to the Secretary for decision concerning the Federal requirements pertaining to reduced tax rates computed for employers under State law, use of funds granted to the States to meet the cost of administering their employment security laws, and the use of excess Federal tax collections distributed to the States. Through the Manpower and Employment Service Branch, legal advice is rendered to the Bureau of Employment Security and to other officials of the Department on matters involving the operation of the Federal-State employment service. Under the Wagner-Peyser Act, the Department grants funds to States for the administration of the State public employment offices. A major development in this area was the adoption of regulations prescribing certain referral standards for the States in recruiting agricultural labor from other States. The question of the Department's authority to promulgate these standards was submitted to the Attorney General, who rendered an opinion in favor of the Department. After a public hearing, the regulations were promulgated. A major aspect of the legal services which this Division performs is in connection with the Mexican migratory farm labor program. During the fiscal year, assistance was rendered in the conduct of negotiations with officials of the Mexican Government to improve the Migrant Labor Agreement of 1951, as amended, as well as to provide for its extension beyond the present expiration date. During the fiscal year, $117,723 in back wages was recovered for the Mexican workers. In addition, approximately $60,000 has been paid out under the Government's guarantee to the Mexican workers. Approximately $27,000 of this amount was recovered through litigation. Of the balance, $7,000 has been determined to be uncollectible and $27,000 is in various stages of litigation. The Secretary's designee, an attorney in this Branch, and the Minister-Counselor of the Mexican Embassy constituted an appellate tribunal which rendered 41 decisions in appeals taken by employers and Mexican workers from determinations made with respect to their obligations under the Migrant Labor Agreement and the Standard Work Contract. The Department adopted a wage policy giving effect to section 503 of title V of the Agricultural Act of 1949. This policy prohibits employment of Mexican national workers where their employment in this country would adversely affect wages and working conditions of domestic agricultural workers similarly employed. As a part of the Department's legislative program, a proposed bill, now pending in Congress, was prepared in the Division. It would require fee-charging crew leaders of migrant agricultural workers to obtain a certificate of registration from the Department as a condition to operating as a crew leader. Existence of a criminal record, misrepresentation, or failure to deal honestly with members of their crews would afford grounds for refusal or withdrawal of a certificate. The defense manpower and emergency mobilization planning of the Department also required the furnishing of legal services by this Division. During the fiscal year, the Division reviewed all phases of the Department's participation in the National Plan, the Annexes to the National Plan, and the Department's participation in the annual Operation Alert. This area of responsibility includes allocation of civilian manpower, wage and salary stabilization, settlement of labor disputes, programs for income maintenance, reemployment rights, training, and compensation for injuries and death. Wage Determinations Prevailing wage rates (the minimum rates permitted to be paid on Federal and certain federally assisted construction contracts) are predetermined by the Office of the Solicitor through the Wage Determinations Branch of this Division. These wage determinations reflect the wages found to be prevailing in the city, town, village, or other civil subdivision of the State in which the work is to be performed. For the third consecutive year, this Branch reached an alltime high in the number of wage determinations. During the fiscal year, 37,175 wage determinations were issued—an increase of 3,892 over the number issued during fiscal 1958. Approximately 4,500 of these determinations were issued for initial construction of the interstate system under the Federal-Aid Highway Act of 1956. A total of 30,049 pieces of correspondence were prepared in connection with wage determination matters. The Branch of Coordination and Enforcement administers the functions placed in the Secretary by Reorganization Plan No. 14 of 1950. The purpose of the plan is to achieve coordination of administration and consistency in the enforcement of the labor standards provisions of the statutes covered by it. During fiscal 1959, this Branch opened a record number of 1,324 enforcement cases. This is a substantial increase over the 906 cases opened during fiscal 1958. A total of 1,213 cases were processed to completion during fiscal 1959. In cases involving flagrant violations, action is taken to have the Comptroller General place the contractors involved on the list of persons and firms ineligible to receive Government contracts for 3 years. Ineligibility sanctions were imposed against 69 firms and individuals. As a result of this enforcement action, restitution totaling $401,204 was secured for 3,376 laborers and mechanics. This sum is higher than that secured in any previous fiscal year. In order to promote consistency in the enforcement of the various statutes under Reorganization Plan No. 14, the Branch continued its series of "all agency" memoranda with respect to coverage problems and related matters. In addition, the Branch issued a large number of interpretations and opinions to contractors and employees advising them of their rights and responsibilities under these statutes. During fiscal 1959, prevailing minimum wage and overtime provisions were inserted in the Federal Civil Defense Act. This amendment of the statute materially increased the wage determination and enforcement workload of the Division. Legislation, General Legal Services, and Hearings The three branches which comprise this Division are the Branch of Legislation and General Legal Services, the Hearing Examiners Branch, and the Branch of Special Services. The work of the Department relating to legislative matters is performed by the Branch of Legislation and General Legal Services. The Branch provides the Secretary with assistance in the development of the Department's views on pending legislation and prepares draft bills and reports to congressional committees embodying these views. A total of 442 legislative reports were prepared by the Branch during the 1959 fiscal year. Included among the draft bills prepared during the year and submitted to the Congress as part of the Department's legislative program were proposals to— 1. Safeguard workers' funds in union treasuries against misuse; protect the rights and freedoms of individual union members; advance true and responsible collective bargaining; and protect the public and innocent third parties from unfair and coercive secondary boycott practices and blackmail picketing in representation situations. 2. Extend the minimum wage coverage of the Fair Labor Standards Act to all employees of enterprises doing business in commerce to a substantial extent, and narrow certain exemptions by excluding therefrom employees in enterprises in which 100 or more workers are employed. 3. Revise and bring up to date the Eight-Hour Laws. 4. Extend coverage of the unemployment insurance system to employees of firms having one or more employees, to presently noncovered employees of certain Federal instrumentalities, nonprofit organizations and certain other groups, and to workers in Puerto Rico. 5. Correct the deficiencies in the Welfare and Pension Plans Disclosure Act which the President pointed out when he signed the measure a year ago. Legal analyses and opinions, explanatory statements, and comparative charts dealing with bills under consideration in Congress are furnished at the request of congressional committees, and to assist officials of the Department in testifying before those committees. More than 2,700 statements were prepared by this Branch on request during fiscal 1959—an increase of more than 1,000 over the previous year. This Branch also performs general legal services for the Office of the Secretary and the other offices and bureaus of the Department. In rendering such services during the year, the Branch prepared 528 analyses, memoranda, and orders. Seven hundred letters were prepared for the Secretary's signature. There were 1,934 letters drafted for the Solicitor's signature, representing an increase of 413 over the previous year. The Branch of Legislation and General Legal Services also furnished a variety of legal services in connection with the interests and activities of the Depart ment in international labor affairs. For example, it assisted in the preparation of the United States position paper for the guidance of the Government delegation in the discussion of the development of an international instrument on the subject of collaboration between employers, workers, and government at the industrial and national levels during the 43d session of the International Labor Conference in June 1959. The hearing examiners of the Hearing Examiners Branch conducted 61 hearings under the Walsh-Healey Public Contracts Act and rendered 43 decisions involving violations of the health and safety standards, minimum wage and overtime requirements, or child labor provisions. In addition, four hearings were held in proceedings involving the determination of the prevailing minimum wages in particular industries pursuant to the provisions of the Walsh-Healey Act. The Branch of Special Services of this Division provides necessary legal services to the Employees' Compensation Appeals Board in connection with the adjudication of compensation cases on appeal to the Board. In connection with the adjudication of such cases, the Branch furnishes legal advice to the Board, writes the opinions expressing the Board's decisions, and performs special research assignments requested by the Board or by the Solicitor. During the fiscal year, 219 decisions were written, with the assistance of this Branch. |