[Code of Federal Regulations] [Title 29, Volume 3] [Revised as of July 1, 2005] From the U.S. Government Printing Office via GPO Access [CITE: 29CFR510.1] [Page 69-70] TITLE 29--LABOR CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR PART 510_IMPLEMENTATION OF THE MINIMUM WAGE PROVISIONS OF THE 1989 Subpart A_General Sec. 510.1 Summary. AMENDMENTS TO THE FAIR LABOR STANDARDS ACT IN PUERTO RICO--Table of Contents Subpart A_General Sec. 510.1 Summary. 510.2 Purpose and scope of regulations. 510.3 Definitions. Subpart B_Schedule of Minimum Wage Rates Applicable in Puerto Rico 510.10 Table of Wage Rates and Effective dates. Subpart C_Classification of Industries 510.20 Wage surveys in Puerto Rico. 510.21 SIC codes. 510.22 Industries eligible for minimum wage phase-in. 510.23 Agricultural activities eligible for minimum wage phase-in. 510.24 Governmental entities eligible for minimum wage phase-in. 510.25 Traditional functions of government. Appendix A to Part 510--Manufacturing Industries Eligible for Minimum Wage Phase-in Appendix B to Part 510--Nonmanufacturing Industries Eligible for Minimum Wage Phase-in Appendix C to Part 510--Government Corporations Eligible for Minimum Wage Phase-in Appendix D to Part 510--Municipalities Eligible for Minimum Wage Phase- in Authority: Sec. 4, Pub. L. 101-157, 103 Stat. 938; 29 U.S.C. 201 et seq. [[Page 70]] Source: 55 FR 12120, Mar. 30, 1990, unless otherwise noted. (a) The Fair Labor Standards Amendments of 1989 (Pub. L. 101-157) were enacted into law on November 17, 1989. Among other provisions, these amendments to the Fair Labor Standards Act (FLSA) increased the minimum wage in section 6(a)(1) of the Act to $3.80 an hour effective April 1, 1990, and to $4.25 an hour effective April 1, 1991. With respect to certain industries and governmental entities in the Commonwealth of Puerto Rico, the Amendments provided that these increases would be phased in over extended periods of time. (b) Section 6(c) of the FLSA provides for four separate categories or tiers for implementing the minimum wage rate increases in Puerto Rico. (1) For Tier 1, which includes employees of the United States, employees of hotels, motels, or restaurants, retail or service establishments that employ such employees primarily in connection with the preparation or offering of food or beverages for human consumption, and industries in which the average hourly wage is greater than $4.64, there shall be no phase-in. The wage rates and effective dates shall be those specified in section 6(a)(1) of FLSA, i.e., $3.80 per hour beginning April 1, 1990 and $4.25 per hour beginning April 1, 1991. (2) For Tier 2, which includes industries in which the average hourly wage is not less than $4.00 but not more than $4.64, the increases in the minimum wage rates shall be phased-in in five annual increments (rounded to the nearest 5 cents) beginning April 1, 1990, and ending April 1, 1994. (3) For Tier 3, which includes industries in which the average hourly wage is less than $4.00, the increases in the minimum wage shall be phased-in in six annual increments (rounded to the nearest 5 cents) beginning April 1, 1990, and ending April 1, 1995. (4) For Tier 4, which includes certain employees of the Commonwealth of Puerto Rico, municipalities, and other governmental entities of the Commonwealth in which the average hourly wage is less than $4.00, the increases shall be phased-in in seven annual increments (rounded to the nearest 5 cents) beginning April 1, 1990 and ending April 1, 1996. (c) The Amendments also eliminated reference to Puerto Rico in those sections of FLSA relating to the establishment and conduct of special industry committees which recommend minimum wage rates in certain territories. These sections now apply only to American Samoa. (Industry committee regulations pertaining to American Samoa are found in 29 CFR parts 511 and 697).