Graves v. Armstrong Creamery Co.

118 P.2d 613, 154 Kan. 365, 1941 Kan. LEXIS 69
CourtSupreme Court of Kansas
DecidedNovember 8, 1941
DocketNo. 35,275
StatusPublished
Cited by12 cases

This text of 118 P.2d 613 (Graves v. Armstrong Creamery Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Graves v. Armstrong Creamery Co., 118 P.2d 613, 154 Kan. 365, 1941 Kan. LEXIS 69 (kan 1941).

Opinion

The opinion of the court was delivered by

Hoch, J.:

This appeal relates to overtime pay due an employee under the federal fair labor standards act of 1938 (often called the “wages and hours act”), hereinafter referred to as the act. The employer agrees that overtime pay was due the employee. The only issue is the method of computing it. The employee had a fixed monthly salary or wage covering no fixed or agreed number of hours of work, and the number of hours he worked fluctuated from week to week.

Appellant, the Armstrong Creamery Company, manufactures butter and perhaps other products. Appellee, Howard Graves, Jr., was employed by the creamery company from October 7,1939, to August 31, 1940, at a wage or salary of $95 per month, paid bimonthly. The federal administrator of the act ruled that the employer’s business was interstate in character'and therefore subject to the act. After his employment had terminated the employee brought action [366]*366in the city court of Wichita to collect pay for “overtime” work covering the period from October 1, 1939, to August 10, 1940. The employer offered to confess judgment, but there was disagreement over the method of computation. From an adverse judgment in the city court the employer appealed to the district court, where, again, the only issue was the method of computation. The district court adopted the method supported by the employee and gave judgment against the employer for $267.78 for overtime pay, for a like amount for “liquidated damages” provided under the act, and for $150 attorney's fees, making a total judgment of $685.56. From that judgment the appeal is taken.

The fair labor standards act went into effect on June 25,1938. Its primary purpose, stated in the act, was to correct, as to industries engaged in interstate commerce, “labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and general well being of workers.” By the terms of the act its administration was placed in a wage and hour division created in the United States Department of Labor and under an administrator to be appointed by the president by and with the advice and consent of the senate and to be paid a salary of $10,000 a year. The minimum wage provisions of the act, as such, are not here involved. We need to note specifically only the provisions for maximum hours and for overtime pay.

It is not unlawful under the act to employ workers for more than the number of hours per week specified in the act. The act only prohibits such overtime employment “unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed” (italics ours). (29 U. S. C. A., §207.) The “hours above specified” are forty-four hours per week during the first year following enactment of the act, forty-two hours per week during the second year, and forty hours thereafter. While the period of employment here involved covered portions of the first and second year, we can simplify the issue without otherwise affecting it by treating the whole period as subject to the forty-two hour provision.

The act further provides that any employer who violates the provisions of section 207, supra, shall not only be liable to the employee for the overtime pay, but also for a like amount as “liquidated damages,” and also for a reasonable attorney’s fee and for costs of [367]*367the action. The action to enforce such liability may be brought “in any court of competent jurisdiction.” (29 U. S. C. A., § 216.)

A few further statements will help clarify the situation. Appellant did not contest the contention that it was engaged in interstate commerce nor that appellee’s work brought him within the act. Appellant did not deny that the appellee worked overtime as defined in the act or that he is entitled to overtime pay therefor. Nor does appellant contend that it is not liable for Ifliquidated damages” in an amount equal to the overtime pay properly computed. It is not charged that appellant willfully violated the act. In the trial court appellant “offered to confess judgment” in the amount of $139.22 and left the matter of attorney’s fees to be allowed the employee “for the consideration of the court.”

Appellee was employed at a fixed salary of $95 a month. There was no agreement for any specific number of hours per week, and the number of hours actually worked fluctuated from week to week as the circumstances each week might require. There is no dispute as to the correct method of determining the regular weekly wage. It was arrived at by multiplying the monthly wage of $95 by 12 and dividing by 52, which gives $21.92 as the regular weekly wage.

Appellee contends that in order to determine the “regular rate” per hour “at which he is employed” (section 207, supra) the weekly wage of $21.92 should be divided by 42, with a resultant regular hourly wage rate of $.5219. This amount would then be multiplied by one and one-half to arrive at the overtime rate of pay for the hours worked “in excess of the hours above specified” (section 207). Appellant contends that the correct way to determine the regular hourly rate of pay in any particular week is to divide the weekly wage of $21.92 by the number of hours actually worked during that week. The rate thus arrived at would then be multiplied by one and one-half to determine the overtime rate for that week. For instance, if in a certain week the employee worked 46 hours, his regular hourly rate of pay for that week would be $21,92 divided by 46, or $.4765. The overtime hourly rate, accordingly, for the four overtime hours that week would be one and one-half times $.4765, or $. 7147 per hour.

At this point it should be made clear that there is no contention here that the employer has any right to require the employee to work a longer number of hours in any work week than reasonably contemplated within the terms of his employment. The appellee [368]*368does not complain about the number of hours worked. Nor is any question of minimum wages involved. And in this whole discussion we are assuming, of course — as the administrator’s bulletin hereinafter referred to must assume — that the number of hours used in making the computation falls within the reasonable limits of the employment. Any argument which assumes a number of hours per week which is outside the reasonable limits of the employment or which results in violation of minimum wage provisions and then poses extreme illustrations based upon such false assumption is fanciful and without persuasion.

The federal administrator of the act, clothed with broad powers of administration, has issued various bulletins for the information of both employees and employers. These interpretative and administrative bulletins have covered all phases of the act and include the matter of overtime pay and the correct method of computing it for the many different kinds of employment. The method adopted and promulgated by the administrator for employment of the nature here involved is the one contended for by appellant. The trial court, however, declined to follow the administrator’s method and apparently the principal argument against it which impressed the court was that if the hourly rate in any one week is determined for that week by dividing the weekly rate by the number of hours worked during the week the result would be that the more hours an employee works in any particular week the less his regular hourly rate of pay will be for that week.

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

Related

McTaggart v. Liberty Mutual Insurance
983 P.2d 853 (Supreme Court of Kansas, 1999)
Bill George Chrysler-Plymouth, Inc. v. Carlton
532 P.2d 1351 (Supreme Court of Kansas, 1975)
Amoco Production Co. v. Armold, Director of Taxation
518 P.2d 453 (Supreme Court of Kansas, 1974)
Tillotson v. Abbott
472 P.2d 240 (Supreme Court of Kansas, 1970)
Class I Rail Carriers v. State Corporation Commission
380 P.2d 396 (Supreme Court of Kansas, 1963)
Peña v. Eastern Sugar Associates
75 P.R. 288 (Supreme Court of Puerto Rico, 1953)
Hinds v. Fine
176 P.2d 847 (Supreme Court of Kansas, 1947)
Overnight Motor Transportation Co. v. Missel
316 U.S. 572 (Supreme Court, 1942)
Missel v. Overnight Motor Transp. Co.
126 F.2d 98 (Fourth Circuit, 1942)

Cite This Page — Counsel Stack

Bluebook (online)
118 P.2d 613, 154 Kan. 365, 1941 Kan. LEXIS 69, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graves-v-armstrong-creamery-co-kan-1941.