Evening star., 1938-10-23
BY JOHN C. HENRY.


some 100000 persons will receive a
raise in wages. Twice that number.
including most OF those receiving the
wage benefits. will begin working fewer
hours per week: or will receive extra
pay If they work long weeks.
These are the most obvious develop
ments expected to result from applica-
ton Of the Fair Labor Standards Act,
legally in effect at midnight.
That there will be other develop
ments goes without saying. Sponsors
of the new law hope, for instance, that
there will be many thousands of jobs
made available by the reduction of
working hours for those now employed.
Many employers hope establishment of
basic wage and hour standards will
put an end to some of the less de-
sirab,e competitive practices And in
the child labor provisions, many see
the instrument to end oppressive en-
Payment of minors. a long-SOught
goal
Prices May BE Affected.
These and other effects OF the law
probably will have intangible results
more dificult to calculate in advance.
Prices, for instance. may be affected
materially If labor costs rise in an i'm
portant measure. Introduction of
labor saving devices may be speeded up.
And potentially disturbing is the
threat Of widespread shutting down Of
business enterprises as employers
claim inability to meet the higher
standards. Reports already have been
received Of such development, mostly
from Southern industries where low
wages and long hours have been
common.
Some OF these closings are believed
more seasonal than permanent in
nature, while others have been
brought about by the piling up of
inventories in advance Of operation
Of the law
Commencing most employers for
their cooperative attitude. Wage Hour
Administrator Elmer F. Andrews
sharply criticized minority for at
tempting to discredit the act and
hamper its administration. Eventu-
ally, he predicted yesterday, both
labor and industry will find the law
mutually advantageous.
Wage Minimum Is Cents.
Applying only to industries in inter-
state commerce. the wage-hour law
is believed applicable to enterprises
employing 100000 workers. In its
first year of operation, it sets the
wage minimum at IS cents per hour.
During the succeeding six years, this
wage shall not go below 80 cents per
hour, and after this initial seven
year span the basic wage is to be 40
cents per hour.
Hours OF work shall not exceed A
per week during the first year. unless
compensation for the overtime is made
in cash at a rate of one and one-half
times the established hourly rate. For
the second year, the work week has a
maximum Of AZ hours. and from then
on the top is to be 40 hours:
The act provides that the admins
traitor may establish higher standards
for particular industries than are here
set forth. To determine such stand
ards, it is provided that committees
may be named to study conditions in
the industries in question. and to rec
ommend whether or not high wage
hour level should be promulgated. The
administrator, in his discretion, may
then define the new standards.
Exemptions Allowed.
Specific exemptions from provisions
Of the act are granted for employees
engaged in administrative, executive,
professional, local retailing or outside
selling capacities; employees of retail
or service establishments when pre-
dominantly intrastate in character:
seamen, fishermen, agricultural work.
ers; employees of air transport, street
car or bus lines. and certain other
smaller categories.
To make more precise these broad