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21.5 Fiscal affairs-(a) Financial reports. Preparation of budgets, maintenance of accounts and quarterly reports of expenditures, for the entire State employment service system, shall be conducted in accordance with the Bulletin of the Federal Service, entitled "Fiscal Rules and Regulations."

(b) Audits. The accounting records and the supporting data pertaining to expenditures for the entire State Service system shall be subject to audit by the Federal Service annually, or so often as the Federal Director may require.* (Sec. 9, 48 Stat. 116; 29 U.S.C. 49h)

21.6 Minimum standards of efficiency. The following minimum standards of efficiency shall apply to each State Service, in all of its operations throughout the State:

(a) Official name. The official name of the State Service shall State Employment Service Affiliated with.

be"

United States Employment Service";

(b) Personnel. Personnel of the State Service and all employees assigned for duty with the State employment service system shall be selected and shall hold office in accordance with the State Civil Service laws, or in accordance with the Merit System of the Federal Service as provided in the bulletin of the Federal Service, entitled "Personnel Standards of the United States Employment Service";

(c) Premises, equipment, etc. The premises, layout, signs and equipment of the State Service offices shall conform with the standards stated in Employment Office Manual entitled "Premises, Layout and Equipment of Public Employment Offices";

(d) Interviewing of applicants. The interviewing of applicants shall be conducted in accordance with principles indicated in Employment Office Manual entitled "Interviewing Applicants in Public Employment Offices";

(e) Definitions and forms. All definitions and forms used by the State Service in connection with the placement process, maintenance of files, and preparation of reports shall be as prescribed in the following Employment Office Manuals:

"Registration Procedures,"

"Procedures for Handling Employer Orders and Placements,"
"Maintenance of Contacts with Applicants."

** (Sec. 3, 48 Stat. 114; 29 U.S.C. 49b)

21.7 Reporting program-(a) Report of current activities. Each State Service shall report current activities in accordance with the following Employment Office Manuals:

"Preparation of Reports of Activities in Public Employment Offices," "Occupational Titles and Codes for use in Public Employment Offices Group Arrangements,"

"Occupational Titles and Codes for use in Public Employment Offices Alphabetic Arrangement,"

"Industrial Classifications and Codes for use in Public Employment Offices."

(b) Responsibility for reporting program. A member of the administrative staff of each State Service shall be charged with responsibility for the supervision of the reporting program in all offices of the State Service, and in each employment office a qualified

**For statutory and source citations, see note to § 21.1

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member of the staff shall be charged with responsibility for administration of the reporting program.

(c) Research. All research projects to be undertaken by the State Service which may involve the expenditure of Federal funds or of State funds appropriated to the State Service shall be referred to the Federal Service for approval before incorporation in the program of the State Service.*† (Secs. 3, 9, 48 Stat. 114, 116; 29 U.S.C. 49b, 49h)

21.8 Veterans' placement service. Each State Service shall maintain a veterans' service to be devoted to securing employment for veterans. For that purpose it shall utilize as a member of its administrative staff, the State Veterans' Placement Representative of the Federal Service in the performance of the duties outlined in the "Guide for the Directors of State Employment Services and Veterans' placement representatives." Each State Service shall incorporate and coordinate the Veterans' placement service in all operating offices of its system.** (Sec. 3 (a), 48 Stat. 114; 29 U.S.C. 49b (a))

21.9 Farm placement service. Each State Service shall maintain a farm placement service. For that purpose it shall utilize as a member of its administrative staff the service of the State farm placement supervisor, (in those States where such supervisors have been appointed by the Federal Service), in the performance of the duties outlined in the "Manual for Placement of Agricultural Labor." Each State Service shall incorporate and coordinate the farm placement service in all operating offices of its system.*t (Sec. 3 (a), 48 Stat. 114; 29 U.S.C. 49b (a))

21.10 Affiliated employment agencies. A municipal, junior, or other public employment agency may be affiliated with a State Service, at the discretion of the State Director, and with the concurrence of the Federal Director, only if such municipal, junior, or other employment agency:

(a) Becomes by agreement of affiliation with the State Service a part of the State-controlled system of public employment offices; (b) Is supported in whole or in part by funds made available by an agency of the State, or by a local subdivision;

(c) Is administered by a public board or agency;

(d) Accepts no fees for its service;

(e) Does not duplicate the service provided by an office of the State Service;

(f) Employs one or more workers giving full time to placement work, or to employment counseling;

(g) Maintains its activities for the entire 12 months of the year.*† (Sec. 5 (a), 48 Stat. 114; 29 U.S.C. 49d (a))

21.11 Interstate clearance of workers. Provision shall be made by each State Service for the interstate clearance of workers and of unfilled openings in accordance with the instructions entitled "Procedures for Effecting Clearance of Workers in Public Employment Offices."** (Sec. 3 (a), 48 Stat. 114; 29 U.S.C. 49b (a))

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**For statutory and source citations, see note to § 21.1

21.12 Notice of strikes and lockouts. Each State Service shall give notice of strikes and lockouts in accordance with the instructions entitled "Procedure for Giving Effect to the Provision of the Wagner-Peyser Act Regarding Strikes or Lockouts."*† (Sec. 11 (b), 48 Stat. 117; 29 U.S.C. 49j (b))

21.13 Free transmission of official mail. It shall be the duty of each State Service, which becomes entitled to free transmission of official mail matter, to see that all offices of its system exercise that privilege subject to the requirements of law and of the regulations of the Post Office Department as well as subject to the rules of the Federal Service as stated in "Use of the Penalty Mailing Privilege by State Employment Services Affiliated with United States Employment Service."* (Sec. 13, 48 Stat. 117; 29 U.S.C. 491)

CROSS REFERENCE: For regulations of the Post Office Department, see 39 CFR Chapter I.

21.14 Advisory councils-(a) State. A State advisory council shall be appointed for each State Service and shall function in accordance with the provisions of section 11 (a) of the WagnerPeyser Act and the "Specifications Governing State Advisory Councils and State Employment Services affiliated with the United States Employment Service."

(6) Local. Local advisory councils may be organized at the option of a State Service. When organized, they shall comply, in so far as practicable, with "Specifications Governing Local Advisory Councils of State Employment Services affiliated with the United States Employment Service."** (Sec. 11 (a), 48 Stat. 116; 29 U.S.C. 49j (a))

21.15 Amendments, supplements, repeals. The rules and regulations in this part may from time to time be amended, supplemented, or repealed by appropriate orders issued by the Director of the United States Employment Service, with approval of the Secretary of Labor.* [Last paragraph, Rules and Regulations, United States Employment Service, June 7, 1937, 2 F.R. 986]

**For statutory and source citations, see note to § 21.1

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205 Service of papers

206 Certification and signature of docu-
ments

207 Construction of rules
208 Amendments

203 Procedure under section 9 (c) of
the Act for the investigation and 209 Appendix
certification of representatives

as

204 Designation of regional directors, examiners, and attorneys agents of the Board

SUPPLEMENTAL PUBLICATIONS

Annual report of the National Labor Relations Board. Jan. 1937, Jan. 1938. Decisions and orders of the National Labor Relations Board. Irregular, v I-VI, Dec. 1936-May 1938.

Governmental protection of labor's rights to organize, National Labor Relations Board, Division of Economic Research. Bulletin 1, Aug. 1936.

For list of abbreviations used in this chapter, see note to § 201.1.

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Section 201.1 Terms defined. The terms "person", "employer", "employee", "representatives", "labor organization", "commerce", "affecting commerce", and "unfair labor practice", as used in this chapter, shall have the meanings set forth in section 2 of the National Labor Relations Act (49 Stat. 450; 29 U.S.C., Sup., 152).*+

*§§ 201.1 to 201.6, inclusive, issued under the authority contained in sec. 6 (a), 49 Stat. 452; 29 U.S.C., Sup., 156.

+In 88 201.1 to 201.6, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in Art. I, Rules and regulations, series 1, as amended, NLRB, Apr. 27, 1936, 1 F.R. 277.

ABBREVIATIONS: The following abbreviations are used in this chapter:

Art.
NLRB

R. & Regs.
Ser.

Article.

National Labor Relations Board.

Rules and regulations, National Labor Relations Board.
Series.

201.2 Act. The term "Act" as used in this chapter shall mean the National Labor Relations Act (49 Stat. 449; 29 U.S.C., Sup., 151-166), and the term "Board" shall mean the National Labor Relations Board.**

*For statutory and source citations, see note to § 201.1.

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