Gentile v. Holly Corp.

185 F. Supp. 230, 1960 U.S. Dist. LEXIS 5028
CourtDistrict Court, D. Connecticut
DecidedJuly 19, 1960
DocketCiv. No. 6638
StatusPublished
Cited by1 cases

This text of 185 F. Supp. 230 (Gentile v. Holly Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gentile v. Holly Corp., 185 F. Supp. 230, 1960 U.S. Dist. LEXIS 5028 (D. Conn. 1960).

Opinion

CLARK, Circuit Judge

(sitting as District Judge pursuant to statutory designation).

In this action plaintiff seeks recovery from his former employer, Holly Corporation, of overtime compensation under the Fair Labor Standards Act, 29 U.S.C. § 201 et seq., and also under the terms of an alleged oral agreement. Jurisdiction is based upon the federal statute, 28 U.S. C. § 1337, 29 U.S.C. § 216(b); further the parties have diverse citizenship, plaintiff being a resident of Connecticut, while defendant is a Delaware corporation.

Plaintiff was employed from October 1955 to March 1957 at defendant’s manufacturing plant located in Pine Meadow, Connecticut. The plant carried on operations both as the Pine Meadow Division of Holly Corporation and as Amcoin Corporation, a wholly owned subsidiary of Holly. During the period of plaintiff’s employment the plant was engaged principally in the production of the Amcoin urn, a commercial coffee urn, of which a major purchaser was the United States Army Quartermaster Corps. Defendant’s plant manager, Merrill W. Hill, initially offered plaintiff employment as a salesman; but this position became unavailable so that plaintiff was assigned to the stockroom at a wage rate of $1.50 an hour ($60 per week). In December 1955 he was given a new position on a salary basis of $115.38 per week or $6,000 per year. Thereafter plaintiff’s salary was increased in March 1956 to $125 per week or $6,500 per year, in October 1956 to $135 per week or $7,020 per year, and in December 1956 to $144.23 per week or $7,500 per year. These amounts were duly paid as the services were rendered; the present claim is for overtime compensation in the amount of $7,024.82, together with liquidated damages of like amount, attorney’s fees, and costs.

The Claim under the Fair Labor Standards Act

There is no dispute as to the fact that defendant was engaged in interstate commerce and was subject to the wage and hour provisions of the FLSA. It is claimed, however, that plaintiff was employed in an executive or administrative capacity and thus was exempt from the overtime provisions of the Act. In granting this exemption Congress has not defined executive or administrative status, but has delegated this task to the Administrator of the Wage and Hour Division of the Department of Labor. 29 U.S.C. § 213. The administrative regulations prescribe six requirements for the executive exemption and five requirements for the administrative exemption. 29 U.S.C. App. §§ 541.1, 541.2. But each section also contains a so-called “white-collar” proviso under which an employee “who is compensated on a salary basis at a rate of not less than $100 per week” is deemed to fulfill a number of these requirements.1 Since this action involves only the period of employment subsequent to December 1955, plaintiff’s compensation at all times exceeded the $100-per-week minimum.

The thus applicable regulation defines an executive employee as one “whose primary duty consists of the management of the enterprise in which he is employed or of a customarily recognized department or subdivision thereof, and includes the customary and regular direction of the work of two or more other employees therein * * 29 U.S.C. App. § 541.1. An administrative employee is defined as one “whose primary duty consists of the performance of office or nonmanual field work directly related to management policies or general business operations of his employer * * * which includes work requiring the exercise of discretion and independent judgment * * * ” 29 U.S.C.App. § 541.2.

The dispute between the parties primarily involves the factual nature of plaintiff’s duties, rather than the appli[232]*232cation of the above definitions. Plaintiff’s witnesses portrayed him as filling in where needed and performing such manual tasks as trucking parts, tools, and materials in order to keep the production workers supplied; inspecting, polishing, and crating urns; lending assistance on the assembly line; acting as an “errand boy” in transmitting orders and production schedules from Hill to the various departments; filling the soft-drink machine ; and picking up rags. It was variously estimated that he devoted 70 to 90 per cent of his time performing such manual endeavors. In contrast, defendant’s witnesses pictured plaintiff as the “plant superintendent” or “production manager” who, subject only to Hill, exercised authority over all phases of plant operations and who spent little, if any, time engaged in manual tasks.

While both these accounts appear exaggerated, the court concludes that defendant’s portrayal is the more nearly accurate. It is unlikely that plaintiff was receiving a salary of $6,000 to $7,500 a year for work which did not materially differ from that which he was performing as a stockroom employee at a wage of $3,120 a year. And there is little dispute that plaintiff’s position was designated, at least nominally, “plant superintendent” or “production manager.” Although there is vigorous dispute as to plaintiff’s authority over other employees, there is no evidence that he received orders from anyone else than Hill, who on cross-examination described plaintiff’s position as that of a “troubleshooting expediter.” The evidence as a whole strongly suggests that plaintiff’s primary duties were concerned with production scheduling and expediting. This included such assignments as scheduling and controlling production, organizing and apportioning work, and analyzing and remedying assembly problems. The position also required maintaining liaison among, and integrating the efforts of, the various departments, as well as maintaining contact with the New York sales office in matters relating to order scheduling. These activities, although performed under Hill’s general supervision, involved the exercise of discretion and independent judgment.

The court is also convinced that the' major portion of plaintiff’s time was expended in such nonmanual duties. The often chaotic conditions at the plant, caused by such factors as rehabilitation following flood damage, unfamiliarity of employees with the manufacture of the Amcoin urn, inadequate working capital, shortage of materials, and fluctuation in the number of employees from 30 to 80 or more persons, were reflected in frequent delays in filling orders. Under these circumstances all employees, including Hill and plaintiff, would, whenever possible, lend assistance where needed. But such manual tasks were merely collateral to plaintiff's primary duties and occupied considerably less than one-half of his time.

Thus the picture of his activities and position set forth by the defendant’s witnesses carries more conviction than that offered by the plaintiff and his witnesses; and there are various bits of corroborating evidence which likewise fit the defense contention and are incongruous with the contrary view. So Hill, plaintiff’s star witness, testified, “We had a desk set up for him in the office on the second floor with an amplifying telephone.” If plaintiff was a mere errand boy he would hardly have been given means of addressing the workers during their work.

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Bluebook (online)
185 F. Supp. 230, 1960 U.S. Dist. LEXIS 5028, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gentile-v-holly-corp-ctd-1960.