WASHINGTONThe U.S. Department of Labor today announced mandatory minimum wage rate increases for American Samoa. The rate increases will apply to all government employees and several of the covered private sector industries in the territory.
In June, the department appointed a six member committee to review local economic conditions and hear testimony from interested parties at a public meeting held in Pago Pago, American Samoa. The six-member committee was comprised of two members each representing the public sector, employers and employees.
Based on its findings, the committee recommended to the Labor Department a rate for each industry that will not substantially curtail employment and will not give industries in the territory a competitive advantage over similar U.S. businesses not in American Samoa. The minimum wage rates for all government employees and the specified private-sector industries will increase by five percent over the next two years. Notice of the new American Samoa minimum wage rates was published in the Federal Register today. The new rates will take effect in 15 days.
The following chart shows the changes in minimum wage rates for affected industries: Industry New Rate - Oct. 18, 2005 New Rate Oct. 1, 2006 Government $2.84 per hour $2.91 per hour Ship Maintenance $3.42 per hour $3.51 per hour Hotel Industry $2.93 per hour $3.00 per hour Travel Services $3.39 per hour $3.48 per hour Miscellaneous Activities $2.63 per hour $2.70 per hour The Fair Labor Standards Act (FLSA) provides that minimum wage rates in American Samoa may be established by special industry committees at rates below that required on the mainland. The industry committee meets biennially to recommend an alternative to the automatic application of the mainland minimum wage rate, and to gradually increase rates to the mainland level without adverse effect on the Samoan economy or on job opportunities.
Archived News Release — Caution: Information may be out of date.
