Evening star., 1940-07-09
Bankers Urge
Wage and Hour
Rules Be Eased
Changes in EmpIoye
Classification Asked
By r. 9. Addison

Declaring the present require
ment to check out at definite
time discourages the ambitious en-
ploye. Francis G. Addison, presi-
dent of the Savings e. Commercial
Bank, today urged changes in the
wage-hour divisions definitions Of
executive" and administrative"
employees.
He made this suggestion at a
hearing held by the Wage and Hour
Division, declaring such a regula-
ton would permit banks to main
tain their present system of MONTH
ly compensation, rather than
changing to payment at fixed rate
per hour.
Mr.. Addison, who also is chair
man of the Legislative Committee
of the D. C. Bankers Association,
was one of eight bankers, represent
ing financial institutions in all
parts of the country, who will re-
inforce the arguments of A. L. M.
Virgins, chairman of the Commit
tee on Federal Legislation of the
American Bankers Association, for
redefinition of the terms "execu-
tive, administrative and profession
al" as they affect employees in banks,
brokerage houses, insurance COM
panies and related institutions. Mr..
Virgins was the first witness.
Would Exempt Tellers.
In appearing before the hearing,
conducted by Harold Stein, Mr.. Ad-
olson cited the efforts that District
Of Columbia banks have made TO
comply with the hour provisions of
the Wage and Hour Act. The new
schedule of hours-from $50 to 2
o'clock on week days-he said, rep
resents 1.-The very limit to which we
can reduce service to the public"
Efforts to bring working hours
within the requirements of the
Wage and Hour Act, he said. had
not worked out successfully from
the point of view of employees. Tell
ers, he declared, should be exempt
from the hour provisions of the act.
Hiring on monthly basis is
what the employees want" Mr.. Ad-
olson asserted" If we 60 on an
hourly basis, it would mean less an
nual income for the employees. We
should like to continue our present
policy of monthly compensation"
Attitude of Banks Cited.
From the inception of the Wage
and Hour Act, Mr.. Virgins said, the
American Bankers Association had
pursued policy of cooperation
despite the fact that it was impos-
sible to say with any certainty that
the legislation covered banks and
their employees.
The attitude of the bankers to-
ward the law" he added, has been
constructive. Banking operations,
however, are not type of business
that can be controlled by the time
clock. BY its nature, banking must
respond to the needs of the public" f."
For this reason, he said, tits diff
flcult to impose rigid and inflexible
hour requirement on banking en-
ployes.
Without a greater fexibility in
hour requirements, he warned,
banks may be forced to reorgan:ze
their entire method of computing
salaries, and change from monthly
compensation to fixed wages per
hour, with overtime. Such a change,
he said, would be undesirable, both
from the point of view of the en-
ployes and the banks. A greater
f1exibility in the hour requirements.
he added, would eliminate the ne
cessity of changing the present sys-
tenn of compensation.
Mr.. Virgins proposed a separation
OF the terms executive" and "ad-
ministrative," and a redefinition of
these terms. Two methods could be
used to redefine these terms. in Or
der to provide greater f1exibility in
the hour requirements of banking
employees, it was said.
One would be redefinition on the
basis OF the nature of an employees
duties and his functions, and the
other would be based on salary.
If the latter yardstick is used, the
American Bankers Association pro-
posed that any employe receiving a
guaranteed monthly salary of $3.50
should be treated as an executive.
and thus exempt from the provi-
sions OF the Wage and Hour Act.
For administrative employees the
salary qualification would range
from $50 to 5000 a month, depend
ing on the size of the city in which
the employing bank is located. The
$50 salary would apply to banks in
cities or towns of less than 10000
population.
The redefinition of executive en-
ploye, based on the duties and func-
tions performed, as submitted by the
American Bankers Association.
would cover any employe Cd whose
primary duty is the management of
the institution, or customarily rec
ognized department thereof; ca who
has the authority to employ and dis
charge other employees, or whose
suggestions and recommendations as
to the employment, discharge, and
promotion of other employees is given
particular weight, and 90 who Gus
tomarily and regularly exercises dis
cretionary powers.
In addition to the American
Bankers Association, other groups
who will urge a change in the reg
ulations defining executive and ad-
ministrative employees include the
National Association of Mutual Saw
ings Banks, the New York Curb
Exchange Partners Association. the
American Investment Co. of Illinois
and the Association of Stock Ex-
change Firms.
Txo1l;- p.~@~I