Evening star., 1942-10-29

employees as to the application Of
the executive order The Wage
Hour Offices, when fully stated, will
be able to tell an individual en-
ployer, for instance, whether an in
dividual or blanket wage increase
In his plant must be approved by
the board to make it legal. Since
some exceptions have been provided,
1t Is expected many questions for
specific interpretations will be asked.
Exemptions From Regulations.
Exempted from the regulations,
for example, are employers of eight
or fewer workers, provided price
ceilings would not be affected by
any increases.
Other exemptions are individual
promotions or reclassifications, in
dividual merit increases within es-
tablished salary rate ranges, opera
ton of an established plan of salary
increases based on length of service,
increased productivity under in
centive plans, and operation of
trainee system or such other rea-
sons or circumstances as may be
prescribed"
If the Wage-Hour office deter
mines that board approval of an
increase is necessary, it will help the
employer prepare the application,
which then will go to one of 10
regional Offices soon to be opened by
the board.
In applying for board approval,
the employer must say whether price
ceilings would be affected and
whether his employees are repre-
sented by a union. Where price
ceilings are involved, an opinion will
be sought from the Office of Price
Administration, and where there is
a union, its officers will be notified
and the union will have an oppor-
tunity to, support or object to the
application.
Explains Policy.
Mr.. Sullivan talked to reporters
this morning and explained some
of the policy under the new regula-
tions. He said that there were be-
tween 10000 and $4,000 persons in
the country who received q salary
in excess of $25, 900 a year.
Under the present tax rate, all
salaries will be limited to- approx
imately $4,000, which will leave
$25 900 annual income after tax pay
ments. The Internal Revenue Bu-
reau will have to use discretion in
determining whether a high-paid
executive can meet his taxes, in
surance and similar obligations
under the $25, ,000-a-year schedule or
whether he will have to be allowed
more salary, he said.
Salary increases granted Govern
ment employees under the Ramspeck
bill would not be affected by the
new regulations.
He also pointed out that there is
nothing in the regulations to pro-
hibit firms which customarily dis
tribute bonuses to employees from
continuing to do so. The regula-
tions governing bonuses were aimed
at high salaried executives, he said.
He emphasized that certain per-
sons, such as movie stars, who re-
ceive large salaries from two or
three companies in the course of q
year, would have to adjust their
income so that the total from all
sources would not allow them a net
of more than $25 900. He said that
the corporations involved in a Sit
uation of this sort would be held
responsible, along with the employe,
if the salary exceeded the legal limit.
He added that lawyers. doctors or
other professional men who were
on the payroll of one company, came
under the regulations, but that pro-
fessional men who are not on sal
ary are not covered.
There will be no appeal from
findings Of fact by the Bureau Of
Internal Revenue or the War Labor
Board, Mr.. Sullivan said, adding,
however, that the courts were open
to persons challenging the consti-
tutionality Of the sterilization reg
ulations.
Administrators Called Here.
Chairman William H. Davis of the
WLB said the Wage-Hour Division
was moving as expeditiously as
possible to prepare its field offices
for the tremendous burden which
they will have to carry under this
arrangement" The Wage Hour
regional administrators were called
to Washington today to study the
boards plans, after which they will
prepare their own organizations in
the field.
ut will, therefore," said Mr.. Davis,
"be at least 10 days before these
field Offices have set up shop and
are ready to 60 to work on their
new job. As soon as the field organ
.zation of the Wage and Hour Divi-
sion is ready to serve the public in
their new capacity. an oticial an
nouncement to that effect will be
made.
Meanwhile. we are asking all
employees and employers who have
questions regarding the application
OF the executive order or who desire
to obtain WLB approval for wage
adjustments not to communicate
either with the field organization Of
the Wage and Hour Division or with
the War Labor Board in Washing
ton. This request IS made solely In
the interests Of efficient administra-
tion."
Tentative Procedure Plans.
Under tentative plans, WLB re-
gional director will be authorized to
pass on applications for wage or
salary increases to which employer
and employees have agreed. II the
regional dfrerfnr rAiarfa -, Av,x.1tn>s