PAGO PAGO, American Samoa (AP) — The president has signed into law legislation to freeze American Samoa's minimum wage until 2015.
President Barack Obama signed the bill Thursday, which delays a 50-cent increase that would have gone into effect in September.
Minimum wage in American Samoa varies from $4.18 to $5.59 per hour, depending on the industry. The Fair Minimum Wage Act of 2007 provided for annual 50-cents per hour increases until the rate matched the rest of the U.S., where the minimum pay is $7.25 per hour.
Employers and a government financial report have suggested automatic increases were harming the U.S. territory's economy.
The new law also delays a periodic U.S. Government Accountability Office report on the impact of prior wage increases on American Samoa and the Commonwealth of the Northern Mariana Islands.