Banks v. Mercy Villa Care Center

407 N.W.2d 793, 225 Neb. 751, 28 Wage & Hour Cas. (BNA) 485, 1987 Neb. LEXIS 951
CourtNebraska Supreme Court
DecidedJune 26, 1987
Docket85-817
StatusPublished
Cited by34 cases

This text of 407 N.W.2d 793 (Banks v. Mercy Villa Care Center) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Banks v. Mercy Villa Care Center, 407 N.W.2d 793, 225 Neb. 751, 28 Wage & Hour Cas. (BNA) 485, 1987 Neb. LEXIS 951 (Neb. 1987).

Opinions

Per Curiam.

The then small claims department of the municipal court of the city of Omaha entered a judgment for back wages in the amount of $1,000 in favor of plaintiff, Larry Lynn Banks, and against defendant, Mercy Villa Care Center. On appeal the district court found that plaintiff failed to establish he was entitled to damages under the provisions of the Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq. (1982), and therefore reversed the judgment and dismissed plaintiff’s action. In this appeal Banks challenges the district court’s finding and resultant judgment. We reverse and remand with direction.

The center, located in Omaha, is described by the record as a retirement home for nuns and priests. According to Banks, some of the center’s “patients” were “out of staters” from Iowa, Colorado, and Missouri who were visited by persons from other states. The center employed Banks as a security guard for the period from November 25, 1978, to December 1, 1983.

Banks’ primary responsibilities were to remain at the front desk to answer the telephone and to periodically check the boilers between the hours of 11 p.m. and 7 a.m. At 7 a.m. the receptionist relieved him of his telephone answering duties, and the maintenance crew took over the boiler responsibility. Nonetheless, the center required Banks to remain on its premises until 7:30 a.m.

[753]*753During that last half hour Banks would eat breakfast and get coffee for himself and the receptionist. In addition, he would go outdoors to check the grounds and would stand by the door to assist the residents if needed. Most often, he would read the newspaper.

For the first 6 to 8 months Banks was paid on the basis of a 42V2-hour workweek. Following that period of time, he was paid on the basis of a 40-hour workweek. When Banks inquired why he had to remain on the premises until 7:30, he was told that the center was required to provide him with a half-hour break for meals.

The act requires that employers subject to its provisions pay each employee engaged in commerce or in the production of goods for commerce, or who is employed in an enterprise which is engaged in commerce or in the production of goods for commerce, specified wages for all hours worked, certain of which are to be compensated at overtime rates. 29 U.S.C. §§ 206 and 207; Tennessee Coal Co. v. Muscoda Local, 321 U.S. 590, 64 S. Ct. 698, 88 L. Ed. 949 (1944). The act defines commerce as meaning “trade, commerce, transportation, transmission, or communication among the several States or between any State and any place outside thereof.” 29 U.S.C. § 203(b). In short, commerce as used in the act means interstate commerce.

There is no proof that Banks was himself engaged in interstate commerce or in the production of goods for interstate commerce. Thus, Banks falls within the purview of the act only if the record establishes that the center was at the relevant time an enterprise engaged in interstate commerce or in the production of goods for interstate commerce.

An enterprise, as defined in 29 U.S.C. § 203(r), includes an “institution primarily engaged in the care of the sick, the aged, the mentally ill or defective who reside on the premises of such institution, ” whether public or private, or whether for profit or not for profit. Thus, while the record is sketchy, the description of the center as a retirement home which had patients is sufficient to establish that the center was an enterprise as defined by the act. According to 29 U.S.C. § 203(s), an enterprise is “engaged in commerce” if it “has employees [754]*754engaged in commerce or in the production of goods for commerce, or employees handling, selling, or otherwise working on goods or materials that have been moved in or produced for commerce by any person...

That an enterprise such as the center, which was not engaged in the production of goods, was engaged in interstate commerce is generally established by a stipulation or proof that the enterprise used, or its employees handled, goods which were manufactured, processed, or supplied by sources outside the state. Marshall v. Brunner, 668 F.2d 748 (3d Cir. 1982); Marshall v. Child Care Center, 23 Wage & Hour Cas. 477 (BNA 1977); Brennan v. State of Iowa, 494 F.2d 100 (8th Cir. 1974); Shultz v. Union Trust Bank of St. Petersburg, 297 F. Supp. 1274 (M.D. Fla. 1969).

However, the U.S. Supreme Court has consistently construed the act liberally so as to apply it to the furthest reaches consistent with congressional direction in recognition of the fact that broad coverage is essential to accomplish the goal of outlawing from interstate commerce goods produced under conditions that fall below minimum standards of decency. Tony & Susan Alamo Foundation v. Sec’y of Labor, 471 U.S. 290, 105 S. Ct. 1953, 85 L. Ed. 2d 278 (1985); Mitchell v. Lublin, McGaughy & Asso., 358 U.S. 207, 79 S. Ct. 260, 3 L. Ed. 2d 243 (1959). In keeping with that principle, Marshall v. Sideris, 524 F. Supp. 521 (D. Neb. 1981), concluded that an enterprise which operated a number of hotels was engaged in interstate commerce because it provided accommodations to transient guests. Similarly, Wirtz v. Healy, 227 F. Supp. 123 (N.D. Ill. 1964), ruled that employees of a travel agency who, as a part of the agency’s business, escorted travel tours through several states and foreign countries and ordered, purchased, received, distributed, and otherwise handled tickets, vouchers, coupons, and documents relating to transportation, living accommodations, meals, and related facilities, as well as sent and received reports and other documents, were engaged both in interstate commerce and in the production of goods for interstate commerce.

The U.S. Supreme Court, in Atlanta Motel v. United States, 379 U.S. 241, 85 S. Ct. 348, 13 L. Ed. 2d 258 (1964), concluded [755]*755that a motel which provided accommodations to interstate transient guests was subject to the provisions of the Civil Rights Act of 1964, which, among other things, prohibits racial discrimination in places of public accommodation affecting interstate commerce. Hodgson v. Brookhaven General Hospital, 436 F.2d 719 (5th Cir. 1970), appeal after remand

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Banks v. Mercy Villa Care Center
407 N.W.2d 793 (Nebraska Supreme Court, 1987)

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Bluebook (online)
407 N.W.2d 793, 225 Neb. 751, 28 Wage & Hour Cas. (BNA) 485, 1987 Neb. LEXIS 951, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banks-v-mercy-villa-care-center-neb-1987.