Senator John F. Kennedy, Democrat of Massachusetts,
tonight expressed strong satisfaction with the minimum wage bill, voted
by the Senate 62 to 34.
The minimum wage bill, as passed by the Senate today,
will extend protection of the minimum wage and the overtime requirements
to approximately 4 million additional employees and will also provide for
an increase to $1.25 in the existing minimum wage. The bill which passed
the Senate provides for new coverage for employees of retail and retail
service enterprises having annual gross sales of a million dollars or more,
for employees in laundries with an annual gross sales of a million dollars,
for local transit workers, seamen, telephone operators, and employees engaged
in fish processing. In addition, it provides new coverage for all employees
in an establishment which already has some employees covered by the present
law.
For presently covered employees the new rate will
be $1.15 the first year, beginning January 1, 1961; $1.20 for the second
year; and $1.25 thereafter.
For the newly covered employees the minimum rate
will be $1 for the first year, beginning January 1, 1961; $1.05 for the
second year; $1.15 for the third year; and $1.25 thereafter. The newly
covered employees will also be protected by the overtime provision on a
graduated basis. No overtime will apply during the first year, beginning
January 1, 1961. In the second year, overtime will be required after 44
hours, after 42 hours in the third year, and after 40 hours thereafter.
Exemptions were voted for employees of hotels, motels,
restaurants, automobile dealers, and farm equipment dealers.
In addition, individual retail and service stores doing
less than $250,000 gross income business each year will be exempt from
the provisions of the act.