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ESA News Release: [10/01/2005]
Contact Name:
Dolline Hatchett
Phone Number: (202) 693-4676
Release Number: 05-1845-NAT
U.S. Department of Labor Announces Minimum Wage Increase
For Some American Samoa Industries
URates Will Increase by Five Percent Over the Next Two Years
WASHINGTONThe U.S. Department of Labor today announced mandatory
minimum wage rate increases for American Samoa. The rate increases will
apply to all government employees and several of the covered private sector
industries in the territory.
In June, the department appointed a six member committee to review local
economic conditions and hear testimony from interested parties at a public
meeting held in Pago Pago, American Samoa. The six-member committee
was comprised of two members each representing the public sector, employers
and employees.
Based on its findings, the committee recommended to the Labor Department
a rate for each industry that will not substantially curtail employment
and will not give industries in the territory a competitive advantage
over similar U.S. businesses not in American Samoa. The minimum wage
rates for all government employees and the specified private-sector industries
will increase by five percent over the next two years. Notice of the new
American Samoa minimum wage rates was published in the Federal Register today.
The new rates will take effect in 15 days.
The following chart shows the changes in minimum wage rates for affected
industries:
Industry |
New Rate - Oct. 18, 2005 |
New Rate – Oct. 1, 2006 |
Government |
$2.84 per hour |
$2.91 per hour |
Ship Maintenance |
$3.42 per hour |
$3.51 per hour |
Hotel Industry |
$2.93 per hour |
$3.00 per hour |
Travel Services |
$3.39 per hour |
$3.48 per hour |
Miscellaneous Activities |
$2.63 per hour |
$2.70 per hour |
The Fair Labor Standards Act (FLSA) provides that minimum wage rates
in American Samoa may be established by special industry committees at
rates below that required on the mainland. The industry committee meets
biennially to recommend an alternative to the automatic application of
the mainland minimum wage rate, and to gradually increase rates to the
mainland level without adverse effect on the Samoan economy or on job
opportunities.
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