Haddad v. Beckerman Shoe Corp.

41 Pa. D. & C. 445, 1941 Pa. Dist. & Cnty. Dec. LEXIS 328
CourtPennsylvania Court of Common Pleas, Berks County
DecidedMay 5, 1941
Docketno. 181
StatusPublished

This text of 41 Pa. D. & C. 445 (Haddad v. Beckerman Shoe Corp.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Berks County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haddad v. Beckerman Shoe Corp., 41 Pa. D. & C. 445, 1941 Pa. Dist. & Cnty. Dec. LEXIS 328 (Pa. Super. Ct. 1941).

Opinion

Shanaman, J.,

This was assumpsit under the Fair Labor Standards Act of June 25,1938, 52 Stat. at L. 1069, to recover pay and penalties for overtime. Plaintiff recovered a verdict and defendant has taken rules for judgment n. o. v. and for new trial.

Defendant’s first reason for judgment n. o. v. is that a State court has no jurisdiction of a suit brought under this act, for the reason that it is a suit for a penalty. By section 256 of the Judicial Code of the United States, 28 U. S. C. §371, it is provided that the jurisdiction vested in the courts of the United States shall be exclusive of the courts of the several States as to “all suits for, penalties and forfeitures incurred under the laws of the United States”. Counsel argues that the double wages provided by the act bear no relation whatever to the damages sustained by the employe by his not receiving his overtime pay and must be construed as a penalty. Counsel cites Anderson v. Meacham, 62 Ga. App. 145, 8 S. E. (2nd) 459, in which it was held that a State court has no jurisdiction of such a suit brought under the act. Defendant’s contention has, however, been oppositely ruled in Hart v. Gregory, 218 N. C. 184, 10 S. E. (2nd) 644, Forsyth v. Central Foundry Co., 198 So. 706 (Ala.), and Tapp v. Price-Bass Co., 147 S. W.(2nd), 107 (Tenn.)., The latter two opinions contain extensive discussions and we think represent the weight of reason and of authority...

[447]*447We point out that section 16(a) of the Fair Labor Standards Act of June 25,1938, 52 Stat. 1069,29 U. S. C. §216, imposes criminal penalties, but makes no disposition of the jurisdiction, since the Judicial Code, 28 U. S. C. §371 (Judicial Code of March 3, 1911, c. 231, §256, 36 Stat. at L. 1160), vests exclusive jurisdiction of Federal offenses in the Federal courts. Section 17 of the Fair Labor Standards Act, 29 U. S. C. §217, vests jurisdiction of actions to restrain violations in the Federal courts. Then in section 216(6), creating the right of action to recover wages,' Congress, after establishing the liability of the employer to the employe, in the following language, “Any employer who violates the provisions of section 206 or section 207 of this chapter shall be liable to the employee or employees affected in the amount of their unpaid minimum wages, or their unpaid overtime compensation, as the case may be, and in an additional equal amount as liquidated damages”, goe.s on to define the forum where the litigant shall recover his wages, as follows: “Action to recover such liability may be maintained in any court of competent jurisdiction by any one or more employees for and in behalf of himself or themselves and other employees similarly situated . . : 29 U. S. C. §216 (b); Act of June 25, 1938, c. 676, sec. 16, 52 Stat. at L. 1069.

Essentially, the action is for wages. Such suits are often for small amounts. The Federal courts are often at a distance from the plaintiff, while the State courts may be more easily accessible. State courts of common pleas are the customary forum of suits to recover wages. It seems to us that “any court of competent jurisdiction” is language perfectly apt to vest jurisdiction in State as well as Federal courts and that such was the likely intent of Congress. The heading of section 216 (6) is “Penalties; civil and criminal liability”. Defendant seeks to draw an inference from the word “penalties”. Surely, however, the right to sue for overtime pay which is created immediately after is not a penalty. It is a civil liability, as [448]*448is the right to recover “an additional equal amount as liquidated damages”. It is true that in some cases the double pay may exceed the actual damage to the plaintiff. It is equally true that in others it may fall short of the damages suffered through the necessity of suing and undergoing the expense and trouble and loss of time incidental to suit. In any case, Congress has, in our opinion, made its intent clear by stating that the double pay shall be considered and recovered as liquidated damages.

“Whatever its technical nature, Congress by giving it the express status of ‘liquidated damages’ manifested a purpose to exclude it from the operation of the statute (28 U. S. C., §371) which applies to suits for penalties”: Tapp v. Price-Bass Co., supra, p. 108. Defendant’s first point must therefore be overruled.

Defendant’s next contention is that the law does not apply to a workman employed at a weekly wage. Congress, after providing a minimum hourly wage (29 U. S. C. §206) goes on in section 207 to provide maximum hours in a work week, “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”. It is argued that the Wage and Hours Administrator’s Regulations as follows, to wit: “. . . for a weekly paid employe, the regular rate of pay is obtained by dividing the weekly wage (including production bonus if any) by the regular (agreed or customary) number of hours worked during that week” (Regulation on Records, sec. 516.4, Interpretation Bulletin no. 4, October 21,1938); finds no sufficient support in the act and is in violation thereof. The nub of defendant’s contention is that, since the act says that the employe shall be paid at the rate of one and one-half times the “regular” rate at which he is employed, it must necessarily apply only to persons paid by the hour, since the person paid by the week has no regular hourly rate. He may work in some weeks more hours than in others, therefore his hourly rate would differ each [449]*449week if calculated under the regulation. We do not think the word “regular” must necessarily and in all cases mean “unvarying”. “Regular” means, in the first place, in accordance with a regula or rule. It does not necessarily imply an unvarying sameness. It may mean normal, agreeable to established, customary forms. The ripples on the seashore are controlled and regulated by the law which permits of an infinite variety. We think a fair interpretation of the word as used is that it means basic or actual hourly pay. Defendant cites Reeves v. Howard County Refining Co., 33 Fed. Supp. 90, decided by District Judge Davidson in the District Court of Texas. After a careful reading of that decision we are unable to conclude that it supports defendant’s conclusion. It would seem that the opposite conclusion could be drawn from the McClinton and Fuqua claims. The administrator’s rule, adopted and applied in the present case, is entitled to great weight since it is a “ ‘contemporaneous construction of a statute by the men charged with the responsibility of setting its machinery in motion, of making the parts work efficiently and smoothly while they are yet untried and new’ ”: United States et al. v. American Trucking Assns., Inc., et al., 310 U. S. 534, 549 (60 S. Ct. 1059; 84 L. Ed. 1345); Norwegian Nitrogen Products Co. v.

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Related

Norwegian Nitrogen Products Co. v. United States
288 U.S. 294 (Supreme Court, 1933)
United States v. American Trucking Associations
310 U.S. 534 (Supreme Court, 1940)
Forsyth v. Central Foundry Co.
198 So. 706 (Supreme Court of Alabama, 1940)
Anderson v. Meacham
8 S.E.2d 459 (Court of Appeals of Georgia, 1940)
Emerson v. Mary Lincoln Candies, Inc.
173 Misc. 531 (New York Supreme Court, 1940)
Emerson v. Mary Lincoln Candies, Inc.
174 Misc. 353 (New York Supreme Court, 1940)
Surface v. Bentz
77 A. 922 (Supreme Court of Pennsylvania, 1910)
Hart v. Gregory
218 N.C. 184 (Supreme Court of North Carolina, 1940)

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Bluebook (online)
41 Pa. D. & C. 445, 1941 Pa. Dist. & Cnty. Dec. LEXIS 328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haddad-v-beckerman-shoe-corp-pactcomplberks-1941.