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Los Angeles, February 24, 1950 085-01 Mr. A. E. Stoddard: Recommendation for increases in salaries and rates of pay of various LVLfcW employes at Las Vegas. Estimated monthly increase in payroll, #53.65. Recentiy, after reviewing the LVL&WCo. Water operations at Las Vegas, Mr. Lawrence G. Pace, Investigator for the Wage and Hour Division of the U. S. Department of Labor, advised that our Superintendent and Assistant to General Manager have been performing non-exempt wort in excess of the prescribed limits, and therefore are subject to the Act, and should be compensated at overtime rates for all work performed in excess of 40 hours per week. These employes, who have heretofore been paid for all services rendered, have been considered administrative employes and, therefore, not subject to the Act. Superintendent, in addition to his daytime duties, is frequently called upon to supervise emergency repairs at night and on Saturdays, Sundays and holidays. To meet the re­quirements of the Fair Labor Standards Act, I recommend salary of this position be increased to #433.33 per month, which inorease in the opinion of our Law Dept, will exempt the Super­intendent from the overtime provisions of the Act. As regards the Assistant to General Manager; In the opinion of our Law Dept, we cannot successfully resist the con­tention of Mr. Paoe that this employe Is subjeot to the Act, and, as he is only called in case of emergency to perform services in excess of the regular 40-hour week, I recommend his present salary of #329.68 be preserved for the 40-hour week. Attaohed are Forms 2120 making change in the salaries of Superintendent and Assistant to General Manager, retroactive to Jjanuary 25, 1950, the effective date of the amended Act. Wm. Reinhardt