conclusions as well as the reasons or basis therefor upon all the material issues of fact, law, or discretion presented on the record. When a committee, acting through a quorum, has presided at the reception of evidence, this report shall be its final report on the matters referred to it. Where, however, a subcommittee has presided at the reception of evidence, this report shall be an initial report, and the committee shall meet thereafter to review the report and rule on exceptions in its final report. Where the committee presides at the reception of evidence and proceeds to final decision every party shall be regarded as having objected to any wage rate or classification at variance with any he proposed in his prehearing statement unless he accepted such a rate or classification in any submittal made pursuant to 511.15. A copy of the report shall be signed by each member of the committee who approves it, either at a meeting of the committee or by circulation of one or more copies among the members of the committee. At any time within 3 days after the committee report is signed by those who approve it, members dissenting therefrom may collectively or individually submit signed reports stating the reasons for their dissent. § 511.17 Records. Each industry committee shall keep a Journal recording the time and place of all its meetings, the members present, the votes, and other formal proceedings, including the appointment of subcommittees. Subcommittees shall keep a similar journal. No report of committee or subcommittee discussions need be included. All hearings shall be recorded. The record of any hearing before any subcommittee shall be transcribed. All hearings before a committee shall also be transcribed in whole or in part whenever the Administrator so directs upon his own motion or upon the motion of any party or any person compelled to submit data or evidence and upon the payment of costs prescribed by the Administrator. Promptly after completion of the committee's final report, the committee chairman shall certify the report and transmit it to the Administrator. As soon as practicable thereafter, the committee staff shall transmit to the Administrator (a) all committee and subcommittee journals, (b) all applications for leave to participate as parties together with the record of action thereon, and (c) the record, including any transcript of testimony and exhibits, together with all papers and requests filed in the proceedings. These documents shall be available for inspection and copying by interested persons at the Office of the Administrator during usual business hours. [26 F.R. 6514, July 20, 1961] § 511.18 Publication and effective date of wage order. Promptly after receipt of the committee report the Administrator shall publish the committee recommendations in the FEDERAL REGISTER and shall provide by order that the recommendations contained in such report shall take effect upon the expiration of 15 days after the date of such publication. Any interested person may at any time file a petition with the Administrator for an amendment to the regulations contained in this part or for an amendment to a wage order applicable to him. In view of the statutory requirement that the minimum rates of wages established by order under section 6 of the Act be reviewed by an industry committee at least biennially, substantial cause must be shown in support of any petition for an amendment of a wage order out of regular course. Any interested person may also file a petition at any time with the Administrator for a public hearing under section 13(e) of the Act to determine whether economic conditions warrant rules or regulations providing reasonable limitations or allowing reasonable variations, tolerances, or exemptions to or from any or all of the provisions of section 7 of the Act with respect to employees in American Samoa for whom the Secretary of Labor has established minimum wage rates under section 6(a)(3) of the Act and the regulations contained in this part. Whenever it appears to the Secretary of Labor, by reason of such a petition or otherwise, to be probable that such a hearing is likely to reveal that economic conditions warrant such action, notice of such hearing specifying the procedure to be followed will be published in the FEDERAL REGISTER. [27 F.R. 10651, Nov. 1, 1962] PART 512 [RESERVED] (a) Acts. The term "acts" means the Fair Labor Standards Act of 1938 (act of June 25, 1938; Chapter 676, 52 Stat. 1060, 29 U.S.C. 201) and the Public Contracts Act (act of June 30, 1936; 49 Stat. 2036; 41 U.S.C. 35-45). (b) Administrator. The term "Administrator" means the Administrator of the Wage and Hour Division of the United States Department of Labor. (c) Division. The term "Division" means the Wage and Hour Division of the United States Department of Labor. (d) State. The term "State" means any State of the United States or the District of Columbia or any Territory or possession of the United States. (e) State agency. The term "State agency" means the agency in the State charged with the administration of labor laws which necessitate inspection of places of employment for (1) enforcement of State child-labor regulations and (2) enforcement of State maximumhour or State minimum-wage regulations. (f) Official forms. The term "official forms" means forms prescribed by the Administrator or the Secretary of Labor. § 515.2 Agreements with State agencies. (a) Purpose. The Secretary and the Administrator may enter into agreements with State agencies for the utilization of services of State and local agencies and their employees in making investigations and inspections under the acts and for reimbursement therefor, when such State agencies have submit ted plans of cooperation for such purposes and such plans have been found to be reasonably appropriate and adequate to carry out the respective functions of the Secretary and the Administrator. (b) Certificates of attorneys general. No such agreement shall become effective and operative until a statement of the Attorney General of the State, or, if the Attorney General is not authorized to make such a statement, the State official who is so authorized, has been received by the Division and the Secretary of Labor certifying that the agreement is valid in the form as executed under the laws of the State. § 515.3 Qualifications of the State agency. The State agency shall have as its primary function the administration of State labor laws and shall be under the direction of an executive who gives full time to the work of the agency. The agency shall be engaged in inspecting places of employment for (a) enforcement of State child-labor laws and regulations, and (b) enforcement of State maximum hour or minimum-wage laws and regulations. An administrative division of the State agency shall be designated to make investigations and inspections under the acts; qualified staff, under adequate supervision, shall be specifically assigned for work connected with State and Federal child-labor, maximum-hour and minimum-wage laws and regulations; and provision shall be made to inspect any establishment subject to the acts. The State agency shall submit a plan, in quadruplicate, which shall include the following: (a) A copy of the act establishing the State agency, copies of the laws administered by the State agency, and if there is an act specifically authorizing the State to cooperate with the Division or the Secretary of Labor, or both, a copy of such act. (b) A description of the organization of the State agency, illustrated by organization charts, showing the delegation of responsibility and lines of authority to be followed within the agency in the enforcement of the act and State labor laws. (c) A description (1) of the manner in which investigations and inspections under the acts will be coordinated with the investigations and inspections for enforcement of State child-labor, maximum-hour and minimum-wage laws and regulations; (2) of the location of offices of the administrative division designated to make inspections under the acts, with the job titles of employees located in each such office and employees assigned to work in connection with the acts so designated; and (3) of the manner in which the work of inspectors will be supervised. (d) Provisions for the establishment and maintenance of personnel administration, with respect to personnel engaged in work under the acts for the Division and the Secretary of Labor in accordance with the following standards: (1) Job classifications based upon an analysis of the duties and responsibilities of positions: (2) A compensation schedule adjusted to State salary schedules for similar positions: Provided, however, That all salaries paid by the State for services rendered in accordance with an agreement entered into pursuant to § 515.2 shall be on the basis of applicable State laws or regulations, or in the absence of such applicable laws or regulations, on the approved and usual scale pair by the State for similar services and shall in no case exceed salaries paid for comparable Federal positions in the competitive classified service. Allowances for necessary traveling expenses shall be on the basis of State laws and regulations governing travel allowances; (3) Assignment of personnel to Federal work only when their qualifications conform substantially with qualifications of Federal employees engaged in similar work, such assignment to be made only after submission to and approval by the Division and the Secretary of Labor of a statement of the training and experience of each person who will engage in Federal work; (4) Appointment of new personnel on the basis of merit, either (i) from lists of eligible persons certified in the order of merit, secured under a merit system through State-wide competitive examinations which prescribe requirements of training and experience in substantial conformity with Federal civil service requirements for similar positions or (ii) from lists taken from Federal registers established through competitive examinations for similar positions, it being understood that such registers may be broken down by States; (5) Adequate training of staff; (6) Promotion on the basis of qualifications and performance; (7) Security of tenure assured satisfactory employees, including right of notice and hearing prior to demotion or dismissal; (8) Prohibition against employees engaging in political activities other than the exercise of their right to vote and to express privately their opinions on political questions. (e) A budget which shall show, in detail, estimated expenditures by the State agency on behalf of the Division and the Secretary of Labor for services to be rendered in connection with the administration of the acts and a budget which shall show estimated expenditure for the enforcement of comparable State laws and regulations during the period covered by the agreement; a statement showing funds appropriated to or allocated for meeting the budget for estimated State expenditures; and a statement showing expenditures by the State agency for the enforcement of comparable State laws and regulations during the last fiscal year. (f) A statement of State requirements in regard to fiscal practices and to appointment of personnel, together with copies of the laws and regulations setting forth such requirements. (g) A statement from the Attorney General of the State or, if the Attorney General is not authorized to make such a statement, from the State official who is so authorized certifying that the State agency has authority to enter into an Agreement with the Division and the Secretary of Labor in accordance with this part. § 515.5 Additional requirements. (a) The State Agency shall follow the procedure set forth in the Inspection Manual for the enforcement of the act and such supplements to or provisions thereof as may be issued from time to time by the Division or the Secretary of Labor; use official forms for recording findings; make reports as required; and carry on the work connected with the administration of the acts in conformity with the plans and budget agreed upon and with the instructions and policies of the Division and the Secretary of Labor. (b) Representatives of the Division and the Secretary of Labor may at any time, upon notifying the State agency, make such inspections and investigations and The accounting records and the supporting data pertaining to expenditures for investigations and inspections under the acts shall be subject to audit by the Division and the Secretary of Labor, annually, or so often as the Administrator and the Secretary of Labor, may require. § 515.7 Transmission of official mail. Subject to the requirements of law and of the regulations of the Post Office Department, franked self-addressed envelopes may be used for communications from the field staff to a State official designated by the Division and the Secretary of Labor, and for communication from the State agency to the Division or the Secretary of Labor. All litigation relating to the enforcement of the acts, other than civil actions for the recovery of wages due instituted pursuant to section 16(b) of the Fair Labor Standards Act of 1938 and all administrative proceedings instituted pursuant to section 5 of the Public Contracts Act shall be undertaken by and be under the direction and control of the Federal Government. Any State agency intending to institute a civil action in behalf of an employee or employees for the recovery of wages due, pursuant to section 16(b) of the Fair Labor Standards Act of 1938 shall notify the Division and the Secretary of Labor prior to the institution of such action. § 515.9 Agreements and approved plans. Agreements and approved plans incorporated therein may be amended upon the consent of the parties thereto. § 515.10 Amendments and repeal. This part may be amended or repealed by appropriate joint regulations issued by the Secretary of Labor and the Administrator: Provided, however, That no such amendment or repeal shall be effective as to any agreement previously entered into by a State agency without its consent thereto. Sec. 516.2 516.3 516.4 516.5 516.6 516.7 516.8 516.9 Subpart A-General Requirements Employees subject to minimum wage Posting of notices. Records to be preserved 3 years. Records to be preserved 2 years. Computations and reports. 516.10 Amendment of regulations. Subpart B-Records Pertaining to Employees Subject to Miscellaneous Exemptions Under the Act; Other Special Requirements 516.11 Employees exempt from both minimum wage and overtime pay requirements under section 13(a) (2), (3), (4), (5), (8), (9), (10), (11), (12), (13), or (14) of the Act. 516.13 516.12 Employees exempt from overtime pay requirements pursuant to section 13(b) (1), (2), (3), (4), (5), (7), (9), (10), (15), (16), (17), or (18) of the Act, and hotel, motel, and restaurant employees exempt from overtime pay under section 13(b) (8). Livestock auction employees exempt from overtime pay requirements under section 13(b) (13) of the Act. 516.14 Country elevator employees exempt from overtime pay requirements under section 13 (b) (14) of the Act. 516.15 Local delivery employees exempt from overtime pay requirements pursuant to section 13(b)(11) of the Act. 516.16 516.17 Commission employees of a retail or service establishment exempt from overtime pay requirements pursuant to section 7(1) of the Act. Seamen exempt from overtime pay requirements pursuant to section 13(b) (6) of the Act. 516.18 Employees employed in industries "of a seasonal nature" who are partially exempt from overtime pay requirements pursuant to section 7(c) of the Act. 516.19 Employees engaged in industries handling and processing perishable agricultural commodities who are partially exempt from overtime pay requirements pursuant to section 7(d) of the Act. 516.21 Sec. 516.20 Employees under certain collective bargaining agreements who are partially exempt from overtime pay requirements as provided in section 7(b) (1) or section 7(b) (2) o the Act. Bulk petroleum employees partially exempt from overtime pay requirements pursuant to section 7(b) (3) of the Act. 516.22 Employees of residential care establishments or bowling establishments partially exempt from overtime pay requirements pursuant to section 13(b) (8) or 13(b) (19) of the Act. 516.23 Hospital employees compensated for overtime work on the basis of a 14-day work period pursuant to section 7(1) of the Act. 516.24 Employees employed under section 7(f) "Belo" contracts. 516.25 Employees paid for overtime on the basis of "applicable" rates provided in sections 7(g) (1) and 7(g) (2) of the Act. 516.26 Employees paid for overtime at premium rates computed on a "basic" rate authorized in accordance with section 7(g) (3) of the Act. 516.27 "Board, lodging, or other facilities" under section 3 (m) of the Act. 516.28 Tipped employees. 516.29 Employees under more than one minimum hourly rate. 516.30 Learners, apprentices, messengers, students, or handicapped workers employed under special certificates as provided in section 14 of the Act. Industrial homeworkers. 516.32 Employees subject to the equal pay provisions of the Act, as set forth in section 6(d). 516.31 516.33 Employees employed in agriculture. 516.34 Domestic service employees. AUTHORITY: The provisions of this Part 516 issued under sec. 11, 52 Stat. 1066, as amended; 29 U.S.C. 211, unless otherwise noted. SOURCE: The provisions of this Part 516 appear at 32 F.R. 9551, July 1, 1967, unless otherwise noted. INTRODUCTORY § 516.1 Form of records; scope of regulations. (a) Form of records. No particular order or form of records is prescribed by the regulations in this part. However, every employer who is subject to any of the provisions of the Fair Labor Standards Act of 1938, as amended (hereinafter referred to as the "Act"), is required to maintain records containing the information and data required by the specific sections of this part. (b) Scope of regulations. (1) The regulations in this part are divided into two subparts. Subpart A of this part contains the requirements applicable to all employers employing covered employees, including the general requirements relating to the posting of notices, the preservation and location of records, and similar general provisions. This subpart also contains the requirements applicable to employers of employees to whom both the minimum wage provisions of section 6 and the overtime pay provisions of section 7(a) of the Act apply. As most covered employees fall within this category, employers, in most instances, will be concerned principally with the recordkeeping requirements of Subpart A of this part. Section 516.3 thereof contains the requirements relating to executive, administrative, and professional employees (including academic administrative personnel or teachers in elementary or secondary schools), and outside sales employees. (2) Subpart B of this part deals with the information and data which must be kept with respect to employees (other than executive, administrative, etc., employees) who are subject to any of the exemptions provided in the Act, and with special provisions relating to such matters as deductions from and additions to wages for "board, lodging, or other facilities," industrial homeworkers, employees dependent upon tips as part of wages, and employees subject to more than one minimum wage. The sections in Subpart B of this part require the recording of more, less, or different items of information or data than required under the generally applicable recordkeeping requirements of Subpart A of this part. Subpart A-General Requirements § 516.2 Employees subject to minimum wage or minimum wage and overtime provisions; section 6 or sections 6 and 7(a) of the Act. (a) Items required. Every employer shall maintain and preserve payroll or other records containing the following information and data with respect to each and every employee to whom section 6 or both sections 6 and 7(a) of the Act apply: (1) Name in full, and on the same record, the employee's identifying symbol or number if such is used in place of name on any time, work, or payroll records. This shall be the same name as |