103 STAT. 938 PUBLIC LAW 101-157—NOV. 17, 1989 Public Law 101-157 101st Congress An Act Nov. 17, 1989 [H.R. 2710] Fair Labor Standards Amendments of 1989. Business and industry. Employment and unemployment. 29 USC 201 note. To amend the Fair Labor Standards Act of 1938 to increase the minimum wage, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; REFERENCE. (a) SHORT TITLE. —T h is Act may be cited as the "Fair Labor Standards Amendments of 1989". (b) REFERENCE. —Whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.). SEC. 2. MINIMUM WAGE INCREASE. Paragraph (1) of section 6(a) (29 U.S.C. 206(a)(1)) is amended to read as follows: "(1) except as otherwise provided in this section, not less than $3.35 an hour during the period ending March 31, 1990, not less than $3.80 an hour during the year beginning April 1, 1990, and not less than $4.25 an hour after March 31, 1991;". SEC. 3. CHANGE IN ENTERPRISE TEST. (a) IN GENERAL.—Subsection (s) of section 3 (29 U.S.C. 203(s)) is amended to read as follows: "(s)(l) 'Enterprise engaged in commerce or in the production of goods for commerce' means an enterprise that— "(A)(i) has employees engaged in commerce or in the produc- tion of goods for commerce, or that has employees handling, selling, or otherwise working on goods or materials that have been moved in or produced for commerce by any person; and "(ii) is an enterprise whose annual gross volume of sales made or business done is not less than $500,000 (exclusive of excise taxes at the retail level that are separately stated); "(B) is engaged in the operation of a hospital, an institution primarily engaged in the care of the sick, the aged, or the mentally ill or defective who reside on the premises of such institution, a school for mentally or physically handicapped or gifted children, a preschool, elementary or secondary school, or an institution of higher education (regardless of whether or not such hospital, institution, or school is public or private or operated for profit or not for profit); or "(C) is an activity of a public agency. "(2) Any establishment that has as its only regular employees the owner thereof or the parent, spouse, child, or other member of the immediate family of such owner shall not be considered to be an enterprise engaged in commerce or in the production of goods for commerce or a part of such an enterprise. The sales of such an
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