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Mr. LUNDQUIST. We examine for compliance with the Equal Pay Act in every investigation. Generally we are finding compliance in the firms that we are investigating.
Mr. FLOOD. Union firms?
Mr. LUNDQUIST. No, nonunion firms as well, because in these firms many of the establishments do not have the problem since they do not employ women and men in the same job. The Equal Pay Act is applicable in situations only where you are trying to employ a woman doing equal work, involving skill, effort, and responsibility. Mr. FLOOD. That is very clear. That is a good answer.
WOMEN'S KNOWLEDGE OF RIGHTS UNDER EQUAL PAY ACT
The final question. Again with reference to the Equal Pay Act and women, what makes you think that the women know of their rights or the existence of this law in all these places, be they union or nonunion? What makes you think the average female in the United States knows about this? I don't think she does.
Mr. LUNDQUIST. I don't think she knows as well as we would like her to know.
Mr. FLOOD. I don't think she knows a darn thing about it.
Mr. LUNDQUIST. I think she knows when her neighbor down the street is doing the same work that she is doing in the same establishment and she ultimately, through her own ingenuity, finds out he may be getting 10 cents an hour more than she is. She may know about it. She may not want to do anything about it.
Mr. FLOOD. That is something else. I am not talking about her action but I am talking about her knowledge of the fact and the law. Mr. LUNDQUIST. I think she may know more about it than we know she knows about it since she does not tell us about the possible violation.
EDUCATIONAL PROGRAM UNDER EQUAL RIGHTS ACT
Mr. FLOOD. Is it your job to have an educational program to be sure that the average female worker in any shop knows of this law and her rights?
Mr. LUNDQUIST. Yes; we and the Women's Bureau work at this daily. We are before the clubs and groups, and the Women's Bureau representatives also are doing this.
Mr. FLOOD. Television, radio, newspaper, seminars?
Mr. LUNDQUIST. Yes.
Mr. FLOOD. You are sure of that?
Mr. LUNDQUIST. Yes; we are to the extent we can be.
Mr. FLOOD. Just a lick and a dash or do you put a rifle on it?
Mr. LUNDQUIST. We work at it vigorously; yes,
Mr. FLOOD. That is all, Mr. Chairman.
Mr. DUNCAN. I have no questions.
Mr. FOGARTY. Thank you very much, Mr. Lundquist.
SALARIES AND EXPENSES
Amounts available for obligation
Appropriation or estimate.
Proposed transfer from "Unemployment compensation for Federal employees and ex-servicemen," for pay increases (Public Law 89-301, effective Oct 10, 1965)
Comparative transfer to the Office of the Secretary for Regional Administrative Offices.
Estimated program supplemental to be transferred from "Unemployment compensation for Federal employees and ex-servicemen," for Service Contract Act.
Appropriation or estimate, revised.
Obligations by activity
Summary of changes
1966 enacted appropriation___
Proposed transfer from “Unemployment compensation for Fed-
Comparative transfer to Office of the Secretary for Regional
Estimated program supplemental to be transferred from “Un-
1966 appropriation, revised..
$20, 905, 000
264, 000 -138,000
21, 381, 000 22, 256, 000
Net additional cost to place financing of pay increases on a full-year basis_____
Net additional cost of within-grade promotions effective for
Net cost of within-grade promotions becoming effective in 1967–
To provide full-year cost of space acquired during 1966_-
Nonrecurring equipment costs for new positions established
Subtotal, mandatory items___.
+111, 800 +108, 200 +10,000
+700 +16, 200
Decrease to reflect change in usage of WCF services.
To provide for full-year cost of duties imposed by the Service
To increase cost of industry committee members because of
To reduce costs due to temporary suspension of the program for
1 This item reflects the transfer of 13 positions and $138.000 to the "Office of the Secre tary, salaries and expenses," appropriation for the establishment of 7 regional administrative offices.
NARRATIVE EXPLANATION OF MANAGEMENT IMPROVEMENT REDUCTIONS
A reduction of $225,200 is reflected in the budget request for 1967 due to a temporary suspension of activities related to the program for issuing new or revised wage determinations under the Public Contracts Act. Of the total savings, $118,200 results from suspension of wage surveys conducted by the Bureau of Labor Statistics. Until related court action has been completed or alternative methods for making wage surveys are developed, no new wage determination proceedings will be initiated.
During fiscal year 1965 personnel in the Branch of Public Contracts Wage Determinations were detailed to assist in other programs. Further adjustments in staffing are being made in fiscal year 1966 which will result in the reassignment of employees in 11 positions in the Branch of Public Contracts Wage Determinations by the end of the current fiscal year.
Savings of $70,000 are estimated for 1967 due to reductions in expenditures for travel and supplies. The budget request for 1967 reflects a decrease of $20,000 resulting from improved inventory control and procurement techniques in connection with the establishment of Regional Administrative Services Offices by the Department of Labor. Savings of $50,000 are estimated from the extensive use of Government-owned vehicles, use of less than first-class common carrier transportation and the increased assignment of investigators to field stations locations close to the workload to keep travel expenditures to a minimum.
ACTIVITY 1. ENFORCEMENT
$17, 611, 200 17, 976, 000
NARRATIVE DESCRIPTION OF PROGRAM
The Wage and Hour Division administers the Fair Labor Standards Act, the Walsh-Healey Public Contracts Act and the Service Contract Act of 1965 to obtain compliance with minimum standards respecting wages, hours, equal pay, child labor, safety and health, and other conditions of employment required by these statutes. The Fair Labor Standards Act applies to employees engaged in interstate commerce or in the production of goods for interstate commerce, and to employees in certain large enterprises so engaged. There are approximately 29.6 mililon employees in some 1.1 million establishments who are covered by the Fair Labor Standards Act. The Walsh-Healey Public Contracts Act applies to certain Government supply contracts in excess of $10,000 and the Service Contract Act applies to contracts with the Federal Government, the principal purpose of which is to furnish services through the use of service employees. Information media are used extensively to minimize unintentional violations, and investigations are made to assure compliance with the laws, assist workers in recovering wages unlawfully withheld and to assist employers in meeting legal requirements.
Investigation results, fiscal years 1964 and 1965, and estimated results for fiscal years 1966 and 1967
1 Approximately 1,400 additional inspections are made annually by State personnel. 2 Made by safety engineers only beginning May 1964.
The 1961 amendments to the Fair Labor Standards Act became effective September 3, 1961, and provided for an extension of coverage to some 200,000 large retail and service establishments and other firms, principally construction, employing some 3.6 million workers. Effective September 3, 1965, the minimum wage for these employees was increased from $1.15 to $1.25 and at the same time they became entitled to the payment of at least time and one-half the regular rate of pay after 40 hours in a workweek instead of after 42 hours as had been required since September 1964. With these changes in the act, all covered and nonexempt employees are now under the same minimum wage and overtime standards. The progressive changes in minimum wage and overtime standards resulting from the 1961 amendments to the Fair Labor Standards Act are shown by fiscal year in the following tabulation.
As a result of these successive changes in minimum wage and hour standards, about 2.6 million workers were entitled to receive wage increases on September 3. 1963, and about 565,000 were entitled to receive increases on September 3, 1964. The $1.25 minimum wage standard effective September 3, 1965, required increases for about 800,000 workers.
In fiscal year 1965, investigations disclosed a substantial increase in violation findings over the previous year. With approximately the same number of investigator man-years expended in 1965 as in 1964, some $74.5 million in underpayments were disclosed, an increase of 25 percent over the $59.7 million disclosed in fiscal year 1964. Application of the higher minimum wage and over