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Investigation Findings

In the 45,729 investigations of nonfarm establishments made this year, $28,033,314 in back wages was found due to 186,997 employees. Of this amount, $8,663,703 was due 62,253 employees under the minimum wage provisions and $19,369,611 was due 155,746 employees under the overtime provisions. Some employees were due amounts under both the minimum wage and overtime pay provisions. (See appendix tables A and B.)

Underpayments

There was a general increase in the disclosure of underpayments in all sections of the country. The total revealed to be due under the minimum wage provisions, $8,663,703, was substantially above the previous year's total of $6,937,265. (See chart 2.) Likewise, the overtime underpayments disclosed this year, amounting to $19,369,611, were substantially in excess of the $15,465,851 disclosed in fiscal 1959. (See chart 3.)

Emphasis on the disclosure of more serious violations, increased complaint activity, and improved scheduling away from metropolitan areas were largely responsible for the increase.

Chart 2. Amount of minimum wage underpayments disclosed in investigations, fiscal years 1951-1960

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Chart 3. Amount of overtime underpayments disclosed in investigations, fiscal years 1951-1960

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Back-Wage Payments

Payment to about 119,300 employees of approximately $14 million in back wages was supervised by the Divisions, an increase of about $1 million over last year. Substantial increases have been recorded each year since the minimum wage was increased to $1 an hour in March 1956.

The Administrator is authorized to supervise the payment of back wages found due after investigation under the Fair Labor Standards Act. In addition, section 16(c) of the act authorizes the Secretary of Labor to bring suit for back pay on the written request of an employee, if no unsettled issues of law are involved. Under section 16(b), an employee may bring an independent action through an attorney of his choice to recover the amount due plus an equal amount as liquidated damages; and the court may award costs and an attorney's fee. However, the employee may not bring suit if he has been paid back wages under supervision of the Administrator, or if the Secretary of Labor sued for him. Experience indicates employees rarely utilize their right to sue an employer for back wages.

Under the Public Contracts Act, the Secretary is authorized to determine in administrative proceedings the amount due for failure to pay the required minimum wage and overtime compensation. Amounts due are owed the Government, and the Secretary distributes them to the underpaid employees.

The services of the Divisions in supervising the payment of back wages are available, and the fact that payment under the Divisions' supervision will protect the employer against the possible assessment of damages in the event of section 16(b) suit by employees is made clear.

In all suitable cases in which voluntary agreement for payment of back wages is not obtained, it is the policy of the Divisions to advise employees of their rights under sections 16(b) and 16(c) of the act.

The results achieved this year with respect to the recovery of back wages through voluntary payment on the part of employers and through the Department's legal actions, discussed below, stemmed from a vigorous recovery policy utilizing fully the limited statutory authority.

Legal Actions

A total of 1,365 civil and criminal actions were filed under the Fair Labor Standards Act and the Public Contracts Act, including 132 criminal actions, 332 actions under section 16(c) of the Fair Labor Standards Act, and 901 other civil actions, including injunctions. In addition, 52 administrative proceedings were instituted under the Public Contracts Act.

A total of 1,261 civil and criminal actions were completed under these acts, including 120 criminal actions, 257 section 16(c) actions, and 884 other civil actions. In addition, 50 administrative proceedings were completed under the Public Contracts Act.

Fines totaling $150,120 were imposed by the courts in criminal cases and $6,525 in contempt proceedings, of which $4,420 was in the nature of compensatory fines.

Of particular interest among important court decisions during the year was one decided in January when, in the case of Mitchell v. Robert De Mario Jewelry, Inc., the Supreme Court handed down a decision of significance to the enforcement activities of the Divisions. This case arose as a result of action taken by the Secretary of Labor under a provision of the Fair Labor Standards Act which protects employees against discrimination or discharge if they file a complaint or initiate a proceeding under the act. In this case, the Supreme Court held that lower courts had jurisdiction to award damages for money losses caused by discrimination or discharge. It is believed this action by the Court will provide a strong deterrent against unlawful discharge of employees who seek the advice and services of the Divisions.

The Secretary of Labor for the first time sought and obtained injunctions against employers in the Canal Zone to restrain violations of the Fair Labor Standards Act.2

Child Labor Violations

Investigators found 9,899 minors employed contrary to the child labor provisions of the Fair Labor Standards Act. Of this total, 5,429 were working in nonagricultural establishments and 4,470 on farms during school hours. (See appendix tables C and D.)

This Federal law sets a 16-year minimum age for general employment and an 18-year minimum for occupations which the Secretary of Labor has found and declared hazardous. Provision is made for the employment of minors 14 and 15 years of age outside school hours in a limited number of occupations under regulated hours and conditions. Among exemptions from the child labor standards is one which applies to minors employed in agriculture outside school hours for the school district where they are living while so employed. During school hours the minimum age for farm work is 16 years.

Of the 5,429 minors found working illegally in nonagricultural establishments, 2,457, or 45 percent, were under 16 years of age, and 2,972, or 55 percent, were 16 or 17 years of age, employed in hazardous occupations. (See appendix table E.) The industries in which minors were found illegally employed are shown in appendix table F. Of the 4,470 minors under 16 years found working on farms during school hours, 3,270, or 73 percent, were under 14, and 1,196, or 27 percent, were 14 and 15 years of age.

The Public Contracts Act prohibits the employment of boys under 16 or girls under 18 years of age on contracts let by the Federal Government for materials, supplies, articles, or equipment in amounts exceeding $10,000. A total of 61 minors were found employed contrary to this act.

Safety and Health Inspections

During the fiscal year, 2,651 safety and health inspections were made in industrial establishments performing on Government contracts under the Public Con

'Section 16(d) of the Fair Labor Standards Act provides that no employer shall be subject to liability or punishment under the act with respect to work performed in the Canal Zone prior to November 29, 1957.

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