Evening star., 1938-10-20
WAGE-H0UR RULES
HEAD FOR COURTS
Broad Definitions Leave
Many Questions Open to
Bench Decisions.
Sv the Associated Press.

Bv the Associated Press.
Ohicials of the Wage-Hour Admins.
tration studied today the possibility
that an important distinction in com.
putting overtime payments may exist
between workers employed on a weekly
basis and those paid by hourly rates.
As a result, it appeared possible
that some wage earners might legally
continue to work more than A hour,
. week after the wage-hour law be-
comes effective Monday without &C.
tually increasing their aggregate in.
comes
The Interpretation Of the law which
creates this possibility has been given
unofhcialfy by wage-hour authorities
IN response to inquiries by business
men and ndustrialists preparing te
comply with the act.
Like other interpretations, however
1t Is subject to court review. If II
should be held eventually to constitute
violation, the employer acting on Il
would be subject to penalties.
Each Employer in Jeopardy.
On this, as on other problems aris-
ing under the law, each employer must
decide for himself the nature and
extent of his compliance-always
aware that any step he takes may
be challenged in court.
That this question Is not the only
one likely to end up in the courts was
indicated plainly yesterday when the
administration issued its broad def
nitions OF professional men, executives
outside statesmen and persons engaged
in retail capacity, all of whom are
exempt from provisions Of the act.
With the definitions. couched in
academic terms and accompanied by
no interpretations or examples Of ap-
plication, came the same unofficial
reminder that employers and employees
must work out their own particular
questions of applicability-with the
courts to furnish the ultimate decision
in event of conflict.
First standard Of professionalism
the administration ruled, Is that work
should be of predominantly INTEL
lectual character as opposed to routine
mental or physical work. Supplement
tary definitions elaborate on this broad
base, but leave the question still open
to debate in connection with numerous
occupations.
Administrators Defined
Administrative and executive en-
ployes were defined basically as those
In supervisory capacity and with au-
thority to hire or fire or affect the
status of other employees.
Exempt retail employees were defined
As those regularly engaged in making
retail sales, the greater part of which
are in intrastate commerce.
Outside statesmen are to be consid-
cred those who customarily do their
selling away from the employers place
Of business
In addition to the reminder that
the courts must eventually settle ir-
reconcilible conflicts of opinion, the
administrator did offer to hold hear
ings for interested parties where ques-
tions arose under the definitions and
regulations.
On the overtime issue, when the
wage-hour law becomes effective, the
Nations standard work week will be
a hours. When employees In inter-
state commerce work more hours, they
must be compensated at the rate Of
time and one-half These provisions
have posed for officials the question
OF the way overtime is to be figured
tor An individual employe,
Unofficial Advice.
This is the unofiicial advice which
some wage-hour authorities have given
IN response to inquiries:
l. Any employe who worked on an
established hourly wage rate must be
paid overtime compensation at one
and one-half times that rate. Such a
rate may have been established by
agreement between the employer and
employe. by contract or by collective
bargaining.
2. A worker now employed on q
nat weekly salary might be worked
overtime without increased total pay
by regarding his hourly rate as being
at a lower figure. ct would have
w w ae 1CdSU Cllc legal
OF rs cents) This is an example of
such q possibility:
Suppose an employe has been work.
Ing for the fiat wage of $25 a week
His employer wants to keep him work.
ing at that wage and also wants him
to continue working six full days, or
4s-hour week. Under this interpre-
tation, the employer could fix the
employees hourly wage on his books
at so cents. This would give the
worker an income OF $22 for his A.
hour week, plus IS cents an hour
for four hours overtime, or a total
of $25.
On the other hand, if an employe
Is covered by an agreement fixing his
pay in terms Of hours worked, this
so-called bookkeeping transaction"
would not be possible.
Clerical Forces Included.
While the wage-hour Office has is
sued no of1cial ruling on overtime
pay for workers now on weekly salaries,
the question in somewhat limited form
was presented to Administrator Elmer
F. Andrews at a recent meeting in
Birmingham. The inquiry concerned
clerical forces.
Clerical forces, we all feel, are in
cluded in the act" Mr. Andrews said.
But I cannot see where there is
going to be any practical difficulty
there because your clerical force in
any plant of any consequence Ger
tainly is earning on a basis of more