Goldberg v. Cornell

199 F. Supp. 314, 1961 U.S. Dist. LEXIS 4002
CourtDistrict Court, W.D. Oklahoma
DecidedNovember 15, 1961
DocketCiv. Nos. 9003-9005
StatusPublished
Cited by2 cases

This text of 199 F. Supp. 314 (Goldberg v. Cornell) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goldberg v. Cornell, 199 F. Supp. 314, 1961 U.S. Dist. LEXIS 4002 (W.D. Okla. 1961).

Opinion

RIZLEY, District Judge.

These three cases were brought by the Secretary of Labor, United States Department of Labor, to enjoin the respective defendants from violating- the provisions of Section 15(a) (2) of the Fair Labor Standards Act, 29 U.S.C.A. § 215 (a) (2). The eases were joined for trial as a matter of convenience as they arose out of similar fact situations and involve the same type violation. Jurisdiction over this action is conferred upon the court by Section 17 of the Fair Labor Standards Act, 29 U.S.C.A. § 217, hereinafter referred to as the “Act.”

The defendants are contractors who contracted with the Soil Conservation Service of the United States Department of Agriculture to build the “earthen dams” or “water retarding structures,” commonly referred to as farm ponds, in question here. They were furnished with certain specifications and regulations from which to base their bid, the job going to the low bidder. The specifications included the size and location of [315]*315the dam, the contract under which they were to work, and the regulations involved. ■ It is significant that there was no reference made to the Act, and the testimony revealed that in no case did the contractor-defendants base their estimated labor costs on a scale paying wages commensurate with the requirements of that Act. There was, however, strict compliance with the Davis-Bacon Act, 40 U.S.C.A. § 276a et seq., better known as the “eight-hour law,” and with the wage scale promulgated by the Secretary of Labor, as required in the contract.

The Government points out at great length in its brief that the structures in question fall within the category of flood prevention measures and provide runoff control for the Washita River Watershed. It is urged that these structures, by providing temporary storage of flood water from the major portion of the critical flood producing areas of the watershed will reduce peak discharges below the structures and materially reduce consequent flood water damage. The Washita River drains into the Red River which in turn eventually drains into the Missis-, sippi; thus the Government contends that each dam built is designed to improve “the functioning of” or to be a “part, of” an existing facility of commerce.

The Government further contends that while each of these structures in and of itself will ha^e but an infinitesimal effect upon flood control that the effect of the plan in its entirety is great. Insofar as the whole plan is concerned, we must look at the overall watershed program, of which each dam is an integral part, and its effect on flood control, navigation, and commerce, itself.

■It is the defendants’ contention that each • ease, construing the term “commerce” in light of the Act, must hinge on its own facts and that in view of the nature of the work, the location of the project, and the remoteness from any facility or instrumentality of commerce, it is clear when tested by practical considerations that the work of the defendants’ employees cannot be said to be “directly and vitally related” to interstate commerce.

The statute involved here establishes a fair minimum wage and the maximum hours that a person can work' at that wage. Section 206(a) establishes the minimum wage:

“Every employer shall pay to each of his employees who is engaged in commerce or in the production of goods for commerce wages at the following rates * * * ”

Section 207(a) is concerned with maximum hours:

“Except as otherwise provided in this section, no employer shall employ any of his employees who is engaged in commerce or in the production of goods for commerce for a workweek longer than forty hours, unless such employee receives compensation for his employment in excess of the hours above specified át a rate not less than one and one-half times the regular rate at which, he is employed.”

The Act was passed in 1938 and was declared constitutional and within the commerce power of Congress in the case of United States .v. Darby, 312 U.S. 100, 657, 61 S.Ct. 451, 85 L.Ed. 609 (1941). Since that time there has been '¡a. great deal of litigation1 involving the Act. Most of it focuses on the question of whether or not a certain job, or the work product of that job, falls within the definition of “commerce” so as to require the compliance with the minimum wage and/or maximum hours provision of the Act. In order to properly approach the question at hand, it would be wise to go into the history of the interpretation of the Act. After it was passed, there was a rash of decisions which extended its coverage far beyond the anticipation of [316]*316Congress. For example, it was held that employees in a local store who sold fertilizer to local farmers for use on land that would produce goods sent out of the state were engaged in commerce.2 Employees of a window-cleaning company, whose activities were wholly within the state, but whose customers engaged in interstate commerce were covered.3 Employees of a local sawmill operator who produced and sold mine props within the state to interstate coal companies for coal mining were brought under the statute by judicial interpretation.4

Congress was disturbed at the extreme position taken in these and other cases and saw fit to confine and delimit the scope of the Act when they amended it in 1949. The intent of Congress was to keep the coverage of the Act within the logical and reasonable bounds of “commerce.” The committee reporting on the amendment stated that: 5

. “The conference agreement inserts the words, ‘closely related,’ before the words ‘process or occupation’ and substitutes the words ‘directly essential’, for the words ‘necessary’ in the clause, so that the clause as amended refers to an employee employed ‘in any closely related process or occupation directly essential to the production of goods.’ ”

Senator Taft, a member of the committee, submitted his own statement of the intent of the committee in this graphic language:6

“Likewise the conferees agreed to a redefinition of the term ‘produced’ intending to prevent extension of coverage to such operations as ‘window cleaning’ and ‘grass cutting’ on the far-fetched theory that such operations are necessary to the production of goods. * * * It was understood by both the House and the Senate conferees, however, that the definition as finally agreed to was intended to have a substantial limiting effect upon the coverage of the Act as heretofore interpreted by both the administrator and the courts.”

With this background in mind, we must, answer the question of whether or not the construction of these dams is “commerce” as defined under the Act.

The question of whether or not these contractors were involved in commerce must be answered on two counts. First it must be determined whether or not. they were engaged “in commerce,” and secondly, whether or not they were producing goods for commerce, or “were in any closely related process or occupation directly essential to the production thereof.”

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Bluebook (online)
199 F. Supp. 314, 1961 U.S. Dist. LEXIS 4002, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldberg-v-cornell-okwd-1961.