George P. Shultz, Secretary of Labor, United States Department of Labor v. Arthur Kelley, D/B/A Arthur Kelley Stockyards

431 F.2d 1364, 1970 U.S. App. LEXIS 7150, 19 Wage & Hour Cas. (BNA) 699
Court of Appeals for the Tenth Circuit·Decided September 30, 1970·No. 720-69·Published·Cited by 2 cases

Opinion

ORIE L. PHILLIPS, Circuit Judge.

George P. Shultz, in his capacity as Secretary of Labor, brought this action against Arthur Kelley, d/b/a “Arthur Kelley Stock Yards,” seeking a decree enjoining Kelley from violating §§ 15(a) (2) and 15(a) (5) of the Fair Labor Standards Act, as amended, 1 and from withholding payment of minimum wages and overtime compensation found by the court to be due from Kelley to his employees under that Act. From an adverse injunctive decree, Kelley has appealed.

Kelley is engaged in buying and selling hogs. He purchases hogs mainly at stockyards located in Nebraska, Iowa, Minnesota and Missouri. He owns a private stockyard adjacent to Muskogee, Oklahoma. He transports in his own trucks the hogs he purchases to his stockyard, where he unloads them and holds them from one to three days. While in his stockyard, the hogs are fed and watered and provided with water holes, where they can wallow and keep cool. He sells the hogs to meat processors in Oklahoma and Texas. He transports the hogs in his own trucks from his stockyard to the place of delivery to the purchaser. Each of the truck trailers has an upper and a lower deck. Each deck has five separate compartments.

From July 1967 to August 20, 1968, Kelley employed John Risenhoover to work for him at his stockyard. Risen-hoover’s duties were to unload the hogs from the trucks when they arrived at the stockyard and place the hogs unloaded from each truck into a separate pen, to feed and water the hogs, and to keep ample water in the water holes for the hogs to wallow in and keep cool, to clean the pens and keep the fences in proper repair, to repair the trailers and trailer compartments so they would be kept hog tight, and to assist in making mechanical repairs on the truck tractors. Such repairs on the trailers and the mechanical labor on the truck tractors were essential to keep the trailers and truck tractors in safe operating condition.

It was also Risenhoover’s duty to load the trailers. The loading procedure was as follows: Kelley would separate and drive six hogs from their pen to a loading pen located at the lower end of the ramp. Risenhoover knew the compartment to which the first six hogs driven into the loading pen by Kelley were to be' placed, and he knew into which of the remaining nine compartments each load of six hogs driven into the loading pen by Kelley were to be placed on the trailer. When Risen-hoover had moved a lot of six hogs from *1366 the loading pen and had started to load them, Kelley would separate another lot of six hogs and drive them into the loading pen.

It is true that in loading the hogs Risenhoover worked under Kelley’s supervision, but as Kelley testified, it was Risenhoover’s job to load the hogs into the proper compartments and see that the doors thereof were securely closed, so the hogs would be kept confined therein.

Balancing of the load and keeping it in balance while being transported was essential to the safe operation of the trucks.

Risenhoover testified that the trucks transporting hogs purchased by Kelley to his stockyard usually arrived in the morning, but that they could and did arrive at all hours of the day, and that he would be notified and was required to be there and meet them and unload the hogs; and that in cool weather the outgoing trucks were loaded and left between 4 p. m. and 9 p. m.; that in hot weather they were loaded and left between 9 p. m. and 12 midnight.

Kelley paid Risenhoover $75 per week for his services. He paid his truck drivers by the trip. He did not keep any records of hours worked, and his records of payments made to employees were mainly copies of Social Security tax reports.

Risenhoover testified that he reported for work between 7:30 and 8 a. m. and completed his work at from 5:30 p. m. to 12 midnight; that he had an hour off for lunch and an hour off for dinner, and that he worked seven days per week. He estimated that he worked from 56 to 72 hours per week.

William H. Smith, Jr., an investigator for the Wage and Hour and Public Contracts Division of the United States Department of Labor, testified that he investigated Kelley’s business operations with respect to violations of the Fair Labor Standards Act. He stated that Kelley furnished him with copies of the Social Security tax reports on the earnings of Risenhoover in 1967. He further stated that from information he obtained from his investigation, he estimated that Risenhoover worked for Kelley 58 hours per week from the beginning of his employment in 1967 until February 1, 1968, during which time the minimum wage was $1.40 per hour; that Risenhoover received $75 per week and was entitled to $81.20 per week, which left a balance due him of $204.60; that he estimated that from February 1, 1968, to August 16, 1968, when the minimum wage was $1.60 per hour, Risen-hoover worked for Kelley 58 hours per week; that he received $75 per week and was entitled to $92.80 per week, which left a balance due him of $516.20.

Smith further stated that from the information he obtained, he concluded that during such periods Risenhoover was doing work essential to the operation of the truck tractors and trailers, which he estimated consumed one-third of each workweek, and that while he was doing such work he was exempt from the overtime provisions of § 13 (b) (1) of the Fair Labor Standards Act, but that he was entitled to overtime compensation during the remaining two-thirds of each workweek, while he was employed in nonexempt work, which amounted to $665.20.

The court found that Risenhoover was entitled to recover additional compensation under the applicable minimum wage provisions of the Fair Labor Standards Act during the period from July 1967 to February 1, 1968, in the amount of $204.60, and for the period from February 1, 1968, to August 16, 1968, in the amount of $516.20, and for the period from August 17 to August 20, 1968, for which he was not paid any compensation, he was entitled to $52.

The court made findings of fact and conclusions of law, and after a motion for a new trial, made amended findings of fact and conclusions of law.

In Amended Finding III, the court found that:

“ * * * Risenhoover’s duties consisted of helping to unload the hogs *1367 coming into the yards on defendant’s trucks from points outside Oklahoma, feeding and watering such hogs, cleaning the yards and pens, repairing the fences of the stock yards, repairing the trailers used to haul the hogs, performing some minor repairs to the trucks used to haul the hogs, and helping to load the hogs to be hauled on to points in Oklahoma and Texas. Defendant himself supervised and directed the loading and unloading of the hogs and Risenhoover helped him, carrying out Kelley’s orders and instructions.”

The finding last quoted, insofar as it deals with loading and unloading the hogs, is contrary to the testimony of Kelley and Risenhoover. Kelley testified, “I keep a man there (referring to the stockyard) generally that will unload the hogs.” In response to the question, “Did Mr. Risenhoover help unload the hogs?” Kelley answered, “He was supposed to unload them. That was his job.”

Referring to Risenhoover’s tour of duty, Kelley testified:

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George P. Shultz, Secretary of Labor, United States Department of Labor v. Arthur Kelley, D/B/A Arthur Kelley Stockyards, 431 F.2d 1364, 1970 U.S. App. LEXIS 7150, 19 Wage & Hour Cas. (BNA) 699 (10th Cir. 1970).

431 F.2d 1364 (George P. Shultz, Secretary of Labor, United States Department of Labor v. Arthur Kelley, D/B/A Arthur Kelley Stockyards) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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