welfare; it will request information from the States on their laws and experience. The Commission is to complete its work and publish a report by October 1, 1963. In accordance with the recommendations of the Chairman and Vice Chairman, the present budget contemplates the establishment of six subcommittees to develop plans and recommendations in the major subject areas specifically mentioned in the Executive order. A staff of five professional persons and eight supporting clerical staff is requested to serve the Commission itself. A staff of six professional persons and six supporting clerical staff is requested to service the six subcommittees. The budget also provides for necessary nonpersonal services. PRESIDENT'S COMMISSION OF THE STATUS OF WOMEN, FISCAL YEAR 1963 EXPLANATION OF ESTIMATE BY OBJECT Personnel compensation, $198,000 This estimate provides for 25 full-time positions. The lapse of $25,548 is based on having the six GS-15 ($13,749) technician positions serving the subcommittees filled approximately 75 percent of the year, and the writer-editor position, GS-14 ($12,230), about 60 percent of the year. It is estimated the lapse will be 25 percent on the technician positions and 40 percent on the writer-editor position, for the equivalent of two full-time positions. The $8,000 item shown as "intermittent employment" provides for one consultant to work approximately 22 days or a month for each of the six subcommittees. At $55 per day this consultant service would cost an estimated $7,200 for fiscal year 1963. An additional $800 provides for other consultant service. Personnel benefits, $14,650 This estimate provides for the Commission's contribution to employees' group life insurance fund, employees' health benefits fund, retirement fund, and the employers' contribution under the Federal Insurance Contribution Act, as follows: Employees' group life insurance_ Employees' health benefits.. FICA taxes__ Total___. Travel and transportation of persons, $35,200 This estimate provides for the following travel costs: 1,125 days of travel, at $16 per day. $850 1, 100 12, 450 250 14, 650 $18,000 17, 200 All other transportation costs. Total___. Allocated as below: 35, 200 Commission's quarterly meetings (10 members, 4 meetings of 3 days each, each, $30 per day, and transportation of $950 per meeting). 7, 400 15,000 12, 000 100 700 35, 200 The estimate for communications consist of $150 per month for switchboard services ($1,800) plus $450 per month ($5,400) for long-distance toll charges. The estimate for rent is based on 7,000 square feet at $6 per square foot, amounting to $42,000. Communication costs Rent____ Total.... $7, 200 42, 000 49, 200 Printing and reproduction, $8,000 Provides for $5,000 for reproduction services, $2,500 for printing an interim report, and $500 for miscellaneous job printing, such as letterheads and envelopes. Other services, $2,000 Cost of recording services for four meetings at $500 each. Supplies and materials, $2,050 For miscellaneous supplies, estimated to cost approximately $160 per month and $150 for books. Equipment, $5,900 The only equipment provided for is dictating machines, file cabinets, and typewriters. Commission staff: Summary of new positions Senator HILL. I noticed new positions you are asking for include a social science adviser. How do you define a social science adviser? Mrs. PETERSON. All I can say about that is that I describe to our personnel people the type of person I want, and they tell me that this is a social science adviser. This would be the position we would have for the field staff in six regional areas. This is a person who has broad knowledge of the area of employment especially related to women's problems. Such a person must know what is needed in the field of training, they need to know about protective legislation, what laws are involved, etc. The job requires a good deal of practical knowledge gained from actual work with State groups, women's organizations. It is necessary to know what these areas are, what the opportunities for training are, and so on. It requires a large, broad area of knowledge and a skill in personnel relations. The occupational term they have used for this is social science adviser. Senator HILL. You have brought us a most informative and interesting statement, and we want to thank you all very, very much. WAGE AND HOUR AND PUBLIC CONTRACTS DIVISIONS STATEMENTS OF CLARENCE T. LUNDQUIST, ADMINISTRATOR; FRANCIS J. COSTELLO, ASSISTANT ADMINISTRATOR; SAMUEL GANZ, ASSISTANT ADMINISTRATOR; IRVING LEVINE, DIRECTOR, OFFICE OF ADMINISTRATIVE MANAGEMENT; WILLIAM R. REISE, ACTING CHIEF, DIVISION OF MANAGEMENT OPERATIONS AND SERVICES; ALSO FROM THE OFFICE OF THE SECRETARY OF LABOR; V. S. HUDSON, DEPUTY ADMINISTRATIVE ASSISTANT SECRETARY AND C. D. CARLSON, ADMINISTRATIVE OFFICER APPROPRIATION ESTIMATE "WAGE AND HOUR DIVISION "SALARIES AND EXPENSES "For expenses necessary for performing the duties imposed by the Fair Labor Standards Act of 1938, as amended, and the Act to provide conditions for the purchase of supplies and the making of contracts by the United States, approved June 30, 1936, as amended (41 U.S.C. 35-45), including reimbursement to State, Federal, and local agencies and their employees for inspection services rendered, [$17,307,000] $17,765,000." To restore 1962 salary money used 10 months in 1962 to finance To provide for annualization (2 months) of the per diem increase $17, 307, 000 17, 765, 000 +458, 000 +268, 000 +117, 000 +23, 000 To provide for defense mobilization allocation shown with Total change.......... Summary of new positions-Departmental Office of enforcement and program planning: Total (5)- PREPARED STATEMENT Senator HILL. Mr. Lundquist of the Wage and Hour and Public Contracts Divisions. We are glad to have you and your staff back with us and we will be glad to have you make any statement you may desire to make. Mr. LUNDQUIST. I have filed a full statement with the committee, and I have a summary statement which I will present if you concur. Senator HILL. You full statement will appear in the record at this point. (The statement referred to follows:) STATEMENT OF CLARENCE T. LUNDQUIST, ADMINISTRATOR, WAGE AND HOUR DIVISION Mr. Chairman and members of the committee, the Division's request for fiscal year 1963 is $17,765,000 which provides funds for the continuation of our fiscal year 1962 program level. The amount represents an increase of $458,000 from 1962 to provide for the regulated promotion of investigators for defense mobilization activities financed in 1962 from other accounts, and for adjustments in travel obligations resulting from changes in travel allowances. The programs which the Division is obligated to conduct and the size of the workload we face will require the most strenuous efforts and will tax our ingenuity to the fullest. ENFORCEMENT NEEDS The 1961 amendments to the Fair Labor Standards Act, effective September 3, 1961, will continue to have a tremendous impact on the size and nature of our workload during fiscal 1963. These amendments were the most substantial and sweeping changes in the law since its enactment in 1938. For the first time since 1938, coverage of the act was expanded. The 1961 amendments extended the act's benefits to 3,600,000 additional workers making a total of 27,600,000 employees now subject. The amendments also added an additional 100,000 establishments to the 1 million previously covered. For the 24 million previously covered employees the minimum wage was increased from $1 to $1.25 per hour to be effective September 3, 1963, with an interim increase to $1.15 per hour on September 3, 1961. It is estimated that 1,900,000 of these were receiving less than $1.15 an hour and 3 million were receiving less than $1.25 per hour. For the 3,600,000 employees newly covered by the wage-hour law, the statute provides that these workers will be entitled to $1.25 as of September 3, 1965, this rate to be attained in stages as follows: $1 per hour as of September 3, 1961, $1.15 per hour on September 3, 1964, and $1.25 on September 3, 1965. As of last summer 700,000 of these 3,600,000 workers were earning less than $1; 1,100,000 less than $1.15; and 1,300,000 less than $1.25. In addition, newly covered workers will be entitled to the time and one-half for overtime provisions after 44 hours per week from September 3, 1963, after 42 hours from September 3, 1964, and after 40 hours from September 3, 1965. These varying minimum wage and overtime standards for previously covered and newly covered employees have the effect of requiring us to administer two sets of constantly changing standards for different groups of employees over a 4-year period. Significant and substantial changes were also made in many other provisions of the act. The 1961 amendments provided a new basis of coverage, the enterprise, and made some 15 major changes in the coverage and exemption provisions of the act. These changes have thrown a tremendous enforcement burden on the Division. A considerable part of the wage increases of hundreds of millions of dollars required for millions of employees will not be given to them automatically. This noncompliance must be discovered by investigation and corrected. Since September, the number of complaints, alleging violations of the law, has increased to a level even higher than previously estimated. Complaints are being filed at an annual rate in excess of 17,000, which is the highest in the history of the Wage and Hour Division, except for perhaps the period immediately after the enactment of the Fair Labor Standards Act in 1938. We must investigate these complaints promptly if the law is to be properly enforced. In fiscal year 1961 investigation findings reached new highs. Minimum wage and overtime underpayments increased to almost $31 million from the $28 million found due in 1960. Also, the number of employees underpaid, the amount paid to employees and the number of minors found illegally employed increased over 1960. During the first 6 months of fiscal year 1962, underpayments disclosed by investigations have remained high, in spite of substantial, but necessary, diversions of time devoted to training new investigators, retraining experienced investigators, and servicing hundreds of thousands of letters, telephone calls, and personal inquiries from employers and employees and their representatives. This appropriation request provides for an enforcement staff at the same level as is authorized for the current fiscal year. This staff when fully trained should enable us to meet our new responsibilities. On September 3, 1963, when statutory changes in the minimum wage and overtime standards take place, the Division will be faced with the additional impact of these changes. Although the Division normally maintains a year-round educational program, and the 1961 amendments necessitated a broad-scaled informational program, there will be a continued need to alert nearly 28 million employees and approximately 1,100,000 establishments of the changes in the act as each change becomes effective. PUBLIC CONTRACTS WAGE DETERMINATION PROGRAM The volume of Government procurement subject to the Public Contracts Act has been increasing. For example, the value of contract awards reported to the Division by the various procurement agencies rose more than 40 percent between fiscal year 1960 and fiscal year 1961. Concomitant with this development, there has been an increasing number of inquiries relating to questions of applicability of prevailing minimum wage determinations, determinations of regular practice, exemptions, basic coverage of the act, and eligibility of individual bidders. Recently there has been considerably greater public interest and participation in the wage determination program which has added appreciably to the complexity of the proceedings. |