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Office Correspondence

Chairman Bocles



Kenneth B. 7/illiamAyK*^

Date—March 23, 1943
Subject: Prior Approval of Premium
Payments for 48-Hour Week

In response to your request, I sent you a memorandum, dated February 19, concerning the question of whether
payment of overtime rates to employees required to work longer
hours as a result of the mandatory 48-hour order constituted
a wage increase which required prior approval of the War Labor
Board or the Treasury. At that time there was no official
ruling on the matter.
On March 11, the War Labor Board issued an order
clarifying the matter* The order requires approval of the War
Labor Board before overtime rates can be paid employees whose
hours have been lengthened, unless one or more of the following
conditions is met:
1. Overtime rates are required by the Fair
Labor Standards Act or other Federal,
State, or local laws.
2. Overtime rates are required by collective
bargaining agreements.
3. Overtime rates have been paid such employees by the employer as a matter of
custom or established practice.
Straight-time rates for the extra hours worked can
be paid without approval of the War Labor Board.
Presumably, the Treasury will follow the War Labor
Board interpretation in the area under its jurisdiction.
Specifically, it appears that a junior officer doing
administrative work and earning $3000 a year who is not a member of a union and whose employer has not customarily paid overtime rates to junior officers can not now be paid overtime rates
without prior official approval*