Gemsco, Inc. v. Walling

324 U.S. 244, 65 S. Ct. 605, 89 L. Ed. 921, 1945 U.S. LEXIS 2702
Supreme Court of the United States·Decided April 2, 1945·No. Nos. 368 to 370·Published·Cited by 276 cases

Opinions

Mr. Justice Rutledge

delivered the opinion of the Court.

The issue to be decided in these cases is narrow. It is whether respondent, as Administrator, has authority under § 8 (f) of the Fair Labor Standards Act, 52 Stat. 1060, to prohibit industrial homework as a necessary means of making effective a minimum wage order for the embroideries industry. The question arises in proceedings brought to review the order pursuant to § 10. The cases were consolidated for hearing in the Circuit Court of Appeals, which sustained the Administrator’s action, one judge dissenting. Guiseppi v. Walling, 144 F. 2d 608. Because of the public importance of the question and its importance for purposes of administering the statute, certiorari was granted, 323 U. S. 695, limited to the stated issue.1

One of the Act’s primary objectives was “a universal minimum, wage of 40 cents an hour in each industry [246] engaged in commerce or in the production of goods for commerce” and to reach this level as rapidly as was “economically feasible without substantially curtailing employment.” §8 (a). Accordingly, §6 established basic minimum statutory wages, to be stepped up from 25 cents an hour to 40 cents generally2 during the seven years from the section's effective date, October 23, 1938. Limited flexibility was provided in accordance with the declared purpose to reach the 40-cent level earlier if “economically feasible.” Cf. 83 Cong. Rec. 9256. Section 8 empowers the Administrator to convene industry committees which, after investigation, report to him their recommendations concerning minimum wages3 and reasonable classifications. § 8 (a), (b), (c), (d). The Administrator is then required by order to approve and carry into effect the committee's recommendations, after notice to interested persons and opportunity to be heard, if he finds they “are made in accordance with law, are supported by the evidence . . . and . . . will carry out the purposes” of the section; otherwise he must disapprove them. § 8 (d).

The Act’s scheme is therefore a combination of “statutory” minimum wages fixed by § 6 and what may be termed “committee” wages,4 fixed by order made pursuant [247] to § 8. The former prevail in the absence of special administrative action; the latter, when such action has been taken to prescribe for a specific industry a higher level than the generally prevailing statutory floor. The order in this case, entered on approval of the committee’s recommendations, after notice and extensive hearings,5 prescribed a minimum wage of 40 cents an hour, an increase [248] of 2% cents over the previously prevailing “committee” rate.6 Petitioners have not contested this, the primary, term of the order.

In this statutory setting stands § 8 (f), the crucial provision which in material part is as follows:

“(f) Orders issued under this section shall define the industries and classifications therein to which they are to apply, and shall contain such terms and conditions as the Administrator finds necessary to carry out the -purposes of such orders, to prevent the circumvention or evasion thereof, and to safeguard the minimum wage rates established therein. No such order shall take effect until after due notice is given . . .” (Emphasis added.)

I

The narrow issue turns upon the scope properly to be given the emphasized portions of the section. Respondent says that this authorizes him to take whatever action he finds necessary to prevent circumvention or evasion of the order so that the wage rate it establishes may be safeguarded; and that in this case his findings, amply [249] sustained by the evidence, show prohibition of industrial homework is necessary to accomplish this end. As applied in this case, he has construed “necessary” not as meaning “helpful,” “consistent,” or “convenient,”7 but as connoting that the prohibition is absolutely essential to achieve those purposes. He says the wage rate cannot be maintained unless industrial homework is prohibited, with the comparatively minor exceptions the order allows.8 His findings and indeed his express conclusions therefore necessarily determine that regulation, by measures short of prohibition, cannot accomplish the relevant purposes of the order and of the statute.9

[250] Petitioners do not dispute the Administrator’s findings of fact or that the evidence fully sustains them. Nor indeed do they question his conclusions in any respect except that he has no legal authority to make the prohibition.10 The petition for certiorari conceded, as does also the brief, that the prohibition was included solely because respondent found “he could not [otherwise] enforce the minimum wage rate as to the home workers employed in the industry.” The brief states further that petitioners, “during the entire course of the proceedings, . . . challenged only the statutory authority” of the respondent to include the prohibition.

In this sharply chiseled state of the issue, the accuracy of the Administrator’s findings and conclusions and the sufficiency of the evidence to sustain them must be taken [251] not only as true but as conceded, apart from the single question of authority to include the prohibition notwithstanding it is so buttressed in fact.11 The posture of the case therefore compels acceptance of the Administrator’s position that, without the prohibition, the wage rate cannot be maintained, and that circumvention and evasion cannot be prevented.

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

Gemsco, Inc. v. Walling, 324 U.S. 244, 65 S. Ct. 605, 89 L. Ed. 921, 1945 U.S. LEXIS 2702 (1945).

324 U.S. 244 (Gemsco, Inc. v. Walling) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Solvay Specialty Polymers, LLC v. Director, Division of Taxation
New Jersey Superior Court App Division, 2024
In re Brothers Publishing Co, L.L.C.
2014 Ohio 133 (Ohio Court of Appeals, 2014)
In Re Casaleggio
18 A.3d 1082 (New Jersey Superior Court App Division, 2011)
Sandoz, Inc. v. Leavitt
427 F. Supp. 2d 29 (District of Columbia, 2006)
Carpenter Technology Corp. v. Admiral Insurance
800 A.2d 54 (Supreme Court of New Jersey, 2002)
Koohi v. United States
976 F.2d 1328 (Ninth Circuit, 1992)
People v. Otto
831 P.2d 1178 (California Supreme Court, 1992)
In Re Eastern & Southern Districts Asbestos Litigation
772 F. Supp. 1380 (S.D. New York, 1991)
Construction Technology, Inc. v. Lockformer Co.
713 F. Supp. 93 (S.D. New York, 1989)
McLaughlin v. McGee Bros. Co., Inc.
681 F. Supp. 1117 (W.D. North Carolina, 1988)
United States v. Creekmore
648 F. Supp. 1369 (N.D. Alabama, 1986)
In Re Belco Vending, Inc.
67 B.R. 234 (D. Massachusetts, 1986)
United States v. Mesa
641 F. Supp. 796 (S.D. Florida, 1986)
Inmates of Unit 14 v. Rebideau
102 F.R.D. 122 (N.D. New York, 1984)