Fair Labor Standards Amendments of 1988

(Reported to House from the Committee on Education and Labor with amendment, H. Rept. 100-560)

Fair Labor Standards Amendments of 1988 - Amends the Fair Labor Standards Act of 1938 (the Act) to raise the Federal minimum wage per hour from $3.35 to: (1) $3.85 in 1989; (2) $4.25 in 1990; (3) $4.65 in 1991; and (4) $5.05 in 1992 and thereafter.

Revises the definition of an enterprise engaged in commerce, for purposes of coverage under the Act ("the enterprise test"). Exempts from such coverage retail or service establishments whose annual gross volume of sales or business is less than $500,000 (currently $362,500), effective in 1989. Requires employers who were covered under the threshold in 1988, but who are exempt under the new one, to continue to pay the $3.35 per hour minimum wage.

Exempts from the overtime provisions of the Act any salesman, partsman, or mechanic primarily engaged in the selling or servicing of farm, light mobile construction, or lawn, turf, or garden equipment if such worker is employed by a nonmanufacturing establishment primarily engaged in the selling and servicing of such vehicles or equipment. (Continues the current exemption for such workers engaged in selling or servicing automibiles, trucks, or farm implements for such business.)

Allows an employer of a tipped employee to credit toward the minimum wage liability an amount up to 45 percent of the tips actually received by the employee. (The current tip credit is 40 percent.) Makes such tip credit increase applicable in 1989. Increases the tip credit to 50 percent in 1990 and thereafter.

Makes minimum wage coverage for the Virgin Islands the same as that for the mainland United States by removing all references to the Virgin Islands under provisions for Special Industry Committees and the minimum wage for Puerto Rico and American Samoa.

Provides coverage under the Act to certain employees of the legislative branch of the U.S. Government. Exempts from such coverage: (1) elected officials; (2) members of the office holder's personal staff; (3) policy advisors appointed by the officeholder; and (4) immediate advisors to the officeholder on constitutional or legal powers of the office. Provides that the requirements of the Act applicable to congressional employees shall be enforced in accordance with the Act until the House of Representatives and the Senate adopt rules enforcing such requirements.