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CFR  

Code of Federal Regulations Pertaining to ESA

Title 29  

Labor

 

Chapter V  

Wage and Hour Division, Department of Labor

 

 

Part 779  

The Fair Labor Standards Act As Applied to Retailers of Goods or Services

 

 

 

Subpart E  

Provisions Relating to Certain Employees of Retail or Service Establishments


29 CFR 779.405 - Statutory provisions.

  • Section Number: 779.405
  • Section Name: Statutory provisions.

    Section 13(a)(7) of the Act provides that the provisions of sections 
6 and 7 shall not apply to:
    Any employee to the extent that such employee is exempted by 
regulations, order, or certificate of the Secretary issued under section 
14.


Section 14 of the Act provides, in pertinent part, as follows:

        Learners, Apprentices, Students, and Handicapped Workers

    Sec. 14. (a) The Secretary of Labor, to the extent necessary in 
order to prevent curtailment of opportunities for employment, shall by 
regulations or by orders provide for the employment of learners, of 
apprentices, and of messengers employed primarily in delivering letters 
and messages, under special certificates issued pursuant to regulations 
of the Secretary, at such wages lower than the minimum wage applicable 
under section 6 and subject to such limitations as to time, number, 
proportion, and length of service as the Secretary shall prescribe.
    (b) The Secretary, to the extent necessary in order to prevent 
curtailment of opportunities for employment, shall by regulation or 
order provide for the employment of full-time students, regardless of 
age but in compliance with applicable child labor laws, on a part-time 
basis in retail or service establishments (not to exceed twenty hours in 
any workweek) or on a part-time or a full-time basis in such 
establishments during school vacations, under special certificates 
issued pursuant to regulations of the Secretary, at a wage rate not less 
than 85 per centum of the minimum wage applicable under section 6, 
except that the proportion of student hours of employment to total hours 
of employment of all employees in any establishment may not exceed (1) 
such proportion for the corresponding month of the 12-month period 
preceding May 1, 1961, (2) in the case of a retail or service 
establishment whose employees (other than employees engaged in commerce 
or in the production of goods for commerce) are covered by this Act for 
the first time on or after the effective date of the Fair Labor 
Standards Amendments of 1966, such proportion for the corresponding 
month of the 12-month period immediately prior to such date, or (3) in 
the case of a retail or service establishment coming into existence 
after May 1, 1961, or a retail or service establishment for which 
records of student hours worked are not available, a proportion of 
student hours of employment to total hours of employment of all 
employees based on the practice during the 12-month period preceding May 
1, 1961, in (A) similar establishments of the same employer in the same 
general metropolitan area in which the new establishment is located, (B) 
similar establishments of the same employer in the same or nearby 
counties if the new establishment is not in a metropolitan area, or (C) 
other establishments of the same general character operating in the 
community or the nearest comparable community. Before the Secretary may 
issue a certificate under this subsection he must find that such 
employment will not create a substantial probability of reducing the 
full-time employment opportunities of persons other than those employed 
under this subsection.

                                * * * * *

    (d)(1) Except as otherwise provided in paragraphs (2) and (3) of 
this subsection, the Secretary of Labor, to the extent necessary in 
order to prevent curtailment of opportunities for employment, shall by 
regulation or order provide for the employment under special 
certificates of individuals * * * whose earning or productive capacity 
is impaired by age or physical or mental deficiency or injury, at wages 
which are lower than the minimum wage applicable under section 6 of this 
Act but not less than 50 per centum of such wage and which are 
commensurate with those paid nonhandicapped workers in industry in the 
vicinity for essentially the same type, quality, and quantity of work.
    (2) The Secretary, pursuant to such regulations as he shall 
prescribe and upon certification of the State agency administering or 
supervising the administration of vocational rehabilitation services, 
may issue special certificates for the employment of--
    (A) handicapped workers engaged in work which is incidental to 
training or evaluation programs, and
    (B) multihandicapped individuals and other individuals whose earning 
capacity is so severly impaired that they are unable to engage in 
competitive employment,

at wages which are less than those required by this subsection and which 
are related to the worker's productivity.
    (3)(A) The Secretary may by regulation or order provide for the 
employment of handicapped clients in work activities centers under 
special certificates at wages which are less than the minimums 
applicable under section 6 of this Act or prescribed by paragraph (1) of 
this subsection and which constitute equitable compensation for such 
clients in work activities centers.
    (B) For purposes of this section, the term ``work activities 
centers'' shall mean centers planned and designed exclusively to provide 
therapeutic activities for handicapped clients whose physical or mental 
impairment is
so severe as to make their productive capacity inconsequential.
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