tember 15, 1942, for the particular work in question, or for the same or comparable work in the local area.

(b) An employee has been demoted to a lower position than that filled by him between January 1, 1942, and September 15, 1942, and the salary or wage rate for such lower position is not less than the highest salary or wage rate existing for that position during the same period.

(c) An employee has been relieved of specific duties and responsibilities.

A disparity between salaries and wages paid by a particular employer and those paid by employers generally in the local area does not necessarily constitute justification for a decrease in salary or wage rates paid by such employer. The words "for any particular work" in this § 1100.12 refer to the particular work of the particular employee and not to a particular type of work.

If a specific wage ceiling regulation as described in § 1100.7 has been issued which establishes a lower salary or wage rate than that which an affected employee is receiving, by contract or otherwise, the salary or wage payments of the employee must be decreased to the salary or wage rate established by the specific wage ceiling regulation, unless an employer was paying a particular employee doing the same type of work higher wages or salary payments between January 1, 1942, and September 15, 1942, in which event the employee's payments must be decreased to those received during that period. No approval is required for such decreases.

CODIFICATION: In § 1100.12, the first sentence was amended to read as set forth above, by Regulation, War Food Administrator, June 1, 1944, 9 F.R. 6012. The deleted sentence reads as follows:

In the case of salary or wage payments existing as of the time of the issuance of the regulations in this part, by means of which an employee is paid $5,000.00 or less per annum for any particular work, the general rule is that no decrease can be made by an employer in such salary or wage payment below the highest salary or wage rate paid for such work in the local area between January 1, 1942, and September 15, 1942.

1100.13 Scope of part-(a) Geographical. The provisions of this part shall not apply to salaries or wages in any territory or possession of the United States.

(b) Services in foreign countries. The provisions of this part shall not be applicable in the case of any individual employer resident in the United States or any territory or possession thereof, or of a corporate employer organized under the laws of the United States or any State, territory or possession, with respect to salaries or wages paid by such employers to employees for service rendered exclusively in foreign countries.

(c) Foreign employers. The provisions of this part shall not be applicable in the case of nonresident foreign employers, except

that if any salary or wage is paid to any employee residing in the United States, payment of such salary or wage is subject to all the provisions of this part.

§ 1100.14 Conclusiveness of determination. (a) Any determination of the Administrator that a salary or wage payment is in contravention of the act is conclusive in every respect upon all executive departments and agencies of the Federal Government for the following purposes:

(1) Determining costs or expenses of any employer for the purpose of any law or regulation, either heretofore or hereafter enacted or promulgated, including the Emergency Price Control Act of 1942, or any maximum price regulation thereunder.

(2) Calculating deductions under the revenue laws of the United States.

(3) Determining costs or expenses under any contract made by or on behalf of the United States.

1

(b) Any such determination of the Administrator is final and not subject to review by The Tax Court of the United States or by any court in any civil proceedings. Nothing herein is intended, however, to deny the right of any employer or employee to contest in The Tax Court of the United States or in any court of competent jurisdiction the validity of:

(1) Any provision of this part on the ground that such provision is not authorized by law, or

(2) Any action taken or determination made under the regulations in this part, on the ground that such action or determination is not authorized, or has not been taken or made in a manner required, by law.

$1100.15 Effect of unlawful payments— (a) Amounts disregarded. Section 5 (a) of the act provides in effect that the President shall prescribe the extent to which any salary or wage payments made in contravention of regulations promulgated under the act shall be disregarded by executive departments and other governmental agencies in determining the costs or expenses of any employer for the purpose of any other law or regulation. Pursuant to § 4001.6 of Title 32, in any case where salary or wage payments are determined by the Administrator to have been made in contravention of the act, the entire amount of such payments is to be disregarded by all executive departments and all other agencies of the Federal Government for the purposes of:

(1) Determining costs or expenses of any employer for the purpose of any law or regulation either heretofore or hereafter enacted or promulgated, including the Emergency Price Control Act of 1942 or any maximum price regulation thereunder.

(2) Calculating

deductions

under the

revenue laws of the United States.

(3) Determining costs or expenses under any contract made by or on behalf of the United States.

A payment in contravention of the act may be disregarded for more than one of the foregoing purposes.

(b) Criminal penalties. Section 5 (a) of the act provides in substance that no employer shall pay, and no employee shall receive, any salaries or wages in contravention of the regulations promulgated by the President under the act. Section 11 of the act provides that any person whether an employer or employee who willfully violates any provision of the act, or any regulations promulgated thereunder, shall be subject upon conviction, to a fine of not more than $1,000.00, or to imprisonment for not more than one year, or to both such fine and imprisonment.

§ 1100.16 Determination of violations. Determination by the Administrator that a salary or wage payment is in contravention of the act so as to have the effect specified in §§ 1100.14 and 1100.15, shall be made in the following manner:

All alleged violations will be handled by the Director, for those States for which no State WFA Wage Board has been established, and by the State WFA Wage Board for those States for which State WFA Wage Boards have been established.

(a) Preliminary investigation. Preliminary investigations of all wage or salary payments alleged to be unlawful shall be made by representatives of the Administrator. If the case is one to be handled by the Director, the report of the investigation shall be submitted to the Associate Solicitor in Charge of Food Production and Commodity Credit for consideration. If the case is one to be handled by a State WFA Wage Board, the report of investigation shall be submitted to the Regional Attorney, Department of Agriculture, within whose region the State involved lies, for consideration. The Associate Solicitor shall forward such reports as he receives, with his recommendations, to the Director. The Regional Attorneys shall forward such reports as they receive, with their recommendations, to the Board which has jurisdiction over the alleged violation. If, after consideration of the report and the recommendations, the Director or the Board, as the case may be, is of the opinion that there is reasonable cause to believe that a violation has occurred, the Director or the Board, as the case may be, shall request the alleged violator to appear at a hearing before the Director or the Board, as the case may be: Provided, however, That the Director may designate that a hearing to be held before him, shall be held before a person authorized to act as an examiner, presiding officer, or referee, by the designation, issued October 25, 1943, entitled "Designation of Persons to Hold Hearings, to Sign and Issue Subpoenas, and to Administer Oaths and Affirmations" (8 F.R. 14592). In the event that the Director designates that the hearing shall be conducted by such an authorized person, such a person shall take all steps required by this section for the

holding of hearings, and shall forward the record, together with his recommendation, to the Director.

Where the hearing is conducted by a Wage Board, three members of the Wage Board shall constitute a quorum authorized to conduct such hearing, and the chairman of the Wage Board, or temporary chairman in the absence of the regular chairman, shall act as presiding officer at the hearing, administer oaths and affirmations and rule on motions, requests, and on the admission and exclusion of evidence. [Undesignated paragraph added June 1, 1944, 9 F.R. 6012]

(b) Notice. Notice of the hearing shall be served on the alleged violator not less than ten (10) days prior to the date of the hearing. Such notice shall set forth (1) the time and place of the hearing, (2) a concise statement of the allegations of fact which constitute a basis for the proceeding, (3) a statement informing the alleged violator that he may be represented by counsel at the hearing and will be given full opportunity to present written or oral testimony and to examine and cross-examine witnesses on all matters relating to the charge, and (4) a statement informing the alleged violator that failure to appear will not preclude the Director or the Board, as the case may be, from taking testimony, receiving proof, and making findings and recommendations with respect to the charges.

(c) Conduct of the hearing. The rules of evidence prevailing in courts of law and equity shall not be controlling. The test of admissibility shall be the reliability, relevancy and probative force of the evidence offered.

All testimony shall be given under oath and a written transcript of the hearing shall be made.

The presiding officer shall afford reasonable opportunity for cross-examination of the witnesses. At the close of the hearing, the presiding officer may, at his discretion, allow a short period for the presentation of oral argument, or for a summary of the facts disclosed at the hearing and, if he deems it advisable, may allow briefs to be filed within a period prescribed by him, not to exceed five (5) days.

(d) Findings and recommendations. Upon conclusion of the hearing, if the Director or a majority of the Board, as the case may be, is satisfied that the charge is supported by substantial evidence, the Director or the Board, as the case may be, shall find accordingly. Findings of fact and recommendations shall be prepared, subscribed by the Director, or by concurring members of the Board, as the case may be, and submitted to the Administrator, together with a transcript of the proceedings. A copy of the findings of fact and recommendations shall be served on the alleged violator. After consideration of the findings and recommendations, the Administrator shall determine whether the alleged violator has made salary or wage payments in contravention of the act. A copy

of such determination shall be served by registered mail on the alleged violator.

Within

(e) Petition for reconsideration. five (5) days after receipt of a copy of the Administrator's determination, the alleged violator may file with the War Food Administrator, Washington, D. C., a petition for reconsideration of such determination. Such petition may be accompanied by any affidavits or briefs which the alleged violator desires to submit. Within a reasonable time after receiving such a request for reconsideration, the Administrator shall affirm, modify, or reverse his original determination, or direct a further hearing to be held. Such further hearing shall follow the procedure prescribed for the original hearing. The determination of the Administrator shall be final and shall not be subject to review by the Tax Court of the United States or by any court in any civil proceedings as set forth in § 1100.14 (b) hereof.

CODIFICATION: In § 1100.16 (d), the first sentence was amended as set forth above by Regulation, War Food Administrator, June 1, 1944, 9 F.R. 6012. The deleted sentence read as follows: "Upon conclusion of the hearing, if the Director, or a majority of the Board, as the case may be, is satisfied that the charge has been sustained by a preponderance of the evidence, the Director or the Board, as the case may be shall find accordingly."

was

In paragraph (e), the reference changed from § 1100.15 (b) to § 1100.14 (b), by Regulation, War Food Administrator, June 1, 1944, 9 F.R. 6012.

[Preceding part, in small type, superseded by following part during period covered by this Supplement]

bilization Director, Aug. 28, 1943; Part 4001 of Title 32.

SOURCE: §§ 1100.1 to 1100.18, inclusive, contained in Regulations, Assistant War Food Administrator, Oct. 3, 1944, 9 F.R. 12117,

12611.

§ 1100.1 Definitions. When used in the regulations in this part, unless otherwise distinctly expressed, or manifestly incompatible with the intent thereof:

(a) The term "act" means the Act of October 2, 1942 (Pub. No. 729, 77th Cong.), entitled "An Act to amend the Emergency Price Control Act of 1942, to aid in preventing inflation, and for other purposes", as amended by the Public Debt Act of 1943 (Pub. No. 34, 78th Cong.), entitled "An Act to increase the debt limit of the United States and for other purposes," (Pub. No. 34, 78th Cong., 1st Sess.), and as amended by the Stabilization Extension Act of 1944, entitled "An Act to amend the Emergency Price Control Act of 1942, as amended, and the Stabilization Act of October 2, 1942, as amended, and for other purposes" (Pub. No. 383, 78th Cong., 2nd Sess.).

(b) The term "general regulations" means amended regulations (relating to wages and salaries), promulgated by the Economic Stabilization Director on August 28, 1943, as amended or supplemented (Part 4001 of Title 32).

(c) The term "Administrator" means the War Food Administrator, and any person, or agency, authorized by him to carry out the purposes and provisions of these regulations and other regulations issued by him pursuant to his authority under the "general regulations." (d) The term "Director" means the Director of the Office of Labor, War Food Administration.

(e) The term "person" means any individual, partnership, corporation, association, business trust, or any other organization or group of persons, whether incorporated or not.

(f) The term "in contravention of the Act" means in Contravention of the Act of October 2, 1942 (referred to in paragraph (a) above), Executive Order No. 9250 of October 3, 1942, Executive Order No. 9328 of April 8, 1943 (3 CFR Cum. Supp.), the general regulations, the regulations in this part, and any other orders, rulings, and regulations promulgated under said act.

Page 2311

(g) The term "agricultural labor" means persons who are employed in farming in any of its branches, including among other things the cultivation and tillage of the soil, dairying, the production, cultivation and harvesting of agricultural or horticultural commodities, and the raising of livestock, bees, or poultry; Provided, however, That the term "agricultural labor" shall not include any person whose salary payments exclusive of bonuses and additional compensation, and without regard to the contemplated adjustment, are at a rate computed on an annual basis which exceeds $5,000.00 per annum.

(h) The term "wages" or "wage payments" means all forms of direct or indirect compensation which is computed on an hourly or daily basis, a piece work basis, or other comparable basis, for personal services of an employee irrespective of when rendered, including bonuses, additional compensation, gifts, commissions, loans, fees, and any other remuneration in any form or medium whatsoever (but excluding insurance and pension benefits in a reasonable amount

(i) The term "salary" or "salary payments" means all forms of direct or indirect compensation which is paid on a weekly, monthly, annual, or other comparable basis, except a wage basis, for personal services of an employee irrespective of when rendered, including bonuses, additional compensation, gifts, loans, commissions, fees, and any other remuneration in any form or medium whatsoever (excluding insurance and pension benefits in a reasonable amount).

(j) The term "salary rate" means the rate or other basis at which the salary for any particular work or service is paid, either under the terms of a contract or agreement, or in conformity with an established custom or usage. (As issued Jan. 17, 1944.)

(k) The terms "approval of the Administrator" and "determination by the Administrator" shall include approval or determination by an agent or agents of the Administrator, duly authorized to perform such acts.

(1) The term "producer" means the person who is in charge of the farming operations on a farm.

§ 1100.2 Delegation. The administration of the program for stabilization of salaries and wages of agricultural labor

established by the general regulations, the regulations in this part, and other regulations promulgated by the Administrator, and the powers conferred upon the Administrator, with respect to such program, are hereby delegated to the Director of Labor, War Food Administration, who is hereby authorized to redelegate any such powers to employees of the War Food Administration. The Director shall be assisted in the administration of the program for the stabilization of salaries and wages of agricultural labor by such employees of the War Food Administration as he may designate, and such designated employees are hereby authorized to assist in the administration of such program.

§ 1100.3 Jurisdiction. Under the general regulations, the Administrator has the authority to determine whether salary or wage payments to agricultural labor are made in contravention of the act. Such authority does not include determinations with respect to salaries over $5,000.00 per annum. Thus, where salary payments are at a rate computed on an annual basis of more than $5,000.00 per annum, jurisdiction over such salaries is with the Commissioner of Internal Revenue. However, increases in bonuses or other forms of additional compensation, where the salary payments are at a rate computed on an annual basis of $5,000 or less, and increases in such salary payments which have the effect of raising them from below $5,000 per annum to more than $5,000 per annum, are within the jurisdiction of the Administrator.

Nothing contained in the regulations in this part shall be construed to affect any jurisdiction which the National War Labor Board may have by virtue of the War Labor Disputes Act (Pub. No. 89, 78th Cong.) and Executive Order No. 9017 (3 CFR Cum. Supp.) as extended by section 1, Title III of Executive Order No. 9250 (3 CFR Cum, Supp.). However, no person, including any Federal, State, or other governmental agency, or any officer thereof, shall have authority to overrule, amend, change, or modify, directly or indirectly, any specific wage ceiling regulation issued by the Administrator pursuant to § 4001.7 of Title 32, and as described in § 1100.7.

§ 1100.4 Wage boards. From time to time the Director may establish wage boards for the various States. Such boards shall be known as State WFA

Wage Boards. Such boards as have heretofore been established shall continue to function under the regulations in this part and the specific wage ceiling regulations described in § 1100.7. The personnel of such boards shall be appointed by the Director, and shall be persons whom the Director determines to be qualified to perform the functions of the board. The Director, in his discretion, is authorized to appoint alternates, to fill vacancies, and to remove and replace members of such boards. Such boards are hereby authorized to hold public hearings in order to recommend to the Administrator areas, crops, classes of employers, or otherwise, for which wage rates should be established as authorized in § 4001.7 of Title 32. Such boards shall have the authority to hold hearings in order to determine whether there have been violations of the regulations in this part or of specific wage ceiling regulations issued by the Administrator. Such boards may, in the discretion of the Director, be given authority to pass upon applications for increases or decreases in wages or salaries of agricultural labor in their States in accordance with the provisions of these regulations. Such boards may exercise such further functions as the Administrator or the Director may prescribe. Alternate members of a wage board may, when acting, perform all the functions of the regular members of the board.

NOTE: Delegations of authority have been granted to State Wage Boards, during the period covered by this Supplement as follows: To California, June 1, 1944, 9 F.R. 6050; to Washington, Aug. 21, 1944, 9 F.R. 10290; to Oregon, Dec. 23, 1944, 9 F.R. 15029; and to Idaho, Dec. 23, 1944, 9 F.R. 15029.

§ 1100.5 Interpretation of the term "agricultural labor". The meaning of the term "agricultural labor" as used in the general regulations and the regulations in this part is not free from difficulty in its application to specific cases. While the definition in the general regulations and the regulations in this part will enable those affected to determine their status in the vast majority of cases, there are always border line cases which may leave affected persons in doubt. The War Food Administrator is authorized by § 4001.1 (1) of Title 32 to issue such interpretations of the definition of "agricultural labor" as he finds necessary. It is the purpose of this interpretation to clarify such border line cases

insofar as experience to date will permit. The situations covered below will constitute or will not constitute agricultural labor as the case may be, for the purpose of the regulations in this part. However, the Administrator may supplement this interpretation from time to time, as more specific cases are brought to his attention, and reserves the right to determine in specific cases whether employees are employed in agricultural labor.

Employees engaged in the following described operations are agricultural labor for the purpose of the general regulations and the regulations in this part, unless otherwise herein specifically stated to the contrary:

(a) Cultivation and tillage of the soil, Preparation of a suitable seedbed; elimination of competing weed growth, and improvement of physical condition of the soil. Includes services performed in connection with the operation or maintenance of ditches, canals, reservoirs, or waterways used exclusively for supplying and storing water for farm purposes.

(b) Dairying. Milking of COWS or goats, putting the milk into tins, cooling it, and storing it on the farm. If the milk is obtained from the employer's cows or goats, his employees engaged in operations such as separating the cream from the milk, bottling such cream or milk or making butter and cheese out of such milk and cream, are agricultural labor.

(c) Production, cultivation, growing, harvesting of agricultural or horticultural commodities. Includes all customary operations in connection with the raising of any agricultural or horticultural commodity, and all operations customarily performed in connection with the removal of such commodities from the place where they are grown. See also paragraph (g) (1).

Agricultural or horticultural commodities include grains, forage crops, fruits, vegetables, nuts, sugar crops, fiber crops, tobacco, nursery products, and eggs.

Employees engaged in growing or harvesting agricultural commodities are agricultural labor, even though the commodities are raised in a greenhouse, nursery, enclosed shed, or hotbed.

(d) Raising of livestock. Includes the breeding, feeding, and general care of