Brennan v. Gustafson's Dairy, Inc.

382 F. Supp. 964, 21 Wage & Hour Cas. (BNA) 1085, 1974 U.S. Dist. LEXIS 6562
CourtDistrict Court, M.D. Florida
DecidedSeptember 26, 1974
DocketNo. 74-69-Civ-J-S
StatusPublished

This text of 382 F. Supp. 964 (Brennan v. Gustafson's Dairy, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brennan v. Gustafson's Dairy, Inc., 382 F. Supp. 964, 21 Wage & Hour Cas. (BNA) 1085, 1974 U.S. Dist. LEXIS 6562 (M.D. Fla. 1974).

Opinion

ORDER AND OPINION

CHARLES R. SCOTT, District Judge.

The Secretary of Labor brings this action under Section 17 of the Fair Labor Standards Act, 29 U.S.C. § 217 (hereinafter referred to as the Act). He seeks to enjoin defendant Gustafson’s Dairy, Inc., from violating the provisions of Section 15(a)(2) of the Act, 29 U.S.C. § 215(a)(2), and to restrain defendant from withholding payment of overtime compensation due employees under Section 7 of the Act, 29 U.S.C. § 207. Section 7 requires that employers pay employees at a rate of not less than one and one-half times the regular rates at which they are employed for hours worked in excess of forty hours per week.

Only eight of defendant’s employees are involved in this action. While admitting the general jurisdictional allega[965]*965tions of the Secretary’s complaint,1 Gustafson’s affirmatively alleges that these particular employees are specifically exempt from the operation of Sections 15(a)(2) and 7 of the Act by Section 13(b) (12) of the Act, 29 U.S.C. § 213(b) (12), exempting “any employee employed in agriculture. . . . ” Finding that the eight do not come under the agricultural exemption, this Court holds for the Secretary.

I.

Gustafson’s Dairy, Inc., is a Florida corporation engaged in the production and distribution of dairy products. From its establishment in 1908 until the present it has been owned by the Gustafson family. In the early years of its existence, Gustafson’s was typical of dairying operations in northern Florida. In those years the dairy industry predominately consisted of a number of small dairy farms. Each farm was owned and operated by a single family whose members actively engaged in the production of raw milk, the processing of this milk into a marketable commodity and the delivery of the finished product to the individual consumers in the vicinity. With increases in consumer demand, the added sophistication of dairying equipment, and the advent of modern transportation systems, many of these family operations eventually found it more economical to confine themselves to either the production of raw milk or the processing of raw milk into marketable milk. Gustafson’s, however, has avoided this trend and maintains itself today as both a producer and processor.

Gustafson’s has always maintained a herd of dairy cattle. For most of the dairy’s existence this herd has supplied all the raw milk required. The demand for Gustafson’s milk, however, eventually outstripped the supply which could be produced from its own herd, thus compelling Gustafson’s to turn to outside sources for raw milk.

Most of the raw milk purchased from outside comes from the Upper Florida Milk Growers Association. This milk is trucked to Gustafson’s processing facility where it is commingled with the milk produced by Gustafson’s and placed in storage until processed. The amount of milk purchased varies from month to month. The record reveals, for example, that, in August 1973, Gustafson’s purchased 45.4% of its raw milk requirement from outside sources, while in February 1974, Gustafson’s purchased only 17% from outside sources. The average amount purchased from outside sources is approximately 28% of the raw milk requirement. The percentage varies according to the output of Gustafson’s own cows which in turn varies with the seasons. The controlling factor in determining how much outside milk is brought in is, of course, the amount of raw milk required to meet the demand for the finished product.

Gustafson’s maintains its processing facility at its farm in Green Cove Springs, Florida. There the raw milk is refined into its various by-products. Most of these by-products are derived exclusively from the raw milk while others such as chocolate milk, buttermilk and skimmed milk require mixture with additives. The additives are primarily obtained from outside sources. In addition, Gustafson’s finds it necessary to handle a small percentage of products which are obtained completely from outside sources. Cottage cheese, sour cream and orange and grapefruit juices are purchased by Gustafson’s and then resold.

II.

Section 13(b) (12), 29 U.S.C. § 213^) (12), exempts from the operation of the Fair Labor Standards Act “any employee employed in agriculture. . ” Under Section 3(f), 29 U.S. C. § 203(f), “agriculture” is defined to include,

“ . . . farming in all its branches and among other things includes . dairying . . . and any practices . . . performed by a [966]*966farmer or on a farm as an incident to or in conjunction with such farming operations, including preparation for market, delivery to storage or to market or to carriers for transportation to market, (emphasis added)

Commenting on this definition, the Supreme Court has said,

As can be readily seen this definition has two distinct branches. First, there is the primary meaning. Agriculture includes farming in all its branches. Certain specific practices such as . dairying . are listed as being included in this primary meaning. Second, there is the broader meaning. Agriculture is defined to include things other than farming as so illustrated. It includes any practices, whether or not themselves farming practices, which are performed either by a farmer or on a farm, incidently to or in conjunction with ‘such’ farming operations.

Farmers Reservoir & Irrigation Co. v. McComb, 337 U.S. 755, 69 S.Ct. 1274, 93 L.Ed. 1672 (1949). It is clear then that the agricultural exemption has been interpreted to include not only farm workers in the traditional sense but also those employed in non-agricultural jobs yet jobs necessarily associated with the complete and successful operation of an agricultural enterprise. To be exempt, an employee may fall into either category. Thus, when considering the applicability of the exemption to specific employees, a two level analysis is required —first, to see if their employment situation fits the primary meaning of agriculture and then in the alternative? to see if it fits the secondary meaning.

(a) Primary Meaning

As discussed in N. L. R. B. v. Tepper, 297 F.2d 280 (10th Cir. 1961), the dairying industry,

encompasses a great number of activities directed toward the production of milk, butter and cheese, and commonly entails two distinct businesses — that of the dairy farmer and that of the processor. The discussion of this Act [Fair Labor Standards Act] in the United States Senate demonstrates clearly that the exemption was intended for the farmer and not the processor, 81 Cong.Rec., July 27, 1937, p. 7656.

Tepper, supra, at p. 282.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
382 F. Supp. 964, 21 Wage & Hour Cas. (BNA) 1085, 1974 U.S. Dist. LEXIS 6562, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brennan-v-gustafsons-dairy-inc-flmd-1974.