Baker v. California Shipbuilding Corp.

73 F. Supp. 322, 1947 U.S. Dist. LEXIS 2299
CourtDistrict Court, S.D. California
DecidedApril 29, 1947
DocketNo. 5246
StatusPublished
Cited by7 cases

This text of 73 F. Supp. 322 (Baker v. California Shipbuilding Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker v. California Shipbuilding Corp., 73 F. Supp. 322, 1947 U.S. Dist. LEXIS 2299 (S.D. Cal. 1947).

Opinion

McCORMICK, District Judge.

All parties to this action have conceded that the defendant California Shipbuilding Corporation was at all relevant times in issue engaged in the building of ships for the United States Maritime Commission under cost plus fixed fee contracts.

It is also agreed between the litigants that all plaintiffs remaining in the case at this time, with the exception of one Jesse L. Sevy, were in their employment while working for the defendant shipbuilding company engaged in production of goods in interstate commerce within the meaning of the Fair Labor Standards Act, 29 U.S. C.A. § 201 et seq., at all times.

Broadly considered, the plaintiffs in this action fall into two categories: First, guards and firemen, respectively, and Second, other types of employment.

Primarily it should be noted that under the concrete record before us it should not be held in the light of the objectives of the Fair Labor Standards Act to require each plaintiff employee to appear personally and testify. The identification of the plaintiffs as similarly situated workers in defendant’s shipyard during the period of time relevant to this action has been established without dispute by the pleadings and proofs. Such factual certainty, being uncontroverted, warrants recovery by employees for all unpaid working time. Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680, 66 S.Ct. 1187, 90 L.Ed. 1515; Culver v. Bell & Loffland, 9 Cir., 146 F.2d 29.

We have concluded that except as to the issue of “Exempt Classifications,” the only factors of. this controversy that are not mathematical are: (a) the compensable allowability of “reporting time,” (b) the sufficiency of proven “lunch eating time” as an offset item, (c) the effect attributable to the executed complete settlement agreement, (d) the preferential status of veterans on items otherwise outlawed, and (e) the deductibility of insufficiently authorized payment by defendant of wages to plaintiffs.

[325]*325Our conclusions upon each of the specifications just mentioned are as follows:

As to Guards and Firemen: The evidence shows that the guards were required to report thirty minutes before their shifts began. It is well settled that they are entitled to compensation therefor. Anderson v. Mt. Clemens Pottery Co., supra. This period was for roll call, reading of orders, and reaching the guard’s place of duty.

The evidence also shows that the guards spasmodically took some time off for lunch during their regular shift, but the amount of time so consumed has been shown to be so indefinite and transitory as to make it impossible to ascertain with any degree of certainty a calculation to be applied as a setoff against reporting time, as the defendant claims.

It is also established under the record before us that firemen were required to report fifteen minutes in advance of their shift for roll call and orders.

The evidence shows that after the company changed over from a weekly to an hourly rate of pay for the shipyard workers settlements were made and releases for all amounts owing were executed between the defendant and each plaintiff herein. The basis of settlement was compensation for twenty minutes’ reporting time for both guards and firemen. These settlements are not legally binding on employees, and under applicable administrative regulations and decisions they may recover for any unpaid wages plus liquidated damages. D. A. Schulte, Inc., v. Gangi, 328 U.S. 108, 66 S.Ct. 925, 90 L.Ed. 1114, 167 A.L.R. 208; Brooklyn Savings Bank v. O’Neil, 324 U.S. 697, 65 S.Ct. 895, 89 L.Ed. 1296. However, we are of the opinion that the defendant should be allowed to set off all amounts paid under such releases against such sum as may be found to be lawfully due to the plaintiffs herein.

Plaintiffs and defendant are agreed upon the number of hours worked and the weekly pay rates. They also agree that the “fluctuating work week” method of computing the hourly wages as set forth in Overnight Motor Transportation Co. v. Missel, 316 U.S. 572, 62 S.Ct. 1216, 86 L.Ed. 1682, should be adopted by the court in the determination of this action.

Plaintiffs seek to have the court apply all sums paid under the settlement and release agreements to periods prior to March 26, 1943, for which periods any claims to compensation by the plaintiffs are now outlawed except as to those plaintiffs who served in the armed forces; it having been well settled in the Ninth Circuit that the three-year limitation applies to actions like the instant case. We think such contention by plaintiffs is untenable under the record before us in this action. The court determines the recovery in this case by using the number of hours of overtime (half time for regular overtime and for reporting time) multiplied by the rate per hour and doubled as liquidated damages. All amounts already paid respective employees under settlement and release agreements will then be deducted. The result will be the net amount owing to each plaintiff. For this purpose we adopt the second alternative computation submitted by the defendant in its answer to plaintiffs’ claims filed February 21, 1947.

We have concluded that plaintiffs’ counsel should be relieved from a stipulation made in the early stages of this action as to two plaintiffs who are veterans of World War II. These plaintiffs are, respectively, Leslie W. Cammack, a guard, and Carl O. Hanson, a fireman. These two men were in the armed services during World War II, and the statute of limitations otherwise applicable was tolled as to them. 50 U.S.C.A.Appendix, § 525. In both cases the period of their military service exceeded the period of employment that would be otherwise outlawed. We are of the opinion that each of such persons should recover any overtime owing and unpaid retroactive to the date of their employment. In the absence of other evidence this amount must be computed on the basis of $170.00 per month as to each veteran and must allow for four hours (eight hours of half time) per week on the basis of forty-eight hours’ work each week. No recovery for reporting time is allowed prior to March 26, 1943, as the record fails to [326]*326show the existence of the “reporting in” requirement prior to that date.

As to Second, Other Types of Employment: We are of the opinion that as in the case of Guards and Firemen, the releases in evidence, where given, are not binding upon the employee, but we allow as a setoff the respective amounts paid at the time of the execution of such releases to the full amount of the sums paid by the defendant to the respective plaintiff.

We think that in the ultimate decision of this action under the record before us, and as alleged in the third affirmative defense in defendant’s answer to the second amended complaint, the defendant should be allowed credit for the respective amounts of money paid to the so-called exempt category of employees as set forth in Exhibit “B” of defendant’s answer to plaintiffs’ claims filed herein February 21, 1947, and it is accordingly so ordered.

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Bluebook (online)
73 F. Supp. 322, 1947 U.S. Dist. LEXIS 2299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-v-california-shipbuilding-corp-casd-1947.