A new interpretive bulletin on coverage of the Fair Labor Standards Act in the construction industry states the guiding principles to be followed by the Administrator in determining when workers engaged on construction projects are covered by law. The act requires payment of $1 per hour minimum wage and payment of time and half for work over 40 hours per week to employees "engaged in commerce or in the production of goods for commerce." One such principle is if the project is a covered project. The act states, "all employees who are employed in connection with construction work which is closely or intimately related to the functioning of existing instrumentalities and channels of interstate commerce or facilities for the production of goods for such commerce are within the scope of the Act. Another factor is the type of construction. Under the act, unless the construction work is physically or functionally integrated or closely identified with an existing covered facility it is not regarded as covered construction. However, if a new building is designed as a replacement of or an addition or an improvement to, an existing interstate production facility, it's construction will be considered subject to the Act. Coverage extends to employees engaged in the installation of machinery even if the building itself is not subject to the Act.