Youth Employment Opportunity Act of 1981

Youth Employment Opportunities Act of 1981 - Amends the Fair Labor Standards act of 1938 to permit employers, without prior or special certification by the Secretary of Labor, to pay 85 percent of the minimum wage (or the applicable wage in Puerto Rico or the Virgin Islands) for a 180-day period to youths under the age of 20. Requires compliance with applicable child labor laws. Prohibits such special wage rate if a youth has been employed by the same employer for at least six months or is currently employed at the minimum wage.

Authorizes the Secretary to insure against violations of such provisions, but without prior certification requirements. Prohibits employers from engaging in a pattern and practice of: (1) substituting younger workers employed at less than the minimum wage for older workers employed at or above the minimum wage; or (2) terminating the employment of some youths and employing other youths in order to gain continual advantage from the youth opportunity wage. Establishes rates of compensation and fines for such violations.

Repeals the amendments made by this Act, effective three years after the date of enactment of this Act.

Directs the Secretary to report biannually to the Congress on the effect of the amendments made by this Act, including the effect on adult and youth employment rates.