	Introduction

On May 25, 2007, President George Bush signed into law a supplemental appropriations bill ( H.R. Under P.L. In addition, the bill raised wages in two insular territories of the Pacific: the Commonwealth of the Northern Mariana Islands and American Samoa. The federal minimum wage, now having been raised, may, perhaps, be dormant for a time. The Youth Sub-Minimum Wage

Under current law, a sub-minimum wage at $4.25 per hour is allowed for youth workers (under 20 years of age) through the first 90 consecutive days of employment with an employer. No change was made by the 2007 amendments. For either side, it may have been "too high a price to pay." Through the years, the level of the tip credit (the difference between $2.13 per hour and the minimum wage) has varied. The tip credit, thus, has become an issue of equity and of percentages. Clinton, Bush and the Companionship Exemption

In 1993 and again in 1995, proposed rules were published governing the nature of the companionship exemption under the Fair Labor Standards Act. 3582 (Woolsey) and S. 2061 (Harkin)]. Indexation of the minimum wage has been a topic of discussion among economists through nearly a century. Although the issue was raised in almost every Congress through a series of individual bills, the concept was not linked to the more general enactments that were adopted in 1996 and in 2007. Significant numbers of workers were exempt (or not covered) by its provisions: for example, agricultural, retail and service workers (including public employees) and those who would be defined as not being engaged in interstate commerce. As the act was expanded and new groups of workers were included, protests arose from employers. In 1977, a general small business exemption was set at $362,500, but with other options included for particular industries. The measure was signed into law in mid-November 1989. Over time, the issues continued to be debated. Under this formula, wage rates were to be determined as follows:
"(A) lower than the minimum wage applicable under section 206 of this title,
"(B) commensurate with those paid to nonhandicapped workers, employed in the vicinity in which the individuals under the certificates are employed, for essentially the same type, quality, and quantity of work, and
"(C) related to the individual's productivity." Guam has always been under the act. In the 2007 FLSA amendments ( P.L. There are now 34 states and other jurisdictions that have wage rates in excess of the federal minimum, and several of the states have indexed the minimum rate to increase at regular intervals. The Executive, Administrative and Professional Exemption under FLSA

On March 31, 2003, Wage/Hour Administrator Tammy McCutchen published in the Federal Register a proposed rule updating Section 13(a)(1), that portion of the FLSA that deals with minimum wages and overtime coverage for executive, administrative or professional (EAP) workers.
On May 25, 2007, the President signed into law changes in the minimum wage under the Fair Labor Standards Act (FLSA): P.L. 110-28. Although the wage issue may now have been momentary settled, the act includes other provisions that have been subject to legislation through the years and may again become the focus of legislative consideration. Examples include the following issues.
A youth sub-minimum wage, instituted in 1996, was not included in the 2007 amendments, and is $4.25 per hour. The cash wage employers of 'tipped employees' must pay, last updated in 1996, is $2.13 per hour. In 1989, the 'small business exemption' was restructured to exempt from minimum wage requirements qualifying firms with an income of under $500,000; but, as administered, exemptions have only been available for employees not involved in interstate commerce. In 2001, the Clinton Administration proposed restructuring of the 'companionship exemption' under the FLSA; in 2002, the measure was withdrawn. The issue has recently been the subject of a Supreme Court ruling (2007) and of proposed legislation (H.R. 3582 and S. 2061). Through nearly a century, some economists (and, later, some Members of Congress) have proposed, in various formats, indexation of the federal minimum wage—an issue that still sometimes arises. In 1986, Section 14(c) of the act was amended to remove any specific minimum wage floor for handicapped workers, replacing it with a negotiated wage 'commensurate' with the worker's productivity. It has been contested through the years. In 2003, a proposal was issued dealing with overtime pay for persons classified as 'executive, administrative, or professional' employees under Section 13(a)(1) of the act. At that time, the issue was extremely contentious. How has it worked out in practice? Industry has threatened to leave American Samoa and the Commonwealth of the Northern Mariana Islands were the full FLSA to be made applicable there, as it would be under P.L. 110-28. What will be the impact upon those islands? Increasingly, the states (now 34 in number) have moved to provide minimum wage rates higher than the federal rate. What implications can be expected, both in economic and political terms?
This report will be updated as the need may arise.