Applicability of Minimum Wage Act to Public Employes

1 Pa. D. & C.3d 33
CourtPennsylvania Department of Justice
DecidedOctober 18, 1976
DocketOfficial Opinion No. 76-29
StatusPublished

This text of 1 Pa. D. & C.3d 33 (Applicability of Minimum Wage Act to Public Employes) is published on Counsel Stack Legal Research, covering Pennsylvania Department of Justice primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Applicability of Minimum Wage Act to Public Employes, 1 Pa. D. & C.3d 33 (Pa. 1976).

Opinion

KANE, Attorney General, YAKOWICZ, Solicitor General, and ROVELLI, Deputy Attorney General,

You have requested our opinion as to the applicability of the Pennsylvania Minimum Wage Act of 1968 to employes of the Commonwealth and its political subdivisions and instrumentalities in light of the recent decision of the United States Supreme Court in National League of Cities et al. v. Usery, — U.S. —, 96 S.Ct. 2465 (1976). It is our opinion, and you are hereby advised, that the Minimum Wage Act of 1968 is not applicable to employes of the Commonwealth and its political subdivisions and instrumentalities.

Your question presents a difficult problem of statutory construction requiring that we summarize, at the outset, the history of legislation and case law pertinent to the application of minimum wage and overtime standards to Pennsylvania public employes.

Pennsylvania’s initial foray into the field of wage regulation, the Act of May 27, 1937, P.L. 917, 43 P.S. §331a, et seq., provided for the establishment of minimum fair wages paid by employers to women and children. The act empowered the Secretary of Labor and Industry to appoint a wage board to classify employments and recommend minimum fair wage rates for different classes of [35]*35employment. The Act of 1937 did not, however, speak to public employment.

The Minimum Wage Act of 1961, Act of September 15, 1961, P.L. 1313, 43 P.S. §333.1, et seq., supplemented the Act of 1937, defining “employe” in section 3, 43 P.S. §333.3, as follows:

“(6) ‘Employe’ includes any individual employed by an employer, but shall not include any individual:
“(b) Employed by the United States or by the Commonwealth.”

The Fair Labor Standards Act of 1938, Act of June 25, 1938, 52 Stat. 1060, 29 U.S.C. §201, et seq., was amended tin 1966 to redefine “employer,” removing from that definition the exemption previously afforded the States and their political subdivisions with respect to employes of State hospitals, institutions, and schools.1

The Minimum Wage Act of 1968, Act of January 17, 1968, P.L. 11, 43 P.S. §333.101, et seq., defines “employer” and “employe” in section 3, 43 P.S. §333.103, as follows:

“(g) ‘Employer’ includes any individual, partnership, association, corporation, business trust, or any person or group of persons acting, directly or indirectly, in the interest of an employer in relation to an employe.
“(h) ‘Employe’ includes any individual employed by an employer but shall not include any individual to the extent that he is subject to the Federal Fair Labor Standards Act. ...”

As enacted, the Minimum Wage Act of 1968 also provided in section 5, 43 P.S. §333.105, that

[36]*36“(a) Employment in the following classifications shall be exempt from both the minimum wage and overtime provisions of this act:
“(17) In the employ of the United States or the Commonwealth of Pennsylvania or any political subdivision or instrumentality of the Commonwealth of Pennsylvania.”

The Fair Labor Standards Act was again amended April 8, 1974, P.L. 93-259, 88 Stat. 62, this time to specifically include public agencies within the definition of “employer”, 29 U.S.C. §203(d), and to fully remove the exemption previously afforded the States and their political subdivisions.2

Later in 1974, the Minimum Wage Act of 1968 was amended to delete from the Pennsylvania Act the exemption previously afforded the United States, the Commonwealth and its political subdivisions and instrumentalities in section 5(a)(17), 43 P.S. §333.105(a)(17).3

The United States Supreme Court, in a decision rendered June 24, 1976, held unconstitutional the 1974 amendments to the Fair Labor Standards Act insofar as those amendments extended coverage of the minimum wage and overtime provisions of the act to employes of the States and their political subdivisions: National League of Cities et al. v. Usery, — U.S. —, 96 S.Ct. 2465 (1976). The court, overruling Maryland v. Wirtz, 392 U.S. 183 (1968), also struck down the 1966 amendments to the Federal act insofar as those amendments extended coverage of the minimum wage and overtime [37]*37provisions of the act to employes of State hospitals, institutions, and schools.

Two separate but interrelated questions are raised by the issue of whether the Pennsylvania Minimum Wage Act of 1968 is now applicable to employes of the Commonwealth and its political subdivisions and instrumentalities. Clearly, in the wake of Usery, Pennsylvania public employes are no longer “subject to the Federal Fair Labor Standards Act.” 43 P.S. §333.103(h). Also clear is that the Minimum Wage Act of 1968, as amended, contains neither an affirmative nor negative reference to coverage of public employes. The questions then are these:

1. Did the General Assembly intend, by its 1974 amendments to the Minimum Wage Act of 1968 deleting the public employe exemption, to thereby extend coverage of the act to employes of the Commonwealth and its political subdivisions and ins trumentalitie s ?

2. Even if the first question is answered in the negative, does the definition of “employer” in section 3(g) of the act, 43 P.S. §333.103(g), nevertheless include the Commonwealth and its political subdivisions and instrumentalities?

(1) It is our opinion that the General Assembly did not intend, by the negative act of removing the public employe exemption from the Minimum Wage Act of 1968, to thereby extend coverage of the act to employes of the Commonwealth and its political subdivisions and instrumentalities. We are rather of the view that, in removing the exemption, the General Assembly intended nothing more than to entirely exclude Federally covered public employes from the operation of the Pennsylvania Act.

[38]*38The 1966 amendments to the Fair Labor Standards Act extended coverage of that act, for the first time, to employes of State hospitals, institutions and schools. The Minimum Wage Act of 1968, in sharp contrast to the Minimum Wage Act of 1961, specifically excluded from the definition of “employe” individuals “subject to the Federal Fair Labor Standards Act.” The effect of that provisions, at the time of its enactment in 1968, was to entirely exclude employes of State hospitals, institutions and schools from operation of the 1968 Act. All other Pennsylvania public employes were exempted from the provisions of the act under section 5(a)(17), 43 P.S. §333.105(a)(17).

The 1974 amendments to the Fair Labor Standards Act extended coverage of that act to virtually all public employes. Those amendments were widely assumed to be constitutional based on the United States Supreme Court’s decision in Maryland v. Wirtz, 392 U.S. 183 (1968), upholding the constitutionality of the 1966 amendments to the Federal Act.

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Related

Maryland v. Wirtz
392 U.S. 183 (Supreme Court, 1968)
National League of Cities v. Usery
426 U.S. 833 (Supreme Court, 1976)
Keifer Appeal
243 A.2d 336 (Supreme Court of Pennsylvania, 1968)
Mamlin v. Genoe
17 A.2d 407 (Supreme Court of Pennsylvania, 1940)
Pittsburgh Public Parking Authority Petition
76 A.2d 620 (Supreme Court of Pennsylvania, 1950)

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Bluebook (online)
1 Pa. D. & C.3d 33, Counsel Stack Legal Research, https://law.counselstack.com/opinion/applicability-of-minimum-wage-act-to-public-employes-padeptjust-1976.