(a) A full-time student certificate will not be issued for a period
longer than 1 year, nor will it be issued retroactively. It shall
specify its effective and expiration dates. A copy of the certificate
shall be posted during its effective period in a conspicuous place or
places in the establishment or at the farm readily visable to all
employees, for example, adjacent to the time clock or on the bulletin
board used for notices to the employees. If temporary authorization is
in effect under paragraph (a) of Sec. 519.4 of this subpart, a notice
thereof shall be similarly posted during the effective period of such
authorization.
(b) Full-time students may not be employed under a certificate at
less than 85 percent of the minimum wage applicable under section 6 of
the Act.
(c) For retail or service establishment employers or agricultural
employers, the allowable extent of full-time student employment under
certificates varies depending on whether: (1) The employer proposes to
employ no more than six full-time students at subminimum wages on any
workday, (2) the applicant requests authority for not more than 10
percent of the total hours of all employees during any month, or (3) the
applicant requests authority for more than 10 percent of the total hours
during any month. (For agricultural employers, the month of full-time
student certificated employment may vary somewhat from the month in a
previous year on which the certificate is based, depending on seasonal
factors.)
(d) Retail or service establishment employers or agricultural
employers requesting authorization to employ not more than six full-time
students at subminimum wages on any workday. An application from such an
applicant provides temporary authorization for the employment of full-
time students at subminimum wages: Provided, The conditions set forth in
paragraph (a) of Sec. 519.4 of this subpart are met. Upon review of the
application by the Administration or his/her authorized representative,
the extent of the temporary authority may be modified.
(e) Applicants requesting authorization for not more than 10 percent
of the total hours of all employees during any month. For such an
applicant, certificates may authorize the employment of full-time
student at subminimum wages for up to 10 percent of the total hours of
all employees during any month, regardless of past practice of employing
students. (Note: An establishment which has not previously held a
certificate may be authorized 10 percent of the total hours of all
employees during any month. Applicants requesting authority under this
paragraph need not refer to paragraphs (f), (g), or (h) of this
section.)
(f) Applicants reguesting authorization for more than 10 percent of
the total monthly hours of all employees during
any month with records of hours of employment of students and coverage
by the Act prior to May 1974. For such an applicant, certificates may
not authorize full-time student employment at subminimum wages in excess
of the highest ratio under any of these three formulas: (1) The
proportion of student hours of employment (i.e., of full-time students
under certificates) to total hours of all employees for the
corresponding month of the preceding twelve-month period; (2) the
maximum proportion of student hours of employment to total hours of all
employees (in any corresponding month), applicable to the issuance of
full-time student certificates before May 1974; or (3) 10 percent of the
total hours of all employees, during any month. (Note: An establishment
which is entitled to monthly allowances ranging from 5 to 20 percent may
be authorized 10 percent for those months which were less than 10
percent and retain the higher allowances for those months above 10
percent.)
(g) Applicants requesting authorization for more than 10 percent of
the total hours of all employees during any month with records of hours
of employment of students and new coverage under the 1974 Amendments.
For such an applicant, the highest permissible allowance under a
certificate during any month is the highest ratio under any of these
three formulas: (1) The proportion of hours of employment of full-time
students to total hours of all employees during the corresponding month
from May 1973 through April 1974; (2) the proportion of student hours of
employment (i.e., of hours of full-time students under certificates) to
total hours of all employees during the corresponding month of the
preceding twelve-month period (an alternative which is not applicable to
all months of the year until 12 months after May 1, 1974); or (3) 10
percent of the total hours of all employees, during any month. (See
notes under paragraphs (e) and (f) of this section.)
(h) Applicants requesting authorization for more than 10 percent of
the total hours of all employees during any month without records of
student hours worked. For such an applicant, the permissible proportion
under certificate of full-time student hours at subminimum wages to
total hours of all employees is based on the ``practice'' during the
preceding twelve-month period of: (1) Similar establishments of the same
employer in the same general metropolitan areas in which such
establishment is located: (2) similar establishments in the same or
nearby communities if such establishment is not in a metropolitan area;
or (3) other establishments of the same general character operating in
the community or the nearest comparable community. (``Practice'' means
either the certificate allowances or the proportion between the actual
student hours of employment to the total hours of all employees.)
(i) An overestimate of total hours of employment of all employees
for a current month resulting in the employment of the full-time
students in excess of the hours authorized in paragraph (e), (f), (g),
or (h) of this section may be corrected by compensating them for the
difference between the subminimum wages actually paid and the applicable
minimum under section 6 of the Act for the excess hours. Similarly, if
an agricultural employer or a retail or service establishment employer
has authorization to employ no more than six full-time students at
subminimum wages on any workday but exceeds that number, the excess may
be corrected by compensating the additional full-time students for the
difference between the subminimum wages actually paid and the applicable
minimum under section 6 of the Act. This additional compensation shall
be paid on the regular payday next after the end of the period.
(j) Full-time students shall not be permitted to work at subminimum
wages for more than 8 hours a day, nor for more than 40 hours a week
when school is not in session, nor more than 20 hours a week when school
is in session (apart from a full-time student's summer vacation), except
that when a full-day school holiday occurs on a day when the
establishment is open for business, the weekly limitation on the maximum
number of hours which may be worked shall be increased by 8 hours for
each such holiday but in no event shall the 40-hour limitation be
exceeded. (Note: School is considered to be in session for a student
attending summer
school.) Whenever a full-time student is employed for more than 20 hours
in any workweek in conformance with this paragraph, the employer shall
note in his/her payroll records that school was not in session during
all or part of that workweek or the student was in his/her summer
vacation.
(k) Neither oppressive child labor as defined in section 3(1) of the
Act and regulations issued under the Act nor any other employment in
violation of a Federal, State or local child labor law or ordinance
shall come within the terms of any certificate issued under this
subpart.
(l) Full-time students shall be employed at subminimum wages under
this subpart only outside of their school hours, i.e., only outside of
the scheduled hours of instruction of the individual student, or, in the
case of agriculture, only outside of school hours for the school
district where the employee is living while so employed, if the employee
is under 16 years of age.
(m) No full-time student shall be hired under a full-time student
certificate while abnormal labor conditions, such as a strike or
lockout, exist at the establishment or farm.
(n) No provision of any full-time student certificate shall excuse
noncompliance with higher standards applicable to full-time students
which may be established under the Walsh-Healey Public Contracts Act or
any other Federal law, State law, local ordinance, or union or other
agreement. Thus, certificates issued under this law have no application
to employment under the Service Contract Act.
(o) No full-time student certificate shall apply to any employee to
whom a certificate issued under section 14 (a) or (c) of the Act has
application.
[40 FR 6329, Feb. 11, 1975; 40 FR 22546, May 23, 1975, as amended at 42
FR 58745, Nov. 11, 1977]
