Donovan v. Shteiwi

563 F. Supp. 118, 26 Wage & Hour Cas. (BNA) 567, 1983 U.S. Dist. LEXIS 17576
CourtDistrict Court, S.D. Ohio
DecidedApril 20, 1983
DocketC-1-82-471
StatusPublished
Cited by2 cases

This text of 563 F. Supp. 118 (Donovan v. Shteiwi) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donovan v. Shteiwi, 563 F. Supp. 118, 26 Wage & Hour Cas. (BNA) 567, 1983 U.S. Dist. LEXIS 17576 (S.D. Ohio 1983).

Opinion

OPINION AND ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

SPEIGEL, District Judge.

This matter came on for consideration of defendant’s motion for summary judgment (doc. 9), plaintiffs memorandum in opposition (doc. 11), and defendant’s reply. For the reasons set forth below we find that defendant’s motion is well-taken and should be granted.

This is an action brought by the Secretary of Labor (Secretary) against the defendant, a sole proprietorship, doing business as Gold Star Chili. Plaintiff alleges violations of the minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act of 1938 (the Act), 29 U.S.G. §§ 201 et seq. Plaintiff seeks an injunction against future violations and the continued withholding of back wages due to certain employees.

In 1961 the Fair Labor Standards Act was amended to provide minimum wage and overtime protection to all employees of an enterprise if the establishment has two or more employees engaged in commerce or the production of goods for commerce and *120 if the “annual gross volume of sales of such enterprise” exceeds a certain dollar amount per year. ($250,000.00 since November 1, 1977; $275,000.00 since July 1, 1978; and $325,000.00 since July 1, 1980). 29 U.S.C. § 203(s)(2); see Wirtz v. Columbian Mutual Life Insurance Company, 380 F.2d 903, 905 (6th Cir.1967).

It is undisputed that by itself, Gold Star Chili did not meet the annual gross volume designated in the Act. Plaintiff contends, however, that defendant Gold Star Chili is subject to coverage under the Act pursuant to 29 U.S.C. § 203(s)(2) because Gold Star Chili, together with Caruso’s Ristorante, owned and operated by Rakan Company, Inc. constitute an enterprise under 29 U.S.C. § 203(r), thus bringing Gold Star Chili within the purview of the Act.

29 U.S.C. § 203(r) provides in part:
(r) ‘Enterprise’ means the related activities performed (either through unified operation or common control) by any person or persons for a common business purpose, and includes all such activities whether performed in one or more establishments or by one or more corporate or other organizational units including departments of an establishment operated through leasing arrangements ....

29 U.S.C. § 203(s) states in pertinent part:

(s) ‘Enterprise engaged in commerce or in the production of goods for commerce’ means an enterprise which has employees engaged in commerce or 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, and which—
(2) is an enterprise which is comprised exclusively of one or more retail or service establishments, as defined in section 213(a)(2) of this Title, and whose annual gross volume of sales made or business done [exceeds the amounts designated above].

In order to find that defendant is covered by the Act, we need, therefore, to find: (1) an enterprise; (2) gross volume sales over the designated amount; and (3) two or more employees engaged in commerce or in the production of goods for commerce. Wirtz v. Columbian Mutual Life Insurance Company, 380 F.2d at 905-06. The only real question in this case is whether defendant Gold Star Chili and the Rakan Company, Inc., doing business as Caruso’s Ristorante, together constitute an enterprise for purposes of the Act. If there is such an enterprise, it is conceded that the gross volume sales exceed the amount designated in the statute and that there are two or more employees engaged in commerce or in the production of goods for commerce. If they do not together constitute an enterprise, the gross volume sales of Gold Star Chili do not reach the amount designated in the statute and Gold Star Chili would not be covered by the Act.

Because this question is before us on motion for summary judgment, the narrow question which we must decide is whether there is “no genuine issue as to any material fact and [whether] the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). The Court cannot try issues of fact on a Rule 56 motion, but is empowered only to determine whether there are issues to be tried. 10 Wright & Miller, Federal Practice and Procedure: Civil, § 2712 at 379 (1973). The moving party “has the burden of showing conclusively that there exists no genuine issue as to a material fact and that the evidence together with all inferences to be drawn therefrom must be read in the light most favorable to the party opposing the motion.” Smith v. Hudson, 600 F.2d 60, 63 (6th Cir.1979) (emphasis original).

We have carefully reviewed the pleadings and the affidavits filed in support of the parties’ positions and find that the material facts are largely undisputed and that the only issues before the Court are the legal conclusions to be drawn therefrom. The question, therefore, of whether the facts presented establish the existence of an enterprise within the purview of the Act is a question of law to be decided by the Court. Brennan v. Plaza Shoe Store, 522 F.2d 843, 846 (8th Cir.1975).

*121 Three elements must be found to coexist if Gold Star Chili and the Rakan Company, doing business as Caruso’s Ristorante, are to be considered a single enterprise: (1) related activities; (2) unified operation or common control; and (3) a common business purpose. See Brennan v. Arnheim & Neely, Inc., 410 U.S. 512, 518, 93 S.Ct. 1138, 1142, 35 L.Ed.2d 463 (1973); Wirtz v. Columbian Mutual Life Insurance Company, 380 F.2d 903, 905 (6th Cir.1967).

In support of his contention that Gold Star Chili and Caruso’s Ristorante constitute an enterprise, plaintiff alleges that Caruso’s Ristorante and Gold Star Chili were engaged in the related business activity of preparing and serving food and beverages to the public, that defendant Rakan 0. Shteiwi had control over both establishments, and that Gold Star Chili and Caruso’s Ristorante both served the common business purpose of preparing and serving food and beverages to the public.

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Related

Wallace v. Pyro Mining Co.
789 F. Supp. 867 (W.D. Kentucky, 1990)
Donovan v. Shteiwi
738 F.2d 438 (Sixth Circuit, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
563 F. Supp. 118, 26 Wage & Hour Cas. (BNA) 567, 1983 U.S. Dist. LEXIS 17576, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donovan-v-shteiwi-ohsd-1983.