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                                                 Union Calendar No. 313
105th CONGRESS
  2d Session
                                H. R. 2888

                          [Report No. 105-558]

   To amend the Fair Labor Standards Act of 1938 to exempt from the 
   minimum wage recordkeeping and overtime compensation requirements 
                     certain specialized employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 7, 1997

Mr. Fawell (for himself and Mr. Andrews) introduced the following bill; 
   which was referred to the Committee on Education and the Workforce

                              June 3, 1998

Additional sponsors: Mr. Stenholm, Mr. Boehner, Mr. Canady of Florida, 
 Mr. Paul, Mr. Bliley, Mr. Knollenberg, Mr. Kind, Mrs. McCarthy of New 
   York, Mr. Roemer, Mr. Bob Schaffer of Colorado, Mr. Manzullo, Mr. 
   Collins, Ms. Rivers, Mrs. Myrick, Mr. Castle, Mr. Inglis of South 
   Carolina, Mr. Bereuter, Mr. Goode, Ms. Stabenow, Mrs. Johnson of 
Connecticut, Mr. Pappas, Mr. Peterson of Pennsylvania, Mr. Sam Johnson 
 of Texas, Mr. Sandlin, Mr. McHugh, Mr. Hall of Texas, Mr. Graham, Mr. 
  Hoekstra, Mr. Shaw, Mr. Talent, Mr. Davis of Florida, Mr. Boyd, Mr. 
McIntosh, Mr. Lewis of California, Mr. Upton, Mr. Dooley of California, 
  Mr. McKeon, Mr. Solomon, Mr. Burr of North Carolina, Mr. Pitts, Mr. 
    Holden, Mr. Doolittle, Mr. Watts of Oklahoma, Mrs. Fowler, Mr. 
  Sessions, Mr. Cunningham, Mr. Norwood, Mr. Barrett of Nebraska, Mr. 
              Saxton, Mr. Deal of Georgia, and Mr. Cramer

                              June 3, 1998

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
   To amend the Fair Labor Standards Act of 1938 to exempt from the 
   minimum wage recordkeeping and overtime compensation requirements 
                     certain specialized employees.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Sales Incentive 
Compensation Act''.</DELETED>

<DELETED>SEC. 2. EXEMPTION.</DELETED>

<DELETED>    Section 13(a) of the Fair Labor Standards Act of 1938 (29 
U.S.C. 213(a)) is amended by striking the period at the end of 
paragraph (17) and inserting a semicolon and by adding at the end the 
following:</DELETED>
        <DELETED>    ``(18) any employee employed in a sales position 
        if--</DELETED>
                <DELETED>    ``(A) the employee's position requires 
                specialized or technical knowledge related to products 
                or services being sold;</DELETED>
                <DELETED>    ``(B) the employee's sales are 
                predominantly to persons or entities to whom the 
                employee has made previous sales or the employee's 
                position does not involve initiating sales 
                contacts;</DELETED>
                <DELETED>    ``(C) the employee receives--</DELETED>
                        <DELETED>    ``(i) base compensation, 
                        determined without regard to the number of 
                        hours worked by the employee, of not less than 
                        an amount equal to 1</DELETED>\<DELETED>1/
                        2</DELETED>\ <DELETED>times the minimum wage 
                        multiplied by 2,080; and</DELETED>
                        <DELETED>    ``(ii) in addition to the 
                        employee's base compensation, compensation 
                        based upon each sale attributable to the 
                        employee;</DELETED>
                <DELETED>    ``(D) the employee's aggregate 
                compensation based upon sales attributable to the 
                employee is not less than 40 percent of the amount 
                specified in subparagraph (C)(i);</DELETED>
                <DELETED>    ``(E) the employee receives a rate of 
                compensation based upon each sale attributable to the 
                employee which is beyond sales required to reach the 
                compensation required by subparagraph (D) which rate is 
                not less than the rate on which the compensation 
                required by subparagraph (D) is determined; 
                and</DELETED>
                <DELETED>    ``(F) the rate of annual compensation or 
                base compensation for any employee who did not work for 
                an employer for an entire calendar year is prorated to 
                reflect annual compensation which would have been 
                earned if the employee had been compensated at the same 
                rate for the entire calendar year.''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sales Incentive Compensation Act''.

SEC. 2. EXEMPTION.

    Section 13(a) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
213(a)) is amended by striking the period at the end of paragraph (17) 
and inserting a semicolon and by adding at the end the following:
            ``(18) any employee employed in a sales position if--
                    ``(A) the employee has specialized or technical 
                knowledge related to products or services being sold;
                    ``(B) the employee's--
                            ``(i) sales are predominantly to persons 
                        who are entities to whom the employee's 
                        position has made previous sales; or
                            ``(ii) position does not involve making 
                        sales contacts;
                    ``(C) the employee's position requires a detailed 
                understanding of the needs of those to whom the 
                employee is selling;
                    ``(D) the employee's position requires the employee 
                to exercise discretion in offering a variety of 
                products and services;
                    ``(E) the employee receives--
                            ``(i) base compensation, determined without 
                        regard to the number of hours worked by the 
                        employee, of not less than an amount equal to 
                        one and one-half times the minimum wage in 
                        effect under section 6(a)(1) multiplied by 
                        2,080; and
                            ``(ii) in addition to the employee's base 
                        compensation, compensation based upon each sale 
                        attributable to the employee;
                    ``(F) the employee's aggregate compensation based 
                upon sales attributable to the employee is not less 
                than 40 percent of one and one-half times the minimum 
                wage multiplied by 2,080;
                    ``(G) the employee receives a rate of compensation 
                based upon each sale attributable to the employee which 
                is beyond sales required to reach the compensation 
                required by subparagraph (F) which rate is not less 
                than the rate on which the compensation required by 
                subparagraph (F) is determined; and
                    ``(H) the rate of annual compensation or base 
                compensation for any employee who did not work for an 
                employer for an entire calendar year is prorated to 
                reflect annual compensation which would have been 
                earned if the employee had been compensated at the same 
                rate for the entire calendar year.''.

SEC. 3. CONSTRUCTION.

    The amendment made by section 2 may not be construed to apply to 
individuals who are employed as route sales drivers.
                                     





                                                 Union Calendar No. 313

105th CONGRESS

  2d Session

                               H. R. 2888

                          [Report No. 105-558]

_______________________________________________________________________

                                 A BILL

   To amend the Fair Labor Standards Act of 1938 to exempt from the 
   minimum wage recordkeeping and overtime compensation requirements 
                     certain specialized employees.

_______________________________________________________________________

                              June 3, 1998

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed

Pages: 1

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