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cigar industry in the continental United States and are supplemental to Regulations, Part 522 (Regulations Applicable to the Employment of Learners Pursuant to section 14 of the Fair Labor Standards Act of 1938) as amended.

§ 522.201 Conditions upon which special learner certificates may be granted. Upon application to the Administrator of the Wage and Hour Division, special certificates authorizing the employment of learners at subminimum wage rates in the cigar industry may be issued, to the extent necessary in order to prevent curtailment of opportunities for employment, by the Administrator or his authorized representative under the following terms, when it appears that experienced workers are not available to an employer making application for a special learner certificate and that the issuance of a special certificate will not create unfair competitive labor cost advantages or impair or depress working standards established for experienced workers for work of a like or comparable character in the industry. For the duration of the war emergency an applicant for a learner certificate must also meet the conditions contained in section I (1) of Administrative Order 181.

CROSS REFERENCE: For provisions of Administrative Order 181, see 29 CFR, Cym. Supp., Part 522, note.

§ 522.202 Learner occupations. Special certificates may be issued authorizing the employment of learners in the cigar industry in the occupations of cigar machine operating; cigar packing; hand bunch making; hand rolling; making Italian stogies; hand stripping; and machine stripping.

§ 522.203 Learning periods. (a) The maximum learning period which may be authorized in special certificates issued in the cigar industry for cigar machine operating is 320 hours; for hand rolling, 960 hours; for hand bunch making, 960 hours; for making Italian stogies, 640 hours; for hand stripping, 160 hours; for machine stripping, 160 hours; for packing cigars retailing for more than six cents, 320 hours; and for packing cigars retailing for six cents or less, 160 hours: Provided, however, That a worker experienced in the packing of cigars retailing for six cents or less may be trained as a learner in packing cigars retailing for more than six cents for not more than 160 hours, and that a worker with 160 hours or more of experience in the pack

ing of cigars retailing for more than six cents may not be retrained at subminimum wage rates for any period in packing cigars retailing for six cents or less.

(b) If a worker who is being trained in any machine occupation has been employed in that same occupation within the previous two years, the hours of such employment shall be deducted from the maximum learning period. If a worker who is being trained in any hand occupation has been employed in that same occupation within the previous five years, the hours of such employment shall be deducted from the maximum learning period for that occupation.

§ 522.204 Subminimum rates. (a) The subminimum rates which may be authorized in special certificates issued in the cigar industry shall be not less than 30 cents per hour in the occupations of cigar machine operating and cigar packing; not less than 30 cents per hour for the first 480 hours and 35 cents per hour thereafter in the occupations of hand rolling and hand bunch making; not less than 30 cents per hour for the first 320 hours and 35 cents per hour thereafter in the occupation of making Italian stogies; and not less than 30 cents per hour in the occupations of hand stripping and machine stripping.

(b) In establishments where experienced workers are paid on a piece rate basis, learners shall be paid the same piece rates that experienced workers engaged in the same occupation are paid and earnings shall be based on those piece rates if in excess of the subminimum rates established in paragraph (a) above.

§ 522.205 Number or proportion of learners. (a) Special certificates may be issued to meet normal labor turnover needs authorizing the employment of learners in any authorized learner occupation, not to exceed on any one work day more than ten percent of the total number of workers engaged in that occupation.

(b) Special certificates may be issued to new or expanding plants authorizing the employment of learners in authorized occupations to the extent of need.

(c) For the duration of the war emergency the provisions of section I (3) of Administrative Order No. 181 relating to the issuance of certificates to meet abnormal labor turnover needs, shall be applicable to the employment of learners

in authorized learner occupations in this industry.

§ 522.206 Effective period of certificates. (a) Special certificates issued to meet labor turnover needs may be issued for a period not longer than one year.

(b) Special certificates issued to new or expanding plants may be issued for a period not longer than necessary to complete the training of the total number of learners required by the new or expanding plant.

§ 522.207 Removal of plant or transfer of production. An applicant for a special learner certificate for expansion purposes, who is moving from a plant in another location or is transferring production from such plant, or who has recently so moved or transferred production, shall attach to his application a signed statement giving the following information for the purpose of enabling the Wage and Hour Division to determine whether there is satisfaction of the conditions prescribed by § 522.201:

(a) Name, location and products of the plant from which applicant is moving or is transferring production.

(b) Average and minimum wage rates paid at such plant.

(c) Reasons for removal or transfer of production.

§ 522.208 Employment of experienced workers as learners prohibited. No experienced worker shall be employed under the terms of a special learner certificate.

§ 522.209 Employment of learners prohibited when experienced workers are available. No learner shall be employed under a special learner certificate if at the time such employment begins an experienced worker who is capable of equaling the performance of a worker of ordinary or minimum skill is available for employment.

§ 522.210 Definitions of terms. (a) "New plant" means a plant which is newly established and is being operated for the first time, or which has not been operated more than eight months and in which a substantial number of workers must be trained for the manufacture of the products of the plant.

(b) "Expanding plant" means a plant which is being expanded by the installation of additional mechanical equipment or other production facilities, by again placing into operation machinery which

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has been idle for an appreciable period or by adding an additional shift.

(c) A learner in any machine occupation authorized in § 522.202 is a worker whose experience within the previous two years in that occupation is less than the learning period authorized for that occupation in § 522.203.

(d) A learner in any hand occupation authorized in § 522.202 is a worker whose experience within the previous five years in that occupation is less than the learning period authorized for that occupation in § 522.203.

(e) An experienced worker in any machine occupation authorized in § 522.202 is a worker whose experience within the previous two years in that occupation is equal to or greater than the learning period authorized for that occupation in § 522.203.

(f) An experienced worker in any hand occupation authorized in § 522.202 is a worker whose experience within the previous five years in that occupation is equal to or greater than the learning period authorized for that occupation in § 522.203.

(g) "Experienced worker available for employment" means an experienced worker residing within the area from which the employer customarily draws his labor supply or an experienced worker who has in fact made himself available to an employer at his plant or place of employment and has signified readiness to accept employment.

(h) For the purpose of §§ 522.200522.211 the cigar industry is defined as consisting of:

1. The cigar manufacturing branch of the cigar industry; and

2. The leaf processing branch of the cigar industry, which are defined as follows:

(1) "The cigar manufacturing branch of the cigar industry" means the manufacturer of cigars, from any types of tobacco.

The term "cigar" wherever used in this definition comprehends all types of cigars, including cheroots, stogies, and little cigars.

The manufacture of cigars from noncigar types of leaf tobacco and the scrap tobacco therefrom includes the preliminary processing of such tobacco which is performed in the manufacturing plant as an integral part of the manufacturing operation; and

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(2) "The leaf processing branch of the cigar industry" means the preparation or marketing (including wholesaling) of cigar types of leaf tobacco (as defined by the Bureau of Agricultural Economics of the United States Department of Agriculture) and the scrap tobacco therefrom for use in the manufacture of cigars and other tobacco products.

The term "preparation" as used herein includes all operations involved in making cigar leaf tobacco and scrap tobacco therefrom suitable for use in the manufacture of cigars, whether performed by employees of warehousemen, manufacturers, leaf dealers, or others. It includes, but not by way of limitation, the operations of grading, sorting, packing, sweating, fermenting, stemming, and conditioning. It does not include, however, such preliminary processing of cigar types of tobacco or scrap tobacco therefrom as is performed in a manufacturing plant as an integral part of the manufacturing operations attending the production of tobacco products other than cigars, nor does it include operations performed by a farmer or on a farm as an incident to or in conjunction with farming operations.

§ 522.211 Status of certificates issued under existing regulations. Special certificates previously issued authorizing the employment of learners at subminimum wage rates in this industry, shall remain in effect until they expire.

Bec.

PART 524-EMPLOYMENT OF

HANDICAPPED PERSONS

524.14 Vocational rehabilitation by Veterans' Administration. [Added]

§ 524.14 Vocational rehabilitation by Veterans' Administration. The following provisions, notwithstanding any other section of this part, shall govern the issuance of temporary and special certificates to veterans handicapped by a service-incurred disability (as determined by the Veterans' Administration) employed under any vocational rehabilitation program administered by the Veterans' Administration:

(a) Temporary certificates authorizing the employment of veterans handicapped by a service-incurred disability (as determined by the Veterans' Administration) under any vocational rehabilitation program administered by the Veterans' Administration at wages lower

than the minimum wage applicable under section 6 of the Fair Labor Standards Act may be issued by such representatives of the Veterans' Administration as shall have been duly designated by the Administrator of the Wage and Hour Division, United States Department of Labor, as his authorized representatives for that purpose, whenever employment at such lower rate is necessary in order to prevent curtailment of opportunities for employment. Requests for temporary certificates will not be favorably considered unless:

(1) Other opportunities for the desired training neither exist nor are available in the veterans' community and

(2) The trainees' disabilities preclude initial entrance into training at the minimum wage otherwise applicable.

(b) No wage rate shall be fixed in any temporary certificate authorizing the employment-training of a disabled veteran at less than 75 percent of the minimum wage applicable under section 6 save in exceptional and unusual cases. A certificate, however, will not necessarily be issued at a rate as low as 75 percent of the minimum. In each case the rate will be set at a figure designed adequately to reflect the individual trainee's earning capacity.

In establishments where nonhandicapped workers in the same occupation are employed on a piece-rate basis, the trainee shall be paid on the same piecerate basis and in no case less than the hourly wage rate set forth in the certificate. If the wage rate established by a temporary certificate differs from that established by an applicable Federal or State law, or municipal ordinance, or order, or certificate, or license issued thereunder, the higher wage rate shall prevail.

(c) A temporary certificate shall be valid under the terms and conditions prescribed therein for a period of not longer than three months.

(d) Within 10 days after issuance of a temporary certificate, a copy thereof shall be forwarded by the authorized representative of the Veterans' Administration to the appropriate regional director of the Wage and Hour Division, United States Department of Labor, together with his recommendation covering the agreed subminimum rate or rates for the balance of the veteran's training period. The regional director may then issue a special certificate, prior to the

expiration of the temporary certificate, authorizing the employment-training of the named trainee by the named employer at the subminimum wage rate or rates and for the length of time specified in the training agreement entered into by the Veterans' Administration and the employer.. A special certificate, effective upon the expiration of the temporary certificate, shall be valid for such length of time as the regional director determines to be necessary to prevent curtailment of opportunities for employment, but in no case for a period in excess of nine months from the date of expiration of the temporary certificate.

(e) Where unusual conditions necessitate a period of employment-training at a subminimum wage rate in excess of one year, a renewal certificate may be issued by the Wage and Hour Division, United States Department of Labor, upon the application and recommendation of the authorized representative of the Veterans' Administration.

(f) No employer shall employ any trainee under a temporary or special certificate at a wage rate lower than the rate applicable in such certificate. Each certificate issued under this section shall specify the wage rate or rates at which a trainee may be employed and the length of time for which such rate or rates shall be applicable.

(g) A temporary or special certificate may be revoked, in accordance with the procedure prescribed in § 524.9, by the authorized regional representative of the Administrator for cause at any time.

(h) Each employer to whom a certiflcate may be issued under this section shall preserve such certificate in accordance with the requirements of § 524.5.

(i) The provisions of §§ 524.12 and 524.13 are hereby incorporated in and made a part of this section. (52 Stat. 1068; 29 U.S.C. 214) [Reg., Mar. 25, 1944, 9 F.R. 3629]

Sec.

PART 526-INDUSTRIES OF A

SEASONAL NATURE

526.101 Findings of seasonal industries. [Amended]

§ 526.101 Findings of seasonal industries.

CODIFICATION: The artificial drying, separating into proper lengths, and grinding of bagasse, in the State of Louisiana, was declared to be of a seasonal nature, by Order, Administrator, July 13, 1944, 9 F.R. 8175.

The declaration with respect to grain, soybeans, flaxseed and buckwheat, receiving into elevators, June 13, 1941, 6 F.R. 2889, was corrected, by Order, Administrator, Aug. 25, 1944, 9 F.R. 10593.

PART 545-HOME WORKERS IN THE NEEDLEWORK INDUSTRIES IN PUERTO RICO

Sec. 545.1

545.3

545.8

Applicability. [Revised]

Filing of designs and notification of operations. [Revised]

Piece rates adopted by employers. [Amended]

545.11 Piece rates established in accordance with § 545.7. [Revised]

AUTHORITY: §§ 545.1 to 545.11, appearing in this Supplement, issued under 52 Stat. 1066, 54 Stat. 616; 29 U.S.C. 211 (c), 206 (a).

SOURCE: §§ 545.1 to 545.11, appearing in this Supplement, contained in Regulations, Administrator, Dec. 26, 1944, effective Jan. 1, 1945, 9 F.R. 15140.

§ 545.1 Applicability. The provisions of this part shall apply only to persons engaged in activities relating to home workers in the needlework industries in Puerto Rico as defined in Part 655 of this chapter.

§ 545.3 Filing of designs and notification of operations. Every employer prior to the distribution of work to any home worker shall file with the Wage and Hour Division in Puerto Rico (a) a copy of each design, if any, and (b) a description of each operation, whether or not part of a design, to be performed by any home worker, together with the full Piece Rate Schedule designation, if any,' and the style numbers of the goods upon which such designs shall be made and operations shall be performed,' and the corresponding piece rates to be paid for each such operation.

§ 545.8 Piece rates adopted by employers.

CODIFICATION: Footnote 6 in § 545.8 was amended to read as follows:

"See Part 655 for the applicable hourly rate for the different divisions and classifications of the needlework industries.

2 For example, if "plain scallops" were to be made on articles in the "Infants' Wear Division," the full Piece Rate Schedule designation would be "Schedule A, III, 8, Col. 3."

Thus, the design or description of the operation will be assigned a designation in addition to the description of the goods (style number) upon which the designs are to be made.

§ 545.11 Piece rates established in accordance with § 545.7.

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1 The piece rates apply only to "hand-sewing" operations. For descriptions of operations included under "handsewing", see definition in applicable section of wage order.

2 First seam by machine.

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