Evening star., 1942-10-30
Byrnes Regulations
Will Preclude Few
Salary Increases
Only Those Earning
$4,000 or More Are
Definitely Cut OFF

A hand-picked crew of Treasury
experts today dug into the job of
drafting detailed salary stabilization
regulations, the broad outline of
which now indicates that the ouly
unerganized white collar workers
definitely doomed to go raiseless for
the duration are those earning more
than $25, 900 q year net income.
Except for deductions Of Federal
income taxes, customary charitable
contributions, life insurance pre-
miums and fixed obligations, the
annual income Of those in the upper
brackets was firmly pegged at the
$25, 900 figure.
But the Treasury's Interpretation
of Economic Director James E.
Byrnes' salary regulations made it a
different story for the big majority
of persons who earn less than that
each year.
In the long list Of unorganized ex-
ecutive, administrative and profess
sional people who receive less than
$1,000, plus those of all classes be-
tween $1,000 and $25,0O0, Treasury
Epokesmen said, there was scarcely a
situation which absolutely precluded
the possibility of a raise.
Increases Permitted,
While the Treasury version of the
Byrnes regulations had no bearing
on the War Labor Boards RESPONSE
bility, which includes all wages and
many salaries up to $1,000, some
observers felt this Interpretation
might also be true in those brackets.
The WLB and Treasury regula-
tions permit increases made in ac-
cordance with terms of established
wage or salary agreements or estab-
lished wage or salary rate sched-
ules-without necessity of specific
approval-if the raise is in one of
the following classes:
/. Individual promotions or re-
classifcations at higher wages.
2. Individual merit increases"
within the pay ranges already estab-
hshed by the employer for the kind
Of job.
3. Increases under established
plans based on length of service
(where the employe is scheduled to
get . higher salary at the end of
each six months or year or some
other period Of service).
4. Increased payments based on
greater productivity under piece
work or so-called incentive plans.
S. Raises under an apprentice or
trainee system-where an employe
gets higher pay after a period OF
training.
6. Any other reasons or circum-
stances which may be prescribed by
future orders or rulings.
Cannot Affect Prices.
There is just one "if" on the
above qualifications-"No such in
crease shall result in any substan-
tial increase Of the level of costs or
shall furnish the basis either to in
crease price ceilings Of the COM
modify or service involved or to re-
sist otherwise justif1able reductions
in such price ceilings"
In the absence Of an existing
agreement or schedule, the employer
will have to get approval, as fol-
lows:
From the WLB in the case of all
wages defined as payments based
on hourly, daily or piecework rates)
and In the case of such salaries
(that is, payments by the week or
BY longer periods) Of 5000 or less
where the employees are represented
by a recognized or certified labor
organization or where the employees
are not employed in a bona -fide
executive, administrative or profess
sional capacity;
From the Treasury in the case of
all other salaries.
AS a matter of governmental pol-
Icy, it seems clearly the intention to
keep In motion the incentive to do
better work, through continued op-
GRAFTON of the types of raises listed
In the regulations-though for the
moment they are held within the
framework of existing agreements
or rate standards.
President Roosevelt's executive
order to stabilize the cost of living
made provision for increases "neces-
sary to correct Embellishments or
inequalities, to eliminate substand-
ards Of living, to correct gross in
equalities, or to aid in the effective
prosecution of the war"
Much Less Probable.
His order also made exception "in
instances in which an individual has
been assigned to more difficult or
responsible work.
However, the catch in the overall
picture was the obvious fact that
while these raises will be possible
they will be lot less probable under
the sterilization program.
Under terms of the Byrnes regu-
lations, Assistant Treasury Secre-
tary John L. Sullivan said there
were several ways by which raises
could be given without even con-
sultng the commissioner of internal
revenue. In addition, he pointed
out, countless additional cases might
find the Bureau Of Internal Revenue
I.