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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Section 7

Citation
Section 7
Parent Document
Marvin v. Hodgson, 33 Cal. 2d 439 (1949)
Jurisdiction
California (state)
Effective Date
1949-02-01

Full Text

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The question remains as to whether the asserted liability springs from the Stabilization Act of 1942 and the executive order hereinabove mentioned. It is to be noted at the outset that the purpose of the Stabilization Act is disclosed in section 967 (50 U.S.C.A.) as follows: “In order to aid in the effective prosecution of the war, the President is authorized ... to issue a general order stabilizing prices, wages, and salaries, affecting the cost of living; and, except as otherwise provided in this Act, such stabilization shall so far as practicable be on the basis of the levels which existed on September 15, 1942. [It does not clearly appear from the record before us whether the defendant was in business on or prior to September 15, 1942, but it seems to be assumed by the parties that they were subject to the Stabilization Act and the executive orders issued thereunder insofar as they may be applicable.] The President may, except as otherwise provided in this Act, thereafter [subsequent to November 1, 1942] provide for making adjustments with respect to prices, wages, and salaries, to the extent that he finds necessary to aid in the effective prosecution of the war or to correct gross inequities.” Furthermore, it is to be noted that title II of Executive Order No. 9250 (upon section 1 of which plaintiffs rely) provides (in section 2) that “The National War. Labor Board shall not approve any increase in the wage rates prevailing on September 15, 1942, unless such increase is necessary to correct maladjustments *447or inequalities, to eliminate substandards of living, to correct gross inequities, or to aid in the effective prosecution of the war . . . [In section 3.] The National War Labor Board shall not approve a decrease in the wages for any particular work [italics added] below the highest wages paid therefor between January 1, 1942, and September 15, 1942, unless to correct gross inequities and to aid in the effective prosecution of the war. [In section 4.] The National War Labor Board shall, by general regulation, make such exemptions from the provisions of this title in the case of small total wage increases as it deems necessary for the effective administration of this Order . . . [Title VI, § 1.] Nothing in this Order shall be construed as affecting the present operation of the Fair Labor Standards Act.” (Italics added.) Also, Executive Order No. 9017 by which the National War Labor Board was created prior to congressional authority therefor (see Pearson Candy Co. v. Waits (1946), supra, 27 Cal.2d 615, 617), specifies in section 7 (50 U.S.C.A. App., p. 583) that “Nothing herein shall be construed as superseding or in conflict with the provisions of . . . the Fair Labor Standards Act ...” And it is provided in section 4 of the Stabilization Act of 1942, as amended in 1943 and 1944, that “No action shall be taken under authority of this Act with respect to wages or salaries, (1) which is inconsistent with the provisions of the Fair Labor Standards Act of 1938, as amended . . .” (50 U.S.C.A. App. § 964.) From the foregoing quotations it becomes apparent that the purpose of the Stabilization Act and of the executive orders thereunder was to stabilize wages, not to force increases or decreases, and not to affect in any way “the present operation of the Fair Labor Standards Act.”