of the Service Contract Act to include any State of the United
States, the District of Columbia, Puerto Rico, the Virgin Islands,
Outer Continental Shelf Lands,

as

defined in the Outer Continental

Shelf Lands Act, American Samoa, Guam, Wake Island, Eniwetok Atoll
Kwajalein Atoll, and Johnston Island. It does not include any
‘ other territory under the jurisdiction of the United States
United States base or possession within a foreign country.

is.

or any

Special Employees. Notwithstanding any of the provisions in para-

graphs 2 through 12 of this Article, relating to the Service Con-

tract Act of 1965, the following employees may be employed in accordance with the following variations, tolerances, and exemptions, which

the Secretary of Labor, pursuant to Section 4(b) of the Act prior to
its amendment by Public Law 92-473, found to be necessary and proper
in the public interest or to avoid serious impairment of the conduct

of Government business:

.

(a) (1) Apprentices, student-learmers, and workers whose earning
capacity is impaired by age, physical or mental deficiency,

or injury may be employed at wages lower than the minimum wages

otherwise- required by Section 2(a)(1) or 2(b)(1) of the Service

Contract Act of 1965, without diminishing any fringe benefits
or cash payments in lieu thereof required under Section 2(a)
(2) of that Act, in accordance with the procedures prescribed
for the employment of apprentices, student-learners, handi-~

capped persons, and handicapped clients. of sheltered workshops
under Section 14 of the Fair Labor Standards Act of 1938, in
the regulations {ssued by the Administrator.
(2) The Administrator will issue certificates under the Service
Contract Act of 1965 For the employment of apprentices,
student-leamers, handicapped persons, or handicapped clients
of sheltered workshops not subject to the Pair Labor Standards
Act of 1938,
the

or subject to different minimum rates of pay under

two acts,

authorizing appropriate rates of minimum wages

(but without changing requirements concerning fringe benefits

or supplementary cash payments in lieu thereof), applying procedures prescribed by the applicable regulations issued under

the Fair Labor Standards Act of 1938 (29 CYR Parts 520, 521,

524,

and 525).

(3) The Administrator will also withdraw, annul, or cancel such

certificates in accordance with the regulations in Parts 525
and 528 of Title 29 of the Code of Federal Regulations.

(b) An employee engaged in an occupation itn which he customarily and
regularly receives more than $20 a month in tips may have the
amount of his tips credited by his employer against the minimum

wage required by Section 2(a)(1) or Section 2(b)(1) of the Act, in
accordance with the regulations in 29 CER Part 531: PROVIDED,

however, that the amount of such credit may not exceed $1 per hour

effective May 1, 1974, $1.05 per hour effective January 1, 1975,
and $1.15 per hour after December 31, 1975.
25

as
5008b 1b

~

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