The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
BOARD OF GOVERNORS DF THE FEDERAL RESERVE SYSTEM Office Correspondence Xo Chairman Eccles From Kenneth 3 . ^llltesmrM^// D a te^ February i 9 f 1943 Subject: 48-Hour Order: Conflict with Wage and Salary Stabilization Orders Under the Wage and Salary Stabilization Order, the Treasury has jurisdication over: !• All salary payments in excess of $5,000; and over 2. Salary payments of $5,000 or less for persons: a. Employed in executive, administrative, or professional capacities; and who b. Are not represented in relations with employers by labor organizations• The "War Labor Board has jurisdiction over Y/ages and over those salaries up to |5,000 not the responsibility of the Treasury as Indicated above. Salaries mean all forms of compensation computed on a weekly, monthly, annual basis* Wages mean all forms of compensation computed on an hourly, daily, or piece-work basis. Treasury rules provide that payment of overtime will constitute an increase in salary rate and thus require approval of the Treasury, unless the customary practice of the employer has heen to pay for overtime and the rate has not been changed* Presumably this applies In the same way to wages subject to control of the War Labor "Board. The Fair Labor Standards Act exempts administrative, executive, and professional workers from the overtime pay requirement. Ti/hile rulings defining these terms are rather complex, in general, exemptions are limited to those wages or salaries of $200 a month.or more* These facts require a new decision by the Director of Economic Stabilization. This decision should cover the point: Does the 48-hour order permit payment of overtime at premium rates to groups exempt or not covered by the Fair Labor Standards Act, without approval of the Treasury or War Labor Board? It appears that under present rulings the answer is "Ho". It Is clear that the answer ought to be "Yes11 if the 48-hour order is not to create inequities and defeat part of its purpose. To: Chairman Eccles - 2 - Specifically, it appears that a junior officer performing administrative work who earns $3,000 and is not a 'member of a union cannot be paid time and one-half for overtime without the approval of the Treasury*
@FedFRASER