Fair Labor Standards Amendments of 1989

Fair Labor Standards Amendments of 1989 - Amends the Fair Labor Standards Act of 1938 (the Act) to increase the minimum wage per hour from $3.35 in 1989 to: (1) $3.65 in 1990; (2) $3.95 in 1991; and (3) $4.25 in 1992 and thereafter.

Increases the tip credit under the Act from 40 percent to 45 percent for 1990 and to 50 percent for 1991 and thereafter. (The tip credit deems the amount paid to a tipped employee, for minimum wage purposes, to be increased by an amount determined by the employer, but not by an amount in excess of the specified percentage of the applicable minimum wage rate).

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

Allows employers to pay newly hired workers 80 percent of the minimum wage or $3.35, whichever is higher, for up to 180 days. Prohibits any displacement of other employees because of such lower rate of pay.