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RETAIL CLERKS INTL. ASSN. v. SHULTZ

December 20, 1972

RETAIL CLERKS INTERNATIONAL ASSOCIATION, AFL-CIO, et al., Plaintiffs,
v.
George P. SHULTZ et al., Defendants


Richey, Judge.


The opinion of the court was delivered by: RICHEY

RICHEY, Judge.

 I. Facts

 The following facts are undisputed. On August 15, 1970, Congress enacted the Economic Stabilization Act of 1970 (Act), *fn1" contained in Title II of Public Law 91-379, 84 Stat. 799. Section 202 of the Act authorized the President to issue such orders and regulations as he might deem appropriate to stabilize prices, rents, wages and salaries. Section 203 gave him authority to delegate the performance of any functions under the Act to such agencies of the United States as he deemed appropriate.

 Pursuant to his authority, the President issued Executive Order 11615, *fn2" Section 1(a) of which declared that "wages and salaries shall be stabilized for a period of 90 days . . . at levels not greater than the highest of those [during the 30 day base period] for like or similar . . . services." Section 3(a) delegated to the Cost of Living Council the President's powers as conferred by the Act, and Section 4(a) specified that the Cost of Living Council in carrying out the provisions of the Order had the authority to "(i) prescribe definitions for any terms used herein, (ii) make exceptions or grant exemptions, (iii) issue regulations and orders, and (iv) take such other actions as it deems necessary and appropriate to carry out the purpose of this Order." Section 7 authorized fines of $5,000 and injunctions against violations of orders or regulations issued under the Order.

 Subsequently, the Cost of Living Council issued Order No. 1 *fn3" which delegated to the Director of the Office of Emergency Preparedness the "responsibility and authority to implement, administer, monitor, and enforce the stabilization of . . . wages, and salaries as directed by Section 1" of Executive Order 11615. The Cost of Living Council limited its delegation by requiring that "significant policy decisions shall be made only after consultation with the Council." Citing this authority, the Office of Emergency Preparedness issued Economic Stabilization Regulation No. 1, *fn4" Section 2(b) of which provided:

 
"No employer shall pay and no employee shall receive a wage, salary, or other form of compensation at a rate higher than that paid or received or in effect during the base period . . . Such remuneration shall be based upon a substantial number of actual transactions for services of like or similar nature."

 Section 3(c) of the Regulation provided in part:

 
"Deferred wage or salary increases which were negotiated to take effect in the future, . . . and routine ingrade increases not in effect on or before August 14, 1971, are not permitted."

 II. Issues Presented

 III. Discussion

 A. The Prohibition Against Progression Increases Does Not Violate the Standards of Fairness and Equity Inherent in the Act, Nor ...


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