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1974/10/29 HR13342 Farm Labor Contractor Registration Act Amendments of 1974 (vetoed) (1)
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1974/10/29 HR13342 Farm Labor Contractor Registration Act Amendments of 1974 (vetoed) (1)
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The original documents are located in Box 13, folder "1974/10/29 HR13342 Farm Labor
Contractor Registration Act Amendments of 1974 (vetoed) (1)" of the White House
Records Office: Legislation Case Files at the Gerald R. Ford Presidential Library.
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The copyright law of the United States (Title 17, United States Code) governs the making of
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States of America his copyrights in all of his unpublished writings in National Archives collections.
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Exact duplicates within this folder were not digitized.
Digitized from Box 13 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
THE WHITE HOUSE
ACTION
WASHINGTON
Last Day - October 29
October 26, 1974
MEMORANDUM FOR:
THE PRESIDENT
FROM:
KEN CODE
SUBJECT:
Enrolled Bill H.R. 13342
Farm Labor Contractor Registration
Act Amendments of 1974
BACKGROUND
This bill would amend the Farm Labor Contractor Registration
Act of 1963 by extending coverage, strengthening enforcement
mechanisms, and establishing a Federal civil remedy for persons
aggrieved by violation of the act. In addition, it contains a
rider which would make claims under Labor's "black lung" pro-
gram subject to the Administrative Procedure Act and upgrades
all Labor Department Hearing Examiner positions to Administrative
Law Judges at the GS 16 level.
PROVISIONS
The enrolled bill increases the coverage of the 1963 Act by
removing present exemptions for crew leaders operating within
one state or recruiting less than ten workers. It also increases
the Secretary of Labor's responsibility and power of enforcement
of the regulations and strengthens the penalty provisions of the
Act. The Secretary of Labor is also granted injunction powers
where violations have occurred.
Registration requirements of crew leaders are strengthened and
requirements for increased insurance on vehicles used in trans-
porting farm workers are mandated.
The personnel rider to H.R. 13342 requires that claims under the
"black lung" program will be adjudicated under the provisions of
the Administrative Procedure Act and that Labor Department
employees hearing these cases be upgraded to GS 16.
- 2 -
DISCUSSION
The Farm Labor Contractor Registration Act of 1963 sought to
curtail the many abuses against migrant and seasonal farm
laborers by placing certain registration requirements and
controls upon them. Although provision was made for penalties
to be imposed for violations, enforcement has been extremely
difficult because of inadequate statutory authority to deter
and correct any abuses. These amendments would greatly improve
our efforts to protect the rights of our seasonal migrant
workers and the farmers.
However, the rider which was added in the Senate Committee without
opportunity for comment by the Executive Branch generates the
serious objection to the overall bill despite no opposition to
the main provisions and purpose of the bill affecting farm laborers.
Black lung claims are in fact already adjudicated by the Department
of Labor under the formal provisions of the Administrative Pro-
cedure Act and the rider is solely intended to circumvent the
Civil Service Commission and upgrade the hearing examiners and
make them the same grade regardless of their specific responsi-
bilities and puts people into those positions regardless of their
qualifications.
ADDITIONAL COSTS
H.R. 13342 would require an estimated additional $405,000 for
the current fiscal year, rising to $515,000 in FY 1976.
RECOMMENDATIONS
The Labor Department (Brennan), the Agriculture Department
(Campbell), recommend approval.
OMB (Ash), Civil Service Commission (Hampton), Bill Timmons
and Domestic Council all recommend disapproval.
Commerce, Justice and the Interstate Commerce Commission either
defer to Labor or have no objection, and the Department of
Transportation specifically supports those provisions impacting
upon registration and insurance for vehicles.
- 3 -
I recommend disapproval of H.R. 13342. A veto message at Tab A
strongly supports the farm labor provisions in the bill and
emphasizés the inappropriateness and inadvisibility of the
personnel rider. The message also requests the Congress to
return the farm labor amendments to you without delay.
DECISION
Sign
Veto (Veto message at Tab A)
VETOED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
10/29/74)
WASHINGTON, D.C. 20503
OCT 25 1974
?
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 13342 - Farm Labor Contractor
Registration Act Amendments of 1974
Sponsor - Rep. Ford (D) Michigan and 12 others
Last Day for Action
FORD is LIBRARY 079838
October 29, 1974 - Tuesday
Purpose
Amends the Farm Labor Contractor Registration Act of 1963
by extending coverage, strengthening enforcement mechanisms,
and establishing a Federal civil remedy for persons
aggrieved by violations of the Act; contains a rider which
would make claims under Labor's "black lung" program
subject to the Administrative Procedure Act and upgrade
all Labor Department hearing examiner positions to
Administrative Law Judges at the GS-16 level.
Agency Recommendations
Office of Management and Budget
Disapproval (Veto
message attached)
Civil Service Commission
Disapproval (Veto
message attached)
Department of Labor
Approval (Signing
statement attached)
Department of Agriculture
Approval
Department of Commerce
Defers to Labor
Department of Justice
Defers to Labor
Administrative Conference of the
United States
No objection to Sec. 13
Interstate Commerce Commission
No objection
Department of Transportation
Supports Sec. 5 and 6
Discussion
The Labor Department, in testimony before the House and
Senate Committees, expressed support for most of the
GERAI ORD LIBRARY
2
amendments to the Farm Labor Contractor Registration Act
embodied in H.R. 13342. The rider, which is highly
objectionable, was added in the Senate Committee, without
opportunity for formal comment by the Executive Branch.
The Farm Labor Contractor Registration Act of 1963 sought
to curb widespread abuses against migrant and seasonal
farm laborers and the farmers who employ them by requiring
that all crew leaders who contract with farmers to provide
laborers register with the Secretary of Labor. Registra-
tion can be denied if an applicant has been convicted of
certain crimes, fails to perform contracts with farm
operators, or gives false or misleading information to
migrant workers concerning the terms of farm employment.
The Act requires all crew leaders to inform each worker
at the time of recruitment of specified terms of employment,
and post these terms at the worksite. If the crew leader
is the paymaster, he is required to keep payroll records
and follow tax withholding laws. Violation of any of the
requirements can result in the revocation of the certificate
or in criminal prosecution, with a fine of up to $500.
The Act is enforced by compliance officers in the Labor
Department's Wage-Hour Division, who check for a certif-
icate of registration or make a detailed investigation
when a complaint is received. Violations of the Act have
been widespread. Only 2,000 of an estimated 5,000 crew
leaders have registered. Enforcement is difficult because
of inadequate statutory authority to deter and correct
any abuses.
Provisions of the enrolled bill
H.R. 13342 would amend the Act in the following major
respects:
(1) Coverage--Removes the present exemptions for crew
leaders operating within one State or recruiting less than
10 workers.
(2) Enforcement--Imposes affirmative duties upon the
Secretary of Labor to monitor and investigate activities
of contractors, and provides him with subpoena powers.
(3) Penalties--Strengthens penalty provisions of the
Act by (a) adding a possible one-year prison sentence to
the present $500 fine; (b) adding a new $10,000 fine,
3
imprisonment not to exceed three years, or both, for sub-
sequent violations of the Act, and for contractors who
knowingly hire illegal aliens; (c) empowering the Secretary
to assess a civil penalty for violation of regulations
under the Act, subject to judicial review.
(4) Civil relief--Empowers the Secretary of Labor
to seek injunctive relief in any U.S. District Court when
he determines that a violation of the Act has occurred;
allows persons aggrieved by violations of the Act to bring
civil suits in U.S. District Courts.
(5) Registration requirements--Adds requirements
that crew leaders must (1) post a minimum $5,000 bond;
(2) provide proof that vehicles and housing under the
ownership or control of the applicant meet Federal and
State health and safety standards.
(6) Insurance--Increases required insurance on
vehicles transporting farm workers to that required for
other interstate passenger vehicles by the Interstate
Commerce Commission.
(7) Other Farm Labor Contractor Registration Act
Amendments--The enrolled bill would impose new obligations
on registered farm labor contractors, such as more detailed
disclosure of employment information--including the existence
of a strike--in a language in which the worker is fluent;
increased reporting requirements; and the prohibition of
retaliation against any migrant worker for the exercise
of a right secured under the Act. A grower who uses
workers supplied by a crew leader would be required to
maintain payroll records, and assure that the crew leader
has a valid registration certificate.
Personnel rider--H.R. 13342 would require that the pro-
visions of the Administrative Procedure Act (APA) be followed
in the adjudication of claims under the "Black Lung" program
and require Labor Department employees who hear these and
other claims to be GS-16's. More specifically, Section 17
of H.R. 13342 would:
(1) Require that any hearing held under the authority
of the Longshore and Harbor Workers Compensation Act--
including amendments or extensions thereto, such as black
lung benefits--be conducted by Administrative Law Judges
in accordance with the APA, rather than the informal
procedures now used. The Senate Committee report on
H.R. 13342 states that this amendment will bring proceedings
4
of the Black Lung Benefits Act of 1972 into conformance
with similar proceedings under the Longshoremen's and
Harbor Workers' Compensation Act, "which was the original
intention of the Congress."
(2) Provide that the hearing officers who are presently
employed by Labor to adjudicate claims under the current
informal procedures and who are not now subject to
competitive hiring, would be deemed to be qualified
Administrative Law Judges (ALJ's) without having to be
subject to the regular competitive, merit procedures of
the civil service.
(3) Make all ALJ positions in the Department of Labor
GS-16's, as well as the members of the Benefits Review Board
established by the Longshore Amendments of 1972. Present
ALJ's and hearing examiners who cannot qualify as GS-16's
could remain in these positions at their present grades.
Moreover, the Department of Labor could in the future add
to its supergrade positions the number it believes necessary
for any APA hearings.
Cost--Added costs resulting from approval of H.R. 13342
would be associated with increased enforcement and
administration of the Act. The Labor Department estimates
these to be $405,000 for the current fiscal year, rising
to $515,000 in fiscal year 1976.
Agency recommendations
Labor, which endorsed the goals of this legislation in
congressional hearings, recommends approval, citing the
many areas in which the enrolled bill would strengthen
the Act.
Agriculture also recommends approval, stating:
"This legislation may require some short-run
adjustments in traditional labor management
practices of certain labor users (farmers,
processors, etc.) But, over time the benefits
from these Amendments should far outweigh any
disadvantages and bring about a greater degree
of rationality in agricultural labor management
relations. This should ultimately increase
production efficiency."
5
Justice, Commerce, Transportation, the Interstate Commerce
Commission, and the Administrative Conference of the United
States--either defer to Labor or indicate no objection to
enactment.
Civil Service Commission recommends veto on the basis of
strong objection to the personnel rider in Section 17
of the enrolled bill. CSC points out that this rider
to the bill--which has nothing to do with farm workers--
would formalize claims proceedings under an unrelated
program which should be conducted in an informal, non-
legalistic setting so as not to inhibit the claimant.
The result of these changes, in CSC's view, would be to
unduly delay decisions to the detriment of claimants
who are entitled to speedy and fair resolution of their
cases. Moreover, CSC believes that the feature which would
classify and pay all of Labor's Administrative Law Judges
at the GS-16 level, would be disruptive to the principle
of equal pay for equal work by overclassifying these
positions relative to hundreds of similar positions in
other agencies. CSC also takes strong exception to that
part of Section 17 of H.R. 13342 which would authorize
Labor any additional supergrade positions (GS-16, 17 and 18)
that they would deem necessary for any APA hearings.
We fully share the concern of CSC with regard to the per-
sonnel rider in the enrolled bill in principle and in
terms of precedents it will establish for hundreds of
similar positions in the Social Security Administration
and other agencies. We believe the provision is
sufficiently objectionable that the bill should be
disapproved despite the merits of the provisions amending
the Farm Labor Contractor Registration Act.
Accordingly, we have drafted a veto message which indicates
that you would approve a "clean" bill directed only toward
strengthening that Act.
FORD is LIBRARY DERALD
Director
Enclosures
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
Harren 10' 10:10 q.m
WASHINGTON, D.C. 20503
OCT 25 1974
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 13342 - Farm Labor Contractor
Registration Act Amendments of 1974
Sponsor - Rep. Ford (D) Michigan and 12 others
Last Day for Action
October 29, 1974 - Tuesday
Purpose
Amends the Farm Labor Contractor Registration Act of 1963
by extending coverage, strengthening enforcement mechanisms,
and establishing a Federal civil remedy for persons
aggrieved by violations of the Act; contains a rider which
would make claims under Labor's "black lung" program
subject to the Administrative Procedure Act and upgrade
all Labor Department hearing examiner positions to
Administrative Law Judges at the GS-16 level.
Agency Recommendations
Office of Management and Budget
Disapproval (Veto
message attached)
Civil Service Commission
Disapproval (Veto
message attached)
Department of Labor
Approval (Signing
statement attached)
Department of Agriculture
Approval
Department of Commerce
Defers to Labor
Department of Justice
Defers to Labor
Administrative Conference of the
United States
No objection to Sec. 13
Interstate Commerce Commission
No objection
Department of Transportation
Supports Sec. 5 and 6
Discussion
The Labor Department, in testimony before the House and
Senate Committees, expressed support for most of the
FORD i LIBRARY GERALD
We assume that the form of
this message including the
title and the first paragraph,
will be revised to conform with
the approach taken in the veto
TO THE HOUSE OF REPRESENTATIVES
message on H.R. 11541--the
National Wildlife Refuge System,
dated October 22, 1974.
I am returning today, without my approval, H.R. 13342,
The Farm Labor Contractor Registration Act Amendments of
1974. This bill contains provisions designed to strengthen
the protections of migrant farm workers under that Act,
which I support. I cannot approve the bill, however,
because it contains an unrelated rider which creates
serious inequities and distortions in the Federal personnel
system.
In the decade since the enactment of the Farm Labor
Contractor Registration Act of 1963, it has become apparent
that the provisions of that law have not been adequate to
accomplish its purpose of protecting migrant farm workers
from abuses by farm labor contractors. For nearly a year,
the Administration has been working with the Congress to
develop legislation which would improve the Act, and there
has been give and take on all sides. I am pleased with.
this spirit of cooperation, and endorse those provisions
of H.R. 13342 which apply to migrant farm workers.
Unfortunately, the Congress has seen fit to add a
rider to this bill, which I cannot accept, totally unrelated
to the needs of migrant farm workers.
Section 17 of the bill would, among other things,
require that the formal judicial-type proceedings of the
Administrative Procedure Act be applied to claim adjudica-
tion under the Labor Department's "black lung" benefits
program. Such claimants are entitled to and should receive
fair and speedy resolution of their cases rather than be
inhibited and delayed by the formality inherent in the
Administrative Procedure Act. On several occasions I have
expressed my concern with the increasing cost of carrying
-2-
out Government procedures and regulatory requirements.
The rider to this bill is another example of how Government
regulations and procedures--rather than expediting the business
of the people--can delay resolution of issues and add to
costs.
I am also gravely disturbed by another part of Section
17 relating to the hearing officers now employed by the
Labor Department to hear and decide "black lung" claims.
These employees would by fiat be declared to be Administra-
tive Law Judges without regard to their capacity to fill
such positions. Since Administrative Law Judges hired in
the usual manner must demonstrate such capacity, this
feature would be contrary to all principles of a civil
service system based upon merit and competition among
candidates.
Finally, I cannot accept the feature of Section 17
which would legislatively classify and pay at the GS-16
level these newly designated Administrative Law Judges for
the "black lung" program, as well as those who currently
hear claims under the Longshoremen's and Harbor Workers'
Compensation Act and the members of the Benefits Review
Board established by the Longshore Amendments of 1972. Such
a provision would arbitrarily impose a grade level without
due regard for the relative complexity and difficulty of
the work involved. By over-classifying certain positions,
it would be disruptive of the principle of equal pay for
equal work. This would create inequities within the Labor
Department, and between positions of that agency and those
in a number of other agencies, including over 400 GS-15
Administrative Law Judges in the Social Security Administration.
-3-
My concern about legislating classifications and
pay of special groups of employees was the basis for my
disapproving H.R. 5094, which provided for an arbitrary
and inequitable reclassification of deputy U.S. marshalls.
In my first veto upon assuming the Presidency, I expressed
my strong concern about granting preferential pay treatment
by statute, and indicated that our policy must be to
provide equal salaries for equal work. The rider to H.R.
13342 contains deficiencies similar to those in H.R. 5094.
In summary, I cannot accept a legislative provision
which would disrupt sound principles of personnel
administration, would create serious pay inequities by
providing overly liberal salaries to employees in one agency
leading to demands for similar treatment by large numbers
of employees in other agencies, and would not effectively
serve the public interest.
I urge the Congress, upon its return next month, to
send me a bill--which I will promptly approve--without
the unacceptable personnel provision I have described, a
bill which is directed only toward strengthening the Farm
Labor Contractor Registration Act.
THE WHITE HOUSE
October , 1974
ADMINISTRATIVE CONFERENCE OF THE UNITED STATES
2120 L STREET, N.W., SUITE 500
WASHINGTON, D.C. 20037
OFFICE OF
THE CHAIRMAN
October 18, 1974
Mr. W. H. Rommel
Assistant Director
for Legislative Reference
Office of Management and Budget
Washington, D.C. 20503
Dear Mr. Rommel:
This is in response to your request for our comments on enrolled
bill H.R. 13342, the Farm Labor Contractor Registration Act Amendments
of 1974. In view of our unfamiliarity with the substantive aspects
of this legislation, we will limit our comments to sections 13 and 17
of the bill.
Section 13 would amend the Farm Labor Contractor Registration
Act of 1963 to provide authority and procedure for administrative
imposition of civil penalties. The provision is consistent with
Conference Recommendation 72-6, 1 C.F.R. 305.72-6, and closely follows
a model civil penalty statute distributed by this office. The only
question we might raise is with respect to placing judicial review in
the United States District Courts. Where judicial review of agency
action is based on the evidentiary record developed in the agency
proceeding, it is usually preferable to place review in the United
States Courts of Appeals for the reasons set forth in Polcover v.
Secretary of the Treasury, 477 F.2d 1223, 1227 (D.C. Cir. 1973).
However, review in the district court is by no means rare and may be
the better choice in situations where there are unlikely to be many
appeals beyond the first level of judicial review. At any rate we
have no objection to section 13.
While we are not sure we entirely understand the effect of section
17 of the bill, it would appear to require all administrative law judges
in the Department of Labor eventually to be compensated at at least
the GS-16 level. This provision, aside from its own merits, may have
implications for the classification of the approximately 400 admin-
istrative law judges at the Social Security Administration, who are,
we understand, nearly all GS-15's. We suggest, therefore, that you
consult the Civil Service Commission and the Department of Health,
Education and Welfare regarding the desirability of section 17.
Sincerely yours,
Richard K. Bey
Richard K. Berg
FORD is LIBRARY
Executive Secretary
OF
COMMISSION
OFFICE OF THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
UNITED
AMERICA
STATES
of
OCT 18 1974
Honorable Roy L. Ash
Director
Office of Management and Budget
Washington, D.C. 20503
Dear Mr. Ash:
You have asked for our comments on H.R. 13342, an enrolled bill
"To amend the Farm Labor Contractor Registration
Act of 1963 by extending its coverage and
effectuating its enforcement."
Of primary concern to this Department are Sections 5 and 6 of the
bill which amend Section 5 of the Act. These sections add additional
requirements for the issuance by the Secretary of Labor of a certif-
icate of registration to a farm labor contractor applicant. Section
5 of the bill requires among other things, proof that the applicant's
vehicles for the transportation of migrant workers conform to
applicable Federal and state safety standards. Vehicles' failure
to conform would be sufficient grounds for the Secretary to refuse to
issue or renew, as well as to suspend or revoke a certificate.
Section 6 of the bill increases the present insurance minimums to
require that an applicant would have to obtain insurance in the
amounts currently required by the Interstate Commerce Act and
regulations promulgated pursuant thereto, for vehicles used in
the transportation of passengers in interstate commerce. However,
the bill also provides that the Secretary of Labor would have the
discretion to issue regulations requiring insurance in lesser
amounts if he determines that the insurance coverage required
by the Interstate Commerce Commission is not available to such
applicants in the same manner and in the same amounts as it is
to other common carriers.
2
We support the requirements imposed by Sections 5 and 6 of the
enrolled bill because they will provide additional transportation
safety and insurance protection to migrant workers which was not
available before, and on this basis, recommend that the President
sign the enrolled bill.
We note that Section 2 of the bill amends Section 3 of the Act to
exclude from the definition of "farm labor contractor" any common
carrier or any full-time regular employee thereof engaged solely
in the transportation of migrant workers. We have no objection
to this exclusion since such carriers are already subject to
applicable Federal and state safety standards. As to the other
provisions in the enrolled bill, we defer to the Department of
Labor.
Sincerely,
Rod
Rodney E. Eyster
General Counsel
STATES DEPARTMENT
DEPARTMENT OF AGRICULTURE
OFFICE OF THE SECRETARY
WASHINGTON, D. C. 20250
October 21, 1974
Honorable Roy L. Ash
Director, Office of Management
and Budget
Washington, D. C. 20503
Dear Mr. Ash:
In reply to the request of your office, the following report is submitted
on the enrolled enactment H. R. 13342, "To amend the Farm Labor
Contractor Registration Act of 1963 by extending its coverage and
effectuating its enforcement. 11
This Department recommends that the President approve the bill.
The overall intent of the Amendments is to increase the role and respon-
sibility of the actual user of labor in the employment of both inter and
intrastate migrant workers. At the same time it also provides specific
measures designed to increase transportation safety and improve the
working environment of migrant workers.
The Amendments, by more stringent licensing regulations, will have
the effect of reducing the number of registered labor contractors. This
bill will cover labor contractors operating completely within one state
and removes the previous exclusion of labor contractors recruiting less
than ten workers. This should have the greatest impact in California
where much migrant labor movement is completely within state lines.
The most likely impact on these newly covered contractors will be to
induce a change in status from that of an independent labor recruiter
and manager of labor to that of a foreman in the employ of the farmer or
processor. Family crews appear to be exempt.
The potential for change in status is further strengthened by the require-
ment that payroll records be kept by the labor contractor and furnished
to the final labor user. The final user is also required to maintain these
records. These provisions involve the formalization of the intent of re-
cent court decisions that place greater employment responsibility on the
user rather than the procurer of labor. Failure to comply may make the
user as well as the procurer subject to prosecution under the Act.
Mr. Roy L. Ash
2
This legislation may require some short-run adjustments in traditional
labor management practices of certain labor users (farmers, processors,
etc. ). The greatest impact will be on employers in fruit and vegetable
production and processing. But, over time the benefits from these
Amendments should far outweigh any disadvantages and bring about a
greater degree of rationality in agricultural labor management relations.
This should ultimately increase production efficiency.
Sincerely,
J. Phil Campbell
Under Secretary
DIPARTMENT OF COMMERCE
GENERAL COUNSEL OF THE
DEPARTMENT OF COMMERCE
UNITED STATES OF AMERICA
Washington, D.C. 20230
OCT 21 1974
Honorable Roy L. Ash
Director, Office of Management
and Budget
Washington, D. C. 20503
Attention: Assistant Director for Legislative Reference
Dear Mr. Ash:
This is in reply to your request for the views of this Department
concerning H.R. 13342, an enrolled enactment
"To amend the Farm Labor Contractor Registration Act
of 1963 by extending its coverage and effectuating its
enforcement, 11
to be cited as the "Farm Labor Contractor Registration Act
Amendments of 1974".
While this Department has no objection to H.R. 13342, we would
defer to the views of the Department of Labor as to whether the
bill should be approved by the President.
Enactment of this legislation would not involve any increase in
the budgetary requirement of this Department.
Sincerely,
Karl E. Bakke
General Counsel
ASSISTANT ATTORNEY GENERAL
LEGISLATIVE AFFAIRS
Department of Justice
Washington, D.C. 20530
OCT 22 1974
Honorable Roy L. Ash
Director, Office of Management
and Budget
Washington, D.C. 20530
Dear Mr. Ash:
. In compliance with your request, I have examined a
facsimile of the enrolled bill (H.R. 13342), "To amend
the Farm Labor Contractor Registration Act of 1963 by
extending its coverage and effectuating its enforcement."
The enrolled bill amends the Farm Labor Contractor
Registration Act of 1963, as amended, 7 U.S.C. §§2041 et
seq. (the "Act"). This new legislation would extend the
coverage of the Act to intrastate, as well as interstate,
agricultural employment of migrant workers.
Effectuation of the Act would appear enhanced by the
provision of the enrolled bill for increased criminal
sanctions and the availability of civil remedies, e.g.,
temporary or permanent injunctive relief, for violations
of the Act or its regulations. Additionally, the bill
empowers the Secretary of Labor with subpoena powers to
aid in investigating compliance with the Act's requirements.
The Department of Justice defers to the Department
of Labor as to whether this bill should receive Executive
approval.
FORD LIBRARY is 07/230
W. Vincent Rakestraw
Assistant Attorney General
BECEINED
Interstate Commerce Commission
Mashington, D.C. 20423
OFFICE OF THE GENERAL COUNSEL
October 22, 1974
Mr. W. H. Rommel
Assistant Director
for Legislative Reference
Office of Management and Budget
Washington, DC 20503
Dear Mr. Rommel:
This is in response to your request for the Commission's
comments on H.R. 13342, an enrolled bill "to amend the Farm Labor
Contractor Act of 1963 by extending its coverage and effectuating its
enforcement." The legislation does not effect the functions, powers,
or duties of the Interstate Commerce Commission. The Commission's
views on the proposal were not requested by the Congress. Because of
the time constraints, this letter has not been cleared with the Commis-
sion, but I am confident that they would have no objection to Presidential
signature.
I note that there is a provision in the legislation which would
exempt from the requirements of the Farm Labor Contractor Registration
Act a common carrier engaged solely in the transporting, and not the
recruiting, soliciting, hiring, or furnishing of migrant workers. I assume
that this provision is included because such carriers are already subject to
the safety regulations of the Department of Transportation and the respec-
tive states. I believe that where only transportation services are involved,
current safety regulations imposed on common carriers afford adequate
safeguards.
If I can be of further assistance, please let me know.
Sincerely yours,
GERALD R. FORD LIBRARY
Lary Gula Reida
Larry T. Reida
Associate General Counsel
for Legislation
by Barbara S. Bannister
U.S. DEPARTMENT OF LABOR
OFFICE OF THE SECRETARY
WASHINGTON
OCT 22 1974
Honorable Roy L. Ash
Director
Office of Management and Budget
Washington, D.C. 20503
Dear Mr. Ash:
This is in response to your request for our views on
the enrolled enactment of H.R. 13342, the "Farm Labor
Contractor Registration Act Amendments of 1974."
This Department has supported legislation to improve the
Farm Labor Contractor Registration Act of 1963. On
November 9, 1973 and April 8, 1974, Assistant Secretary
DeLury testified before the House and Senate Subcommittees
involved, respectively. In both statements, he expressed
our basic support for many of the concepts embodied in
this legislation. We have also provided technical assis-
tance to the Senate Labor and Public Welfare Committee.
H.R. 13342 would strengthen the Farm Labor Contractor
Registration Act in the following five major areas:
First, the Act's coverage would be extended by deleting
the present limitation to contractors working interstate
and recruiting 10 or more workers at any one time.
Second, H.R. 13342 imposes additional requirements on
applicants for certificates of registration. Applicants
would be required to obtain increased insurance equivalent
to that required under regulations issued pursuant to the
Interstate Commerce Act, to provide greater protection
to those injured as a result of their operation of motor
vehicles. This requirement may be waived by the Secretary
of Labor. Applicants would also be required to certify
that vehicles and housing under their ownership or control
- 2 -
to be used by migrant workers satisfy all relevant State
and Federal health and safety standards. Applicants are
further required to consent to substitute service of pro-
cess on the Secretary of Labor when they are unavailable
for service.
Third, the bill imposes a number of new obligations on
registered contractors. Disclosure of information about
employment required to be given to migrant workers by the
contractor is expanded to include the existence of a
strike or other work stoppage, and the existence of various
special arrangements with merchants. The disclosure pro-
vision is also expanded to require written disclosure in
a language in which the worker is fluent. Registered con-
tractors must refrain from hiring illegal aliens. They
are also required to notify the Secretary of any change
of address and certify any new vehicles or housing acquired
to be used by migrant workers within 10 days. Further,
they must promptly pay to workers all moneys entrusted to
the contractor for the benefit of the workers, and refrain
from requiring workers to purchase goods exclusively from
any person.
Fourth, the remedies for enforcement of the Act would also
be expanded. The criminal penalties for violation of the
Act are expanded by adding a possible 1-year prison sentence
to the present $500 fine. The bill also provides for a
possible 3-year prison term and $10,000 fine for those
convicted of a subsequent violation and for unregistered
contractors hiring illegal aliens. The Secretary of Labor
would also be given authority to assess administrative
civil money penalties against violators of regulations
prescribed under the Act. He could additionally obtain
injunctive relief, and is given increased investigatory
powers. The bill also provides an independent private
right to bring civil suits for persons aggrieved by viola-
tions of the Act and further provides remedies for those
discriminated against for exercising their rights under
the Act.
Fifth, growers using workers supplied by farm labor con-
tractors are given increased responsibilities. They are
required to maintain all Federal payroll records pertaining
- 3 -
to migrant workers recruited for their benefit. Further,
growers would have to observe valid certificates of
registration in the possession of contractors before
using the contractors. If the growers fail to do so,
they would be refused the services of the Federal-State
Employment Service for up to 3 years.
In addition, the bill makes certain changes in the Long-
shoremen's and Harbor Workers' Compensation Act to make
it clear that those hearing cases under amendments or
extensions of that Act, including those newly hired indi-
viduals hearing black lung benefits cases, be hearing
examiners. Qualified hearing examiners under existing
Department statutes will be paid at the GS-16 level, as
would members of the Benefits Review Board.
Certain provisions of this bill do not reflect the views
of this Department. Other provisions contain technical
difficulties. However, we believe that the bill substan-
tially improves the effectiveness of the Act and affords
needed protections for the Nation's migrant workers.
Accordingly, we strongly recommend that the President sign
this bill.
Sincerely,
JulyJunnan
Secretary of Labor
FORD is LIBRARY 07VH39
PRESIDENTIAL SIGNING STATEMENT ON H.R. 13342
THE "FARM LABOR CONTRACTOR
REGISTRATION ACT AMENDMENTS OF 1974"
In the decade since the enactment of the "Farm Labor
Contractor Registration Act of 1963", it has become apparent
that the provisions of the law have not been adequate to
accomplish its purpose of protecting migrant farm workers
from abuses by farm labor contractors and crew leaders. For
nearly a year, the Administration has been working with the
Congress to develop legislation to improve the Act, and there
has been give and take on all sides. I am pleased that the
spirit of cooperation has resulted in legislation greatly
strengthening the Act. H.R. 13342, the "Farm Labor
Contractor Registration Act Amendments of 1974", is before
me today for my signature.
This legislation makes the following improvements in
the Act:
-- The Act's coverage is expanded. Under the existing
law, a crew leader had to be recruiting migrant workers on
an interstate basis, and recruiting 10 or more workers at any
one time before being required to register as a farm labor
contractor. This bill removes these restrictions to provide
protection for many more migrant workers under the Act.
- 2 -
-- Remedies against violators are expanded. The only
penalty which could be imposed against crew leaders who
violated the present law was a $500 fine. This has proven
to be a relatively ineffective deterrent against violations.
This legislation adds a jail sentence of up to 1 year to the
present $500 criminal fine, and a maximum fine of $10,000 as
well as a maximum 3-year jail sentence for subsequent viola-
tions of the Act. In addition to the expanded criminal
penalties, the Labor Department will now be authorized to
seek injunctions and assess administrative civil money penal-
ties. Private individuals will also have the right to bring
civil suits, and remedies are provided for those discriminated
against for exercising their rights under the Act. The Labor
Department is also given increased investigatory authority.
These provisions should go a long way toward providing the
weapons needed to assure that crew leaders live up to their
responsibilities toward the migrant workers they recruit.
-- Crew leaders' responsibilities are increased. Under
this legislation, crew leaders will be required to obtain
increased vehicle insurance coverage, and provide transporta-
tion and housing which satisfies applicable State and Federal
health and safety requirements. Crew leaders will be required
to make a more complete disclosure to migrant workers they
recruit concerning their employment. In addition, the
- 3 -
disclosure will now have to be written, and in a language in
which the workers are fluent. These provisions should afford
workers additional needed protections and assure them greater
information about the work for which they are being recruited.
-- Farmers are given increased responsibilities. Under
the present Act, farmers may use unregistered crew leaders.
This legislation requires them to observe a valid registra-
tion certificate before using crew leaders. This provision
will make it more difficult for unregistered crew leaders to
operate.
I strongly believe that these and the other amendments
to the Farm Labor Contractor Registration Act should go a
long way toward improving the working conditions of our
Nation's migrant farm workers. I therefore am pleased today
to sign into law the "Farm Labor Contractor Registration Act
Amendments of 1974."
UNITED
STATE
UNITED STATES CIVIL SERVICE COMMISSION
IN REPLY PLEASE REFER TO
CIVIL
SERVICE
COMMISSION
WASHINGTON, D.C. 20415
October 22, 1974
YOUR REFERENCE
Honorable Roy L. Ash
Director
Office of Management and Budget
Attention: Assistant Director for
Legislative Reference
Dear Mr. Ash:
This is in response to your request for the Commission's views and
recommendations on Enrolled Bill H.R. 13342, an Enrolled Bill "to
amend the Farm Labor Contractor Registration Act of 1963 by extending
its coverage and effectuating its enforcement".
This measure, dealing generally with migrant agricultural labor, pro-
poses to remedy deficiencies in the Farm Labor Contractor Registration
Act of 1963 by including intrastate as well as interstate transactions,
requiring the posting of security bonds by applicants and the issuance
of certificates of registration to applicants, and it creates a Federal
civil remedy for persons aggrieved by violations of the Act. In an un-
related area it also proposes to formalize the hearing of claims for
certain benefits and it deals with classification of the personnel who
are to preside over these proceedings. Apart from the provisions of
the legislation dealing with migrant agricultural labor, the personnel
provision of the measure would seriously affect the Commission's author-
ity and responsibility under Sections 3105 and 5108 of Title 5, United
States Code, in connection with the appointment of personnel and classi-
fication of positions under the Administrative Procedure Act. Because
of the adverse effects of the measure on the program conducted by the
Commission under the Administrative Procedure Act, the Commission opposes
this measure and urges that it be disapproved. The bill:
-
Would subvert competitive merit principles in the appointment
of Administrative Law Judges;
-
is contrary to the fundamental principles of position classifi-
cation and pay administration in that it will result in signifi-
cant overpayment of personnel in one agency and lead to unwarranted
demands for similar overly liberal salaries by large numbers of
employees in other Federal agencies;
-
would thwart the concept of equal pay for equal work; and
would over-judicialize claims proceedings and thereby unduly delay
decisions to the detriment of claimants who are entitled to speedy
and fair resolution of their cases.
THE MERIT SYSTEM-A GOOD INVESTMENT IN GOOD GOVERNMENT
2
On March 7, 1974, the Commission, after considering a request by the
Department of Labor, determined that the provisions of Public Law
92-303 and Public Law 92-576 did not require the use of APA Adminis-
trative Law Judges for the adjudication of claims for Black Lung
benefits. After this determination the Department of Labor appointed
several attorneys as hearing officers for the resolution of these
claims on an informal basis. Section 17(a) of H.R. 13342 proposes to
make the adjudication of Black Lung cases subject to the provisions of
the Administrative Procedure Act and further provides that the hearing
officers previously appointed by the Department for these cases shall
be "deemed" qualified Administrative Law Judges until such time as they
vacate their positions. Neither of these proposals is in the public
interest. The nature of the Black Lung claim best lends itself to
resolution in an informal setting where the claimant is not inhibited
by technical legal procedures or the judicialization inherent in the
provisions of the Administrative Procedure Act. Further, the provision
for grandfathering the hearing officers previously appointed by the
Department as Administrative Law Judges for these cases would not be
consonant with the provisions of Section 3105 of Title 5, United States
Code, which requires the appointment of Administrative Law Judges on a
competitive, merit basis.
Approximately one-half of the personnel currently occupying Adminis-
trative Law Judge positions in the Department of Labor hear and decide
Longshoremen claims and are classified at the GS-15 grade level. H.R.
13342 provides GS-16 for these Administrative Law Judges and further
provides that the GS-15 Administrative Law Judges unable to qualify at
the higher level will continue in their positions at GS-15. This pro-
vision is wholly inconsistent with the provisions of the Administrative
Procedure Act, now codified in Section 5362 of Title 5, United States
Code, and is violative of the concept of equal pay for equal work. The
establishment of a principle that an occupational group can be upgraded
by preferential legislation with no regard for the difficulty, complexity
and importance of their work is totally inconsistent with the concepts of
proper pay administration, violates the concept of equal pay for equal
work and it is a wedge leading to dismantling of the whole position clas-
sification system. The provisions of H.R. 13342 would place Administra-
tive Law Judges adjudicating significantly different classes of cases in
the same grade level.
The legislation also authorizes the Department any additional supergrade
positions deemed to be necessary for any Administrative Procedure Act
hearings and to which its own GS-15 Administrative Law Judges who are
qualified may be appointed. Furthermore, the members of its Benefits
Review Board shall be placed in positions not less than grade GS-16.
While the appointment by the Department of its own GS-15 Administrative
Law Judges to the newly authorized GS-16 positions could be effected on
3
a non-competitive basis, it is not consistent with the concept of the
selection of the best qualified individuals from the competitive regis-
ters maintained by the Commission on the basis of the provisions of
Section 3105 of Title 5, United States Code. Furthermore, as indicated
above, the legislative classification of the Board of Review positions
is proposed without regard to the difficulty, responsibility and complex-
ity of the work involved; and the legislative classification of these
positions and the Administrative Law Judge positions could have a serious
"domino" effect with regard to hundreds of similar positions existing in
a number of other Federal agencies.
The proposal to remedy specific deficiencies in the Farm Labor Contractor
Registration Act would not be objected to if the personnel provisions con-
tained in Section 17 were eliminated. However, in view of the serious
adverse effects of the personnel provisions of the Enrolled Bill on merit,
competitive principles, the over-judicialization of proceedings which
should be conducted in an informal, non-legalistic setting and the severe
distortion of the principle of equal pay for equal work, the Civil Service
Commission urges that the President disapprove H.R. 13342. A proposed
veto message is enclosed.
By direction of the Commission:
Sincerely yours,
RobertHampton Hampton
Chairman
Enclosure
TO THE HOUSE OF REPRESENTATIVES
I am returning to the Congress without my approval H.R. 13342, an enactment
"To amend the Farm Labor Contractor Registration Act of 1963 by extending its
coverage and effectuating its enforcement".
While I am sympathetic to the underlying purposes of this bill as it relates
to migrant workers, the enactment of certain personnel provisions, totally
unrelated to the basic bill, would disrupt sound principles of personnel admin-
istration, would create serious pay inequities by providing overly liberal
salaries to employees in one agency thereby leading to demands for similar
treatment by large numbers of employees in other agencies, and would not effec-
tively serve the interests of certain of our citizens. Provisions in the bill
having nothing to do with farm workers, would over-judicialize proceedings
involving claimants of another kind who are entitled to and should receive fair
and speedy resolution of their cases rather than the formality and delay inherent
in the Administrative Procedure Act. The unrelated provisions would also be
disruptive of the principle of equal pay for equal work by over-classifying
certain positions in the Executive Branch without due regard for the complexity
and difficulty of the work involved in those positions, thereby creating inequities
within the agency where those positions are located and between positions of that
agency and positions in a number of other agencies. In addition, the special
status conferred on a small group of employees by the personnel provisions in the
bill would not be consistent with time-honored competitive merit principles by
which scores of others have been and now are appointed to positions under the
Administrative Procedure Act.
Our concerns must be directed to furthering competitive merit principles,
correcting in every way possible imbalances that adversely affect our economy
and eliminating the delays that we are finding in the administrative agencies.
Accordingly, I must disapprove enactment of H.R. 13342 because of the serious
adverse effects of its personnel provisions.
THE WHITE HOUSE
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
715
Date:
October 25, 1974
Time:
11L30
FOR ACTION:
Michael Duval
cc (for information): Warren K. Hendriks
Geoff Shepard
Jerry Jones
Phil Buchen
Bill Timmons
Paul Theis
FROM THE STAFF SECRETARY
DUE: Date: Today, October 25, 1974
Time:
4:00 p.m.
SUBJECT: Enrolled Bill H.R. 13342 - Farm Labor Contractor
Registration Act Amendments of 1974
ACTION REQUESTED:
For Necessary Action
XX For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Kathy Tindle - West Wing
GERALD B.FORD
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately.
For the President
THE WHITE HOUSE
WASHINGTON
October 25, 1974
MEMORANDUM FOR: MR. WARREN HENDRIKS
FROM:
WILLIAM E. TIMMONS
pl
SUBJECT:
Action Memorandum - Log No. 715
Enrolled Bill H.R. 13342 - Farm Labor
Contractor Registration Act Amendments
of 1974
The Office of Legislative Affairs concurs in the attached
proposal and has no additional recommendations.
Attachment
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
715
Date:
October 25, 1974
Time:
11:30
FOR ACTION:
Michael Duval
CC (for information): Warren K. Hendriks
Geoff Shepard
Jerry Jones
Phil Buchen
Bill Timmons
Paul Theis
FROM THE STAFF SECRETARY
DUE: Date: Today, October 25, 1974
Time:
4:00 p.m.
SUBJECT:
Enrolled Bill H.R. 13342 - Farm Labor Contractor
Registration Act Amendments of 1974
ACTION REQUESTED:
For Necessary Action
XX For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Kathy Tindle - West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
Warren K. Hendriks
telephone the Staff Secretary immediately.
Zop the President
È WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
:
LOG NO.:
715
Date:
October 25, 1974
Time:
11:30
FOR ACTION:
Michael Duval
CC (for information): Warren K. Hendriks
Geoff Shepard
Jerry Jones
Caronth THE STAFF SECRETARY
Phil Buchen
Bill Timmons
Paul Theis
Date: Today, October 25, 1974
Time:
4:00 p.m.
SUBJECT: Enrolled Bill H.R. 13342 - Farm Labor Contractor
Registration Act Amendments of 1974
ACTION REQUESTED:
For Necessary Action
XX For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Kathy Tindle - West Wing
I'm on checkeng., 1/6/ock cool to stuke
Q No: defor the
& FORD LIBRARY
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
Warren K. Hendriks
telephone the Staff Secretary immediately.
For the President
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
715
Date:
October 25, 1974
Time:
11:30
FOR ACTION:
Michael Duval
CC (for information): Warren K. Hendriks
Geoff Shepard
Jerry Jones
Phil Buchen
Bill Timmons
Paul Theis
FROM THE STAFF SECRETARY
DUE: Date: Today, October 25, 1974
Time:
4:00 p.m.
SUBJECT:
Enrolled Bill H.R. 13342 - Farm Labor Contractor
Registration Act Amendments of 1974
ACTION REQUESTED:
For Necessary Action
XX For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Kathy Tindle - West Wing
Fam signing. Upgrading The heaving standach in black an
D.C.
lung cases should be required as are
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not persuasion in view 9 Labor's position
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
GERALD FORD LIBBARY
If you have any questions or if you anticipate a
delay in submitting the required material, please
Warnen K. Hendriks
telephone the Staff Secretary immediately.
Far the President