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I Approved Code No. 282
Registry No. 1728-2-11
L RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON FEBRUARY 16, 1934
[ ,[ I
UNITED STATE, ,
GOVERNMENT PRINTING OllgCE,
WASHINGTON : 1934
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Approved Code No. 282
CODE OF FAIR COMPETITION
As Approved on February 16, 1934
CODE OF FAIR COMPETITION FOR THE RESTAURANT INDUSTRY
An application having been made, pursuant to and in full com-
pliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Restaurant Industry, and hearings
having been held thereon and the Administrator having rendered his
report containing an analysis of the said Code of Fair Competition
together with his recommendations and findings with respect thereto,
and the Administrator having found that the said Code of Fair Com-
petition complies in all respects with the pertinent provisions of
Title I of said Act and that the requirements of clauses (1) and (2)
of subsection (a) of Section 3 of the said Act have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations and
findings of the Administrator and do order that the said Code of
Fair Competition be and it is hereby approved, subject to the follow-
1. That Article V, Section 7 of said Code of Fair Competition be
and it is hereby suspended from operation until the first day of
June, 1934, or until such time as the Administrator shall have re-
viewed the operation of said Code pursuant to the provisions of
Article IX, Section 3 thereof, as to employees:
(a) who are paid for a forty-eight (48) hour work week, not less
than the minimum wages prescribed in Article VI, Section 1, sub-
section (a) of said Code for a fifty-four (54) hour work week;
(b) not less than fifty (50) percent of whom are lodged by their
employers on or in the vicinity of the restaurant premises; and
(c) who are employed in a restaurant which serves food only at
restricted meal periods for a limited number of hours at each meal
period, at prices which customarily are included in a combination
price for board and lodging furnished by the same establishment;
(i) that not more than fourteen (14) consecutive hours shall
elapse between the beginning and termination of the hours worked
by the above described employees in any twenty-four (24) hour
(ii) that not more than two intervals off duty shall be permitted
during the course of any twenty-four (24) hour period of employ-
(iii) that no such employee shall be permitted to work more than
nine (9) hours in any twenty-four (24) hour period nor more than
forty-eight (48) hours in any one week.
2. That Article V, Section 7 of said Code of Fair Competition
be and it is hereby suspended from operation until the first day of
June, 1934, or until such time as the Administrator shall have re-
viewed the operation of said Code pursuant to the provisions of
Article IX, Section 3 thereof, as to employees of hotel restaurants
einploying not more than fifteen (15) persons in the operation of
said restaurants, provided:
(a) that no such employee shall be permitted to work in excess
of forty-eight (48) hours in any one week nor more than nine (9)
hours in any twenty-four (24) hour period;
(b) that no such employee shall be paid for such forty-eight (48)
hour work week, less than the minimum wages prescribed in Article
VI, Section 1, subsection (a) of said Code for a fifty-four (54) hour
(c) that not more than fourteen (14) consecutive hours shall
elapse between the beginning and termination of the hours worked
by such employees in any twenty-four (24) hour period; and
(d), that not more than two intervals off duty shall be permitted
during the course of any twenty-four (24) hour period of em-
3. That the regular full time work week of any class of employees
immediately prior to the date of this order, shall not be increased,
irrespective of the regular full time work week of such class of
employees on June 16, 1933; and that under no circumstances what-
soever shall any female employee be permitted to work in excess of
forty-eight (48) hours in any one week except as provided in Article
V, Section 5 of said Code.
4. That because the Administrator believes that further investi-
gation of the stop loss provision of this Code is required, the pro-
visions of Article VII, Section 12, be and hereby are suspended
from operation and shall not become effective pending further
investigation and report from the Code Authority and further in-
vestigation by the Administrator to determine whether such provi-
sions shall be indefinitely suspended or modified, or become effec-
tive and pending further order by the Administrator.
5. That within ninety (90) days after the effective date of this
Code, the Administrator may, after due notice, hold such further
hearings as he may deem necessary for the purpose of determining
the adequacy of the minimum wages established in this Code, and
thereafter shall submit to me his report and recommendations for
my further order, which further order by me shall constitute a modi-
fication of, and shall have the effect of a further condition of, my
approval of this Code.
FRANKLIN D. ROOSEVELT.
HUGH S. JOHNSON,
A d in strator.
THE WHITE HOUSE,
February 16, 1934.
LETTER OF TRANSMITTAL
The White Houise, Washington, D.C.
SIR: This is a report of the hearing on the Code of Fair Compe-
tition for the Restaurant Industry, conducted in accordance with the
provisions of the National Industrial Recovery Act.
The hearings on the labor provisions of the Code were held in the
Main Auditorium of the United States Chamber of Commerce Build-
ing on November 27, 28 and 29, 1933. The hearing on the fair
trade practice provisions was held in Room B" of the United
States Chamber of Commerce Building on December 11, 1933.
The Code was presented by the National Restaurant Association,
which comprises in its own membership the leaders of the Industry
throughout the United States. There are affiliated with this associa-
tion over 150 state and local restaurant associations, who joined with
the parent association in presenting the Code. These associations
are said to represent at least 70 percent of the Industry by volume
During the preparation of this Code the National Restaurant As-
sociation caused meetings to be held in the various regional sections
of the country, and an opportunity was given to all members of the
Industry to state their views as to the pertinent provisions of the
It is estimated that the Industry as defined in the Code comprises
at least 450,000 units, and that between 1,250,000 and 1,500,000 per-
sons are now employed in the Restaurant Industry. It is said that
the number of persons now employed in restaurants is considerably
larger than the number employed in 1929. It is estimated that the
annual payrolls of the Industry amount to between $1,000,000,000
PROVISIONS OF THE CODE
The work hours may not be entirely satisfactory from a purely
social standpoint, but they represent a very substantial reduction
from the hours which prevailed in the Restaurant Industry and
will result in an estimated employment of between 125,000 and
150,000 persons in the Industry above the number employed on June
15, 1933. The Code provides for a six day work week, which is a
definite innovation in the Industry.
The Code provides for minimum wages for all classes of employees
and it is estimated by the Industry that the resultant increase in
total payrolls will be at least 25 percent above the amounts paid as
of June 15, 1933.
The Code further provides that it may be reviewed by the Admin-
istrator not later than June 1, 1934, to ascertain whether the provi-
sions thereof have affectuated or will affectuate the policy and
purposes of the National Industrial Recovery Act.
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try for the purpose of cooperative action among trade groups, by
inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by elimi-
nating unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required) by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing and
relieving unemployment, by improving standards of labor, and by
otherwise rehabilitating industry.
(b) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub-
section (b) of Section 10 thereof; and that the applicant association
is an industrial association truly representative of the aforesaid In-
dustry; and that said association imposes no inequitable restrictions
on admission to membership therein.
(c) The Code is not designed to and will not permit monopolies or
(d) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(e) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons, I recommend that this Code be approved.
HUGH S. JOHNSON,
FEBRUARY 15, 1934.
CODE OF FAIR COMPETITION FOR THE RESTAURANT
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code of
Fair Competition for the Restaurant Industry.
ARTICLE II-APPLICATION OF THE CODE
The provisions of this Code, and such other provisions as may
subsequently be approved and annexed hereto, and except as specifi-
cally hereinafter otherwise provided, shall apply and be binding
upon every member of the Restaurant Industry, as hereinafter
defined in Article III.
SECTION 1. The term restaurant industry as used herein, shall
mean the business of operating, directly or indirectly or through any
subdivision, a restaurant, as hereinafter defined in Section 2.
SECTION 2. The term restaurant" as used herein shall include any
establishment which, for compensation, prepares and offers food for
consumption either on any of its premises, or by catering and banquet
service, or by box lunch service, or by curb service, and customarily
serves at least ten (10) people per day.
SECTION 3. The term food as used herein, shall mean nutritive
material intended for human consumption in solid and/or liquid
form, whether simple, mixed, compounded, cooked, uncooked, or
otherwise prepared, excluding however, preparations sold or pro-
duced primarily for their vitamin content, or medicinal or quasi-
MEMBER OF THE INDUSTRY
SECTION 4. The term "member of the industry" as used herein,
includes, without limitation, any individual, partnership, association,
corporation, or other form of enterprise engaged in the industry,
either as an employer or on his or its own behalf.
SECTION 5. The term employer as used herein, shall mean any
one by whom an employee is compensated or employed.
SECTION 6. The term "employee as used herein, shall mean ally
person employed in the restaurant industry.
SECTION 7. The term curb employee as used herein, shall mean
employees engaged exclusively as outside salesmen serving curb
DEFINITION OF PERSONNEL
SECTION 8. (a) Maintenance Employee.-The term maintenance
employee as used herein, shall mean an employee essential to the
upkeep and/or preservation of the premises and property of a
(b) W'atch.m.en and Gu.alde.-The term watchmen and guard "
as used herein, shall mean employees engaged in watching and safe-
guarding the premises and property of a restaurant.
(c) Service Employee.-The term service employee as used
herein shall include waiters and waitresses engaged in table, counter,
and,'or room service and hat and coat checkers, whose duties consist
chiefly in rendering direct service to customers, and who regularly
receive monetary recognition from such customers for the services
rendered; provided, however, that if the classification of any em-
ployee or group of employees as service or non-service employees
should operate to discriminate unjustly between employees of the
same restaurant establishment or between restaurant establishments
of the same class operating under similar conditions, the Administra-
tor on application by such affected parties, and on recommendation
of the Code Authority, may, after such notice and hearing as he may
deem necessary, make such reclassification as justice may require.
(d) Eaecutive.-The term executive as used herein, shall mean
an employee responsible for the management of the business or a
recognized subdivision thereof.
(e) Part-time employee.-The term part-time employee as u-,ed
herein shall mean an employee who works less than the maximum
work week prescribed herein.
SECTION 9. The term South as used herein shall mean Vir-
ginia, West Virginia, Maryland. North Carolina, South lCarolina,
Georgia, Florida, Kentucky, Tennessee, Alabama, Mississippi,
Arkansas, Louisiana. Oklahoma, New Mexico and Texas.
PRESIDENT, ACT AND ADMINISTRATOR
SECTION 10. The terms President Act and "Administrator
as used herein shall mean, respectively, the President of the United
States, Title I of the National Industrial Recovery Act, and the
Administrator for Industrial Recovery.
SECTION 11. Population for the purposes of this Code shall be
determined by references to the Fifteenth Census of the United
States (U. S. Department of Commerce, Bureau of the Census,
ARTICLE IV-GENERAL LABOR PROVISIONS
SECTION 1. (a) Employees shall have the right to organize and
bargain collectively through representatives of their own choosing,
and shall be free from interference, restraint, or coercion of em-
ployers of labor, or their agents, in the designation of such repre-
sentatives or in self-organization or in other concerted activities for
the purpose of collective bargaining or other mutual aid or
(b) No employee and no one seeking employment shall be re-
quired as a condition of employment to join any company union
or to refrain from joining, organizing, or assisting a labor organiza-
tion of his own choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
SECTION 2. On and after the effective date of this Code, no per-
son under the age of sixteen (16) years shall be employed in the
This provision shall not relieve any employer from complying
with any state or federal law which imposes more stringent require-
ments as to age of employees than are prescribed by this section.
ARTICLE V-HouRs OF LABOR
BASIC WORKING DAYS
SECTION 1. No employee shall be permitted to work more than
six (6) days in any one week, except as hereinafter otherwise
BASIC WORKING HOURS
SECTION 2. No male employee except as hereinafter otherwise
provided, shall be permitted to work more than fifty-four (54) hours
in any one week and no female employee shall be permitted to work
more than forty-eight (48) hours in any one week; provided, how-
ever that where the normal full-time work week for any particular
class of employees was forty-eight (48) hours, or any number of
hours less than fifty-four (54) hours per week on June 16, 1933, or
for the employees first full week of employment after June 16, 1933,
such full-time work week of such class of employees shall not be
increased, nor shall the full time weekly wage of such class of
employees be reduced below their full time weekly wage on June 16,
1933, for performing the same work.
EMPLOYMENT BY SEVERAL EMPLOYERS
SECTION 3. No employer shall knowingly engage any employee for
any time which totaled with that already performed with another
employer or employers, exceeds the maximum hours prescribed
NOTICE OF MAXIMUM HOURS TO BE POSTED
SECTION 4. Within eight (8) days after the effective date of this
Code every member of the industry shall post and maintain in a con-
spicuous place, readily accessible to all employees during the ordinary
course of their duties, a notice of the maximum hours permitted
under this Code.
EXCEPTIONS TO MAXIMUM HOURS OR PERIODS OF LABOR
SECTION 5. (a) Watchmitn iand Guards'.-The niaximum hours of
work prescribed in this Article shall not apply to watchmen and
(b) Maintenance Employees.-The maximum hours of work pre-
scribed in this Article, shall not apply to maintenance employees,
provided, however, that such employees shall be paid at not less than
one and one-third times their normal rate for all hours worked in
excess of their fifty-four (54) hours in any one week.
(c) Executives.-Subject to the conditions set forth in Section 6
of this Article, executives regularly receiving not less than the
salaries hereinbelow set forth, exclusive of any charges for meals
may be permitted to work in excess of the maximum hours of work
prescribed in this Article. In the South executives regularly receiv-
ing not less than fifteen per cent (15,.) less than the salaries herein-
below set forth, exclusive of any charges for meals, may be permitted
to work in excess of the maximum hours of work prescribed in this
Article. In Kansas and Missouri, executives regularly receiving
not less than ten per cent (10%) less than the salaries hereinbelow
set forth, exclusive of any charges for meals may be permitted to
work in excess of the maximum hours of work prescribed in this
Per c cel
Cities of over 300,000 population--------- --------------------_ $30.00
Cities of from 100,000 to 300.000 population-------------_-----_--_ 27.50
Cities of from 25,000 to 1(0),000 population---------------_---------_ 25.00
Cities or places of less than 25,000 population .----_ --..------------_ 22.50
(d) Limited Overtime.-In cases of temporary peak times, when
the maximum hour provisions of this Article would unduly restrict
business operations, the Code Authority may, upon application set-
ting forth the facts substantiating the necessity therefore, approve,
subject to review by the Administrator, the extension of the max-
imtun hours of any employee whose basic work week is fixed by
Section 2 of this Article, by not more than 10% of his normal maxi-
mum hours for a period not to exceed 3 weeks in the first six months
of the calendar year and not to exceed 31weeks in the second six
months calendar year; or, in the case of such an employee of a
restaurant which is open for business for any period of'not more
than six (6) months in any calendar year by not more than ten per
cent (10%) of his normal maximum hours for a period of not to
exceed six (6) weeks. All such additional hours of work shall be
paid for at not less than one and one-third (1/) times the normal
rate for all hours worked in any one week in excess of the employee's
normal maximum hours.
(e) Emergency.-In cases of very special emergency requiring the
specific attention of a particular executive, maintenance employee,
watchman or guard, or threatening damage or destruction to the
property of a restaurant establishment, executives receiving the sala-
ies hereinabove specified, maintenance employees, watchmen and
guards may be permitted to work in excess of six (6) days per
LIMITATION UPON NUMBER OF PERSONS WORKING UNRESTRICTED HOURS
SECTION 6. Notwithstanding the provisions of the foregoing sec-
tions of this Article, and regardless of the munber of persons other-
wise permitted to work unrestricted hours, the total number of work-
ers in any restaurant (whether such workers are executives, proprie-
tors, partners, persons not receiving monetary wages, or others) who
may be permitted to work unrestricted hours, shall not exceed the
In restaurants comprised of twenty (20) workers or less, the
total number of workers who may be permitted to work unrestricted
hours (not including the workers specified in Section 5 (a) of this
Article) shall not exceed one worker for every five workers or
In establishments comprised of more than twenty (20) workers,
the total number of workers (not including those workers specified
in Section 5 (a) of this Article) shall not exceed one worker for
every five (5) workers for the first twenty (20) workers, and shall
not. exceed one worker for every eight (8) workers above twenty (20).
SPREAD OF WORKING HOURS AND NUMBER OF SHIFTS PER DAY
SECTION 7. Not more than twelve (12) consecutive hours shall
elapse between the beginning and the termination of the hours
worked by any employee in any twenty-four (24) hour period, and
not more than one interval off duty shall be permitted during the
course of such twelve (12) consecutive hour period of employment.
Time out for meals within the twelve (12) hour spread but not to
exceed a total of one hour, shall not constitute ah interval off duty
between split shifts.2
I See paragraph 3 of order approving this Code.
SSee paragraphs 2 (1) and 2 (2) of order approving this Code.
CONFLICT WITH STATE LAWS
SECTION 8. No provision of this Article shall relieve any employer
from complying with any federal law or law of any state or sub-
division thereof which imposes more stringent requirements as to
hours of labor than are prescribed in this Article.
BASIC SCHEDULE OF WAGES
SECTION 1. (a) Except as hereinafter otherwise provided, em-
ployees shall be paid each week at not less than the minimuim rates of
wages hereinbelow set forth for a fifty-four (54) hour work week.
Nonserv- S vi Nonserv- Service
Population of cities or places ice em- em oy Population of cities or places ice em- mpl
ployees employees ployees
Over 500,000.--- -- ---.... $15.00 $10.50 25,000-100,000.........-----.. $13 50 $10.25
250,000-500,000.--..----..--- 14.50 10.50 10,000-25,000..--------- 12.75 10 00
1000,00-250,000.. -.--....- .. 14.00 10.25 Less than 10,000...-..----.-- 12.00 9.50
(b) Curb Employees.-The minimum wages prescribed in Sec-
tion 1 of this Article shall not apply to curb employees; the Code
Authority shall appoint a joint committee of employers of curb
employees and employers who do not employ curb employees to
investigate the effect of the provisions of this subsection upon the
entire restaurant industry, which committee shall within four (4)
months after the effective date of this Code submit to the Adminis-
trator recommendations based upon its investigation and study, for
his further consideration of this provision or for the modification
thereof. The Administrator may, after such notice and hearing as
he may prescribe, approve such recommendations, and upon such
approval by the Administrator such recommendations shall constitute
a part of and have the same force and effect as the provisions of
SECTION 2. (a) Charge for Meals.-Where it has been mutually
agreed between an employee and an employer that such employee
shall receive meals as a part of the remuneration of such employee,
a sum of not to exceed twenty-five (25) cents for each meal fur-
nished to such employee, but not to exceed a total of three (3)
dollars per week, may be deducted from the wages of such employee.
In no case shall an employee receive less cash per week because of
this charge than that employee received on June 16, 1933, for per-
forming the same work.
(b) Charge for Lodgin.g.-No employer shall make any deduc-
tions from the minimum wages prescribed in this Article for lodging
except under the following terms and conditions:
1. Where lodging has been furnished to employees by established
custom in the restaurant establishment or by reason of peculiar
location requiring that employees be lodged;
2. In no case shall such deductions exceed the sum of $2.50 per
3. In no case shall an employee receive less cash per week because
of this charge than that employee received on June 16, 1933 for
performing the same work.
4. In no case shall such deductions be made except by mutual'
agreement. between employer and employee.
5. In no case shall such deductions be made unless prior thereto,
application has been made to the Code Authority setting forth the
pertinent facts specified in paragraphs 1 to 4 inclusive of this dub-
section, and the approval of the Code Authority, subject to review
by the Administrator, has been obtained.
(c) Charge for Uniforms.-Where an employee is required by"his
employer to wear a uniform no deductions from the minimum wages
prescribed in this Article shall be made by such employers, except
that such uniform may, by agreement between such employee and
his employer, be obtained and sold by the employer to such employee
at a price of not to exceed the actual cost to the employer, subject
to the following conditions:
(1) that in the case of a female employee such price shall not
exceed five dollars ($5) per uniform;
(2) that in the case of a male employee such price shall not
exceed five dollars ($5) per uniform, unless such uniform is of
such standard design that it may be used by such male employee
in performing the same work for other employers in the same city
or place, in which case such price shall not exceed twenty dollars
($20() per uniform;
(3) that no employer shall permit any of his agents or employees,
or engage or conspire with any third party, to pursue any course
of action not permitted such employers by this section.
(4) that in those cases where uniforms are purchased, employees
shall have the option to purchase such uniforms outright, or to
reimburse the employer at the rate of ten per cent (10%) of the
price per week, except that after notice to the Code Authority, set-
ting forth pertinent facts, and approval by the Code Authority,
subject to review by the Administrator, other rates may be agreed
upon and authorized. If, upon termination of employment., such
lpurclhase price shall not have been paid in full, such employee shall,
in the absence of a contrary agreement by such employee, have the
option to pay the unpaid balance due forthwith and retain the uni-
form, or to surrender such uniform to the employer and thereby
cancel the obligation to make any further payments therefore. In
lieu of such purchase or in the case of uniforms requiring laundering,
the employee may at his option rent such uniform from the em-
ployer or compensate the employer for laundry services, at a rate
of not to exceed the actual cost to the employer of laundering and in
no event to exceed twenty-five (25) cents for each laundering.
(d) No deductions from the minimum wages prescribed in this
Article, other than those specifically permitted in this section or as
may be required by law, shall be made for any purposes whatsoever.
LIMITATIONS ON WAGE REDUCrIONS
SECTION 3. (a) In the event that the full time weekly hours
worked by any employee on June 16, 1933, are required by this Code
to be reduced, the gross weekly wages of such employee as of June 16,
1933, shall not be reduced by more than one-half the difference
between such gross weekly wages as of June 16, 1933, and the gross
weekly wages of such employee for the maximum hours prescribed
by; this Code computed at the hourly rate received by such employee
on June 16, 1933; provided, however, that no employee shall be paid
less cash per hour than he was paid on June 16, 1933, and in no case
less than the minimum rates prescribed in this Code.
(b) Notwithstanding any other provisions of this Article, the
total cash paid per week to any service employee shall not be less
than the amount paid to such employee in cash on June 16, 1933, for
performing the same work.
CONFLICT WITH STATE LAWS
SECTION 4. No provisions of this Article shall relieve any employer
from complying with any federal law or law of any state or sub-
division thereof which imposes more stringent requirements as to
wages than are prescribed by this Article.
NOTICE OF MINIMUM WAGES RATES TO BE POSTED
SECTION 5. Within eight (8) days after the effective date of this
Code every member of the industry shall post and maintain in a
conspicuous place readily accessible to all employees, during the ordi-
nary course of their duties, a notice of the minimum wage rates
required to be paid under this Code.
SOUTHERN WAGE DIFFERENTIAL
SECTION 6. The minimum rates of pay prescribed in this Arti-
cle may be reduced by not more than fifteen per cent (15%) in the
South and by not more than ten per cent (10%) in the states of
Kansas and Missouri.
CHANGE OF EMPLOYMENT
SECTION 7. Where any employee has, since June 16, 1933, secured
employment in the restaurant Industry or has changed or may here-
after change his employment within the restaurant industry from
one employer to another employer, the provisions of Section 2 of
Article V and Section 2 of this Article with respect to "full time
weekly wage and "cash per week shall be deemed to be the cash
per week paid for the same work on June 16, 1933, by the employer
for whom such employee now works or may hereafter work.
MINIMUM WAGE ESTABLISHED
SECTION 8. This Article establishes a minimum rate of pay irre-
spective of the basis on which an employee is compensated.
SECTION 9. Part-time employees shall be paid not less than an
hourly rate proportionate to the rates prescribed in the foregoing
sections of this Article in accordance with hours worked."
ARTICLE VII-TRADE PRACTICES
SECTION 1. NO member of the industry shall use advertising
whether printed, radio, display, or bill-of-fare, or any other form of
publicity which is inaccurate in any material particular or misrepre-
sents food, merchandise, service, credit terms, values, or policies, and
no member of the industry shall use advertising and/or selling meth-
ods which tend to deceive or mislead customers or prospective
SECTION 2. No member of the industry shall offer or give a free
deal. The term free deal ", as used in this paragraph means a gift
of free food, money, presents, advertising space, or specimen meal, as
an inducement to secure business; provided, however, that this sec-
tion shall not be construed to prohibit free and general distribution
of articles for advertising purposes.
PRIZES AND PREMIUMS
SECTION 3. NO member of the industry shall offer any prize or
premium or gift in pursuance of a plan which involves fraud or
deception or lottery.
SECTION 4. No member of the industry shall defame a competitor
by publishing or circulating false and disparaging statements about
his merchandise or his business.
BREACH OF CONTRACT
SECTION 5. No member of the industry shall maliciously induce
or attempt to induce, by any false or deceptive means whatsoever,
the breach of an existing contract between a competitor and his
source of supply or between a competitor and his customer; or
interfere with or obstruct the performance of any such contractual
relations with the purpose and effect of hampering, injuring or
embarrassing competitors in their business.
TRADE MARKS AND TRADE NAMES
SECTION 6. No member of the industry shall wilfully imitate the
trade marks, trade names, slogans, or other marks of identification of
competitors, which imitation has the tendency and capacity of mis-
leading or deceiving customers or prospective customers.
' See paragraph 4 of order approving this Code.
SECTION 7. No member of the industry shall accept contributions
for advertising his restaurant establishment from any manufacturer,
wholesaler or purveyor.
CLAIMING TO UNDERSELL COMPETITORS
SECTION 8. No member of the industry shall use advertising which
inaccurately lays claim to a policy or continuing practice of gen-
erally underselling competitors.
ENTICEMENT OF EMPLOYEES
SECTION 9. No member of the industry shall entice employees of
any competitor for the purpose of harassing such competitor or
interfering with his business.
UNLAWFULLY COERCED GIFTS
SECTION 10. No member of the industry shall pay any money or
make any gifts or gratuities of any nature to any individual, organi-
zation, or association, for privilege or protection inherently his
under the law.
PAYMENTS FOR PRIVILEGE OF WORKING
SECTION 11. No employer shall accept, nor shall he knowingly per-
mit any of his employees to accept money or gifts of any kind from
an employee or prospective employee for the privilege of working or
for any other advantage.
STOP LOSS PROVISION
SECTION 12. In order to prevent and discourage the unfair com-
petition resulting from the operation of restaurants at continuing
and excessive losses with the consequent pressure exerted against
labor and the producer of raw materials to absorb such losses, fre-
quent labor turnover and increasing unemployment, no member of
the industry shall sell food at retail prices which result in a food-
stuff purchase cost to him in excess of fifty per cent (50%o) of his
gross monthly food sales; provided however, that the foregoing
provision shall not prohibit any member of the industry from sell-
ing food at retail without a profit to himself and provided further
that where in exceptional cases any member of the industry demon-
strates to the Code Authority or its duly authorized agent that
it is able to operate without losses on a percentage of foodstuff
purchase cost in excess of fifty percent (50%), the Code Authority
may approve, subject to review by the Administrator, the use of a
higher maximum percentage of foodstuff purchase cost by such
member of the industry.'
See paragraph 4 of order approving this Code.
NATIONAL RESTAURANT CODE AUTHORITY
SECTION 1. (a) A Code Authority of five (5) members of the in-
dustry and not more than three (3) representatives of the Adminis-
trator. to be known as the National Restaurant Code Authority, shall
be established by the industry for the purpose of administering,
supervising and promoting the performance of the provisions of this
Code. The Code Authority shall assist the Administrator in all
matters relating to the administration of the provisions of this Code.
(b) The Code Authority shall be selected immediately upon the
approval of this Code and in accordance with the following rules:
(1) Five members of the industry shall be chosen; three shall be
selected by the National Restaurant Association and two shall be
appointed by the Administrator to represent those members of the
industry who are not members of said association.
(2) The Administrator may appoint not more than three repre-
sentatives to participate, but without vote, in the activities of the
Code Authority and of any committee thereof.
(3) Any vacancies occurring in the membership of the Code Au-
thority shall be filled by the selection of a new member in the same
manner and from the same class as that of the member whom he
(4) The Code Authority shall have as its chairman one of its
members duly elected by said Code Authority.
(5) Members of the Code Authority shall serve for such term as
may be designated or until their successors are selected.
(c) In order that the Code Authority shall at all times be truly
representative of the industry and in other respects comply with the
provisions of the Act, the Administrator may, after such hearings
as he may deem proper, require an appropriate modification in the
method of selection of the Code Authority.
(d) The Code Authority may from time to time present to the
Administrator recommendations based on conditions in the industry
which will tend to effectuate the operations of this Code. The Code
Authority shall consult with the Administrator as to such adminis-
trative interpretations of this Code as he or it may propose. Such
recommendations, upon the approval of the Administrator, after
such notice and hearing as he may prescribe, and such interpreta-
tions, upon their issuance by him after consultation with the Code
Authority, shall become operative as a part of the Code.
(e) The Code Authority shall, subject to the approval of the
Administrator, supervise the organization and operation within
States of State Code Authorities, which shall be subject to the
National Restaurant Code Authority, for the purpose of assisting
in the administration and enforcement of this Code within such
States, and further, of local trade area codes authorities which shall
be subject to the National and State Code Authorities. All such
State and local code authorities shall be truly representative of the
industry in their respective areas.
Subject to such regulations as the National Restaurant Code
Authority shall issue, each State Code Authority shall be responsible
for the administration of this Code within the State, and shall make
such reports to the National Restaurant Code Authority on all
matters of local administration, finance, enforcement methods and
progress as the National Restaurant Code Authority may direct.
(f) The National Restaurant Code Authority may provide for
the payment by each member of the industry of his equitable share
of the expenses of the administration of this Code, subject to the
approval of the Administrator.
RULES, REGULATIONS AND DECISIONS
SECTION 2. (a) Rules, regulations and decisions of the National
Restaurant Code Authority pertaining to the administration of this
Code shall be submitted for consideration to the Administrator, and
such rules, regulations and decisions shall be subject to his disap-
proval; provided that if such decision by the Administrator is not
announced within ten days, the National Restaurant Code Authority
may act in accordance with such rule, regulation or decision until
such time as the rile, regulation or decision shall be disapproved.
(b) If the Administrator shall determine that. any action of the
Code Authority or any agency thereof may be unfair or unjust or
contrary to the public interest, the Administrator may require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by the Code
Authority pending final action,, which shall not be effective unless
the Administrator approves or unless he shall fail to disapprove after
thirty days notice to him of intention to proceed with such action in
its original or modified form.
HOTEL RESTAURANTS ADMINISTRATION: LIAISON I.UMMITTEE
SECTION 3. (a) The provisions of this Code in their application to
restaurants operated in conjunction with hotels as defined in the
Code of Fair Competition for the Hotel Industry, approved by the
President on November 17, 1933, shall be administered by the Code
Authority constituted by Article VIII of said Code of Fair Competi-
tion for the Hotel Industry, subject, however, to the provisions of
the following paragraphs of this Section. This Section shall not be
construed as relieving any hotel restaurant from the provisions of
(b) The Code Authority hereby constituted for the Restaurant
Industry and the Code Authority constituted for the Hotel Industry
by the aforesaid Code as approved November 17, 1933, shall each
appoint from their respective Code Authority members one repre-
sentative. The two representatives so appointed shall constitute the
Hotel and Restaurant National Liaison Committee.
(c) The National Liaison Committee, as a body separate from
the Hotel and Restaurant Code Authorities, shall have the power to
determine and to make recommendations concerning the respective
jurisdiction of the Hotel and Restaurant Code Authorities; and any
dispute which may arise in either industry as to the respective juris-
diction or as to any conflicting rules, regulations and decisions of
the said two Code Authorities, shall be referred to the National Liai-
son Committee for determination. All determinations and recom-
mendations of the National Liaison Committee shall be subject to
the approval of the Administrator. Except as is in this Section 3 (c)
otherwise provided, the National Liaison Committee shall have no
power to administer any of the provisions of this Code.
(d) Where deemed necessary by the National Liaison Committee
or by the Administrator, the National Liaison Committee shall cause
to be constituted for limited periods in any state or local area a state
or local liaison committee, to consist of two members similarly
appointed by the respective State Hotel and Restaurant Code
Authorities functioning in such State. Within the area for which
any such state or local liaison committee shall have been constituted,
the powers of such state or local committee shall be the same as are
hereby conferred upon the National Liaison Committee, subject, how-
ever, to review and approval by the latter and by the Administrator.
(e) All records of the Hotel and Restaurant Code Authorities
(pertaining to restaurants) shall at all times be open to examination
by the National Liaison Committee and all similar records of any
state or local code authority in each industry shall be at all times
open for examination by the National Liaison Committee and by
the appropriate state or local liaison committee, if any, constituted
for such area.
(f) The expenses of the National, State and Local Liaison Com-
mittee, shall, upon approval thereof by the National Liaison Com-
mittee, be borne equally by the said two Code Authorities.
SECTION 4. Within sixty (60) days after the effective date of this
Code, the Code Authority shall appoint a committee to cooperate
with the United States Public Health Service and a committee
appointed by the Conference of State and Provincial Health Author-
ities of North America in formulating and recommending for the
approval of the Administrator, minimum standards of cleanliness,
maintenance of equipment and other sanitary safeguards. Upon
the approval of such standards by the Administrator, members of
the restaurant industry shall conform with such minimum standards,
provided, however, that nothing contained in this section shall
relieve any member of the industry from complying with any state
or local laws, regulations or ordinances, either prior to the for-
mulation and approval of such standards, nor thereafter, if the
requirements of such laws, regulations or ordinances are more strin-
gent than the minimum standards approved by the Administrator
pursuant to the foregoing provision.
MEMBERSHIP IN ASSOCIATION
SECTION 1. Membership in the National Restaurant Association
or any affiliated or state associations, or in any other trade or indus-
trial association participating in the selection or activities of the
National Restaurant Code Authority, or represented upon the Na-
tional Restaurant Code Authority, shall be open to all members of
the Restaurant Industry, and said associations shall impose no in-
equitable restrictions upon admission to membership therein.
EXCEPTIONS IN CASES OF UNUSUAL OR UNDUE HARDSHIP
SECTION 2. Where the operation of the provisions of this Code
imposes an unusual or undue hardship upon any member of the
Restaurant Industry or group of such members, such member or
group of members may make application for relief to the Adminis-
frator through the Code Authority and the Administrator may,
after such public notice and hearing as he may deem necessary, grant
such exception to or modification of the provisions of this Code as
may be required to effectuate the purposes of the National Industrial
REVIEW BY ADMINISTRATOR
SECTION 3. The operation of this Code may be reviewed by the
Administrator not later than June 1, 1934, to ascertain whether the
provisions thereof have effectuated or will effectuate the policy and
purposes of the National Industrial Recovery Act.
REPORTS AND INVESTIGATIONS
SECTION 4. The National Restaurant Code Authority shall, subject
to the approval or upon the request of the Administrator, require
from members of the Restaurant Industry such reports as are neces-
sary to effectuate the purposes of this Code and may, upon its own
initiative or upon complaint of any person affected, make investiga-
tion as to the functioning and observance of any provisions of the
Code and report the results of such investigations to the Adminis-
trator. Any reports required by the Code Authority shall be sub-
mitted to an impartial agency designated by the Code Authority,
and not a member of the industry, and shall not be revealed to any
member of the industry, except in summary, provided however, that
such information shall be available to the Administrator upon
request and provided further that such information may be divulged
if necessary to facilitate the administration of this Code. In addi-
tion to information to be submitted to the Code Authority, there
shall be furnished such statistical information as the Adminstrator
may deem necessary for the purposes recited in Section 3(a) of the
Act to such Federal and State agencies as the Administrator may
designate; no provision of this Code shall relieve any member of the
industry of any existing obligation to furnish reports to govern-
PROHIBITION AGAINST MONOPOLIES
SECTION 5. The provisions of this Code shall not be interpreted
or applied to promote monopolies or monolistic practices or to elim-
inate or oppress small enterprises or to discriminate against them.
DURATION OF IMMUINITIES
SECTION 6. The benefits, privileges, and immunities conferred by
this Code shall cease upon its termination except with respect to
acts done prior thereto.
PROHIBITION AGAINST USE OF SUBTERFUGE
SECTION 7. No member of the industry shall use any subterfuge
to frustrate the spirit and intent of this Code, which is, among other
things, to increase employment by universal covenant, to remove
obstructions to commerce, to shorten hours of work, and to raise
wages to a living basis.
RIGHT OF PRESIDENT TO CANCEL OR MODIFY
SECTION 8. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of Section 10 (b) of Title I of the National Industrial
Recovery Act, from time to time to cancel or modify any order,
approval, license, rule, or regulation, issued under Title I of said Act.
MODIFICATIONS AND SUPPLEMENTARY PROVISIONS
SECTION 9. Such of the provisions of this Code as are not required
to be included herein by the National Industrial Recovery Act, may
with the approval of the President, be modified or eliminated as
changes in conditions or experience may indicate. It is contemplated
that from time to time supplementary provisions to this Code will
be submitted for the approval of the President to prevent unfair
competitive practices and to effectuate the other purposes and pol-
icies of Title I of the National Industrial Recovery Act.
SECTION 10. This Code shall continue in effect until June 16, 1935,
or the earliest date prior thereto on which the President shall by
proclamation, or the Congress shall by joint resolution, declare that
the emergency recognized by Section 1 of the National Industrial
Recovery Act has ended.
ARTICLE X-EFFECTIVE DATE
The effective date of the Code shall be the second Monday after
its approval by the President of the United States.
Approved Code No. 282.
Registry No. 1728-2-11.
UNIVERSITY OF FLORIDA
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