to such worker to obtain any fringe benefits not provided by the worker's employer; and

(c)

an hourly wage that will be adjusted annually in accord with federal Cost of Living Adjustments; and that

(d)

the hourly wage for Federal Workers and Contract Workers will increase by the same percentage as the Congressional pay raise whenever Congress votes to raise their salaries above COLA.

(2)

Any items produced or manufactured displaying a Made in the USA label must be compensated with an hourly wage that complies with the federally mandated minimum wage standards in section (b) above.

(3)

Effective Date

The amendment made by section (b) above shall take effect 60 days after the date of enactment of this Act.