A bill to amend the Fair Labor Standards Act of 1938 to exempt from its overtime requirements employees of State and local public agencies and to clarify the application of that Act to volunteers and to authorize an employer to pay a youth employment opportunity wage to a person under twenty years of age from May through September until September 30, 1987.

Title I: Public Employees - Amends the Fair Labor Standards Act of 1938 to exclude employees of State, local, or interstate governmental agencies from overtime requirements under such Act.

Revises the definition of "employee" under such Act to exclude any volunteer for a State, local, or interstate governmental agency who volunteers to perform such services without compensation or for expenses or a nominal fee.

Title II: Youth Employment Opportunity Wage - Amends the Fair Labor Standards Act of 1938 to authorize employers to pay employees under 20 years of age, from May 1 through September 30 of each year, the lesser of: (1) $2.50 per hour; or (2) 75 percent of the minimum wage rate. Restricts such subminimum wage to: (1) hours worked by eligible employees in compliance with applicable child labor laws; and (2) youths not employed by the employer during the 90-day period before May 1. Prohibits the removal of employees ineligible for such subminimum wage in order to replace them with employees who are eligible.

Makes technical and conforming amendments to the Job Training Partnership Act.

Directs the Secretary of Labor to monitor the implementation of this title and to report to the Congress concerning the employment effects of this title.

Terminates such minimum wage rate exception after September 30, 1987, and repeals, as of that date, the amendments made by this title.