Detroit evening times. (Detroit, Mich) 1921-1958, 1942-09-13
On the
Business
Front
By WARD SCHULTZ
Detroit Times FlaAscial Editor


An increasing number of white
collar workers, including those
in some of the banks, are now
getting time and half for
overtime.
Behind the trend is a combi-
nation Of TWO factors.
One is the increasing compe-
tition of war industries IN the
field Of clerical help. Even with
salaries comparatively even.
overtime tips the scales in favor
OF the war plants.
The Other factor is the inter
probation Of the Nariabls-work-
week under the Wages and
Hours Act which has made it
almost impossible 10 determine
when an employe is entitled to
time-and-s-half.
II is this latter point that
offers the most interesting angle.
Under the act, there are two
types OF workers; those on a
fixed work week and those on a
variable work week.
The variable worker is paid
a fixed monthly or weekly sal
airy for particular job. but his
hours worked vary each week.
In other words, the employees
work is of a uniform nature and
The hours over 40. are incurred
because of a regular feature Of
that given job.
The act specifically permits
employer OF those working on
variable week 10 compute
overtime by dividing the salary
by the number of hours worked
in order TO get the hourly rate.
Then, il is understood that the
employe has already been COM
pensated in his regular salary
for all of the hours worked
and need only he paid extra
half time" for the hours
over 40.
Thus, an employe making $40
a week. but working "a hours
would be getting approximately
81 cents an hour during that
specific week. He woald have
already received straight pay
for the "a hours but would get
S1.S2 as half time for the extra
four hours.
However. If that same en-
ploye worked AZ hours, he would
be getting only S3 cents an
hour and would get half time
extra at that rate. or 1882 for
his extra eight hours.
In short. his overtime rate per
hour diminishes the longer he
works.
Some firms used this method.
some paid il at straight half
TING and elirniesst:1S '.Aevdimin-
ishing return feature. and still
others paid straight full time for
overtime.
But they ran into a buZz-saw.
Wages and hours adminiStra-
tors point out that this half
time was legal only for uniform
work on a given job.
The moment an 2 mp oye
worked a minute overtime on an
extraordinary item, he was en-
titled TO time and half.
With many firms being short
handed. clerks were frequently
called upon to finish up some
one else's work, or TO take on
additional work. The minute this
was done, they ceased 10 be
variable week" employees.
This has become such head
ache for personnel departments
that many companies and at
least two Of the big banks here
have recently switc he d TO
straight time-snd-a-half for
overtime. Incidentally, one of
the larger banks has always paid
time-apd-a-half from the very
start OF the Wage Hour law.
The complexity of the law and
the competition of the war
plants may be headache 70 the
business men but they're money
in the bank for the white collar
workers.
PERSONAL NOTES: Cleve-
land claims It's news when want
ads carry n $40 reward for in
formation leading TO the renting
OF homes, but here In Detroit
rewards OF up to $50 have been
listed Carl Zuber Of First
Of Michigan Corporation has
taken his exams for navy
commission And Henry
Schaefer Of the National Bank
of Detroit has already taken an
exam for the army air corps =.
Look for rationing Of auto parts
tn follow gas rationing DR..
William Jay Hale Is repeatedly
spending part Of his time on
secret work at the Reichhold
Chemical Company here In De-
trOit The war will exhaust
United States lead deposits, a
long war would erase zinc de-
posits and tin reserves will he
gone In IL months.
The wives OF men In the mill.