Jacksonville Paper Co. v. McComb

167 F.2d 448, 1948 U.S. App. LEXIS 3074
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 23, 1948
DocketNo. 11999
StatusPublished
Cited by15 cases

This text of 167 F.2d 448 (Jacksonville Paper Co. v. McComb) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jacksonville Paper Co. v. McComb, 167 F.2d 448, 1948 U.S. App. LEXIS 3074 (5th Cir. 1948).

Opinion

SIBLEY, Circuit Judge.

The appellants are individuals who conduct a manufacturing business and Jacksonville Paper Company, a corporation owned by tire individuals, which buys their products and other goods and sells them through a main office and warehouse at Jacksonville, Florida, and through thirteen branch offices and warehouses at other points in Florida, Georgia and Alabama. They at first considered that their several businesses were intrastate and that none of their hundreds of employees were under the Fair Labor Standards Act, 29 U.S.C.A. § 201, and following, and did not attempt to conform to it. The Administrator, thinking otherwise, sued for and obtained an injunctive decree on Aug. 29, 1941, which in general terms required observance of the Act by [449]*449the individuals, and by the Jacksonville Paper Company as to its employees at Jacksonville and at six of the branches but not as to the seven other branches where it was thought no interstate commerce was done. On appeal to this court the injunction as granted was held to be too broad in its terms, and erroneous in excluding the seven exempted branch offices because some of the employees, who were not named or identified, were apparently engaged in interstate commerce. Fleming, Admr., v. Jacksonville Paper Co., 5 Cir., 128 F.2d 395. On certiorari the Supreme Court amplified the transactions which would be a part of such commerce, and affirmed our remand of the cause to the District Court for further findings and decree. Walling v. Jacksonville Paper Co., 317 U.S. 564, 63 S.Ct. 332, 87 L. Ed. 460. No further evidence was taken nor findings made in the District Court, but on June 3, 1943, there was formulated an amended and modified decree which eliminated the general injunction against violating the Act in any way; and in three subdisions it enjoined the violation after the date of this decree of Sections 6, 7, 11(c) and 15 (a) (2), of the Act as to any employee, and as to certain kinds of shipments, but failed to find or forbid specifically any practice now in controversy. The Administrator on April 16, 1946, filed the present petition which, while not asserting any general failure to comply with the Act, asserted that as to several specific practices and as to thirteen named employees the above mentioned Sections of the Act, and therefore the injunctions, were: being violated, and stated the grounds on which the defendants claimed that what they were doing was not in violation of the Act; and it prayed that the defendants be adjudged in contempt and be required to pay the unpaid wages due the affected employees as a vindication of the Administrator’s right and a purge of the contempt.

After a full hearing the District Judge rendered an opinion in which he held that the practices attacked were not according to the Act, but the violations were not wilful, and none of them had been specifically considered and condemned by previous findings or decrees of the court, and that there was therefore no contempt of the injunctions in them; but that the practices ought to be stopped and to that end he would treat the proceeding as one to enlarge the injunction and prohibit the practices for the future. He decreed accordingly, enjoining one by one the practices he had found not in accord with the Act. The defendants have appealed, asserting error in condemning six of their practices. The Administrator has appealed, specifying as errors the refusal to adjudicate defendants in civil contempt and the refusal to require full compliance with the injunctions from their date.

We consider first the six assignments of appellants. Those relating to particular employees involve their exemption under Sect. 13(a), 29 U.S.C.A. § 213(a), as administrative and executive employees, or the question whether their work, mostly intrastate commerce, commingled to a substantial extent also interstate commerce. Their classification depends on questions of fact, and the conclusions of the District Court are not clearly erroneous. Two employees, in charge of what are contended to be separate departments, make a close case, but we do not think there is clear error as to them.

The corporation had a bonus plan used since May, 1942, whereby the directors at the end of the year had declared a bonus to some classes of employees based on a percentage of their total pay the preceding year, for which each was issued a note; but not payable at once and unconditionally, but in twelve instalments, one at the end of each month of the succeeding year if the employee were still working for the corporation. The bonus each year was not promised in advance but was voluntarily declared and apparently was no part of the regular wages legally due that year; and if immediately paid would have had no relation to the wages due the next year. But when it was declared payable as above, it seems to us that by continuing to work the employee could enforce payment each month, and that he was working for it as well as for his other wages, so that it became part of his regular compensation for each work week, and would have to be considered as such in computing any overtime. [450]*450Failure so to regard it was in violation of the Act.

The individual defendants had a practice of requiring the punching of a time clock and of not recording or compensating as time worked any hours not so shown by the clock, though the employee might claim he had worked but failed to punch the clock. During a year eleven such failures to punch are testified to have occurred among 110 to 140 employees. It does seem that an employer ought to have some protection along this line, and might be excused at least for inexact records so caused; but the Act requires that wages be paid for time actually worked, though the time is not proved in this particular way, and the courts cannot authorize the employer to make the clock the sole evidence of hours worked.

Turning to the Administrator’s cross-appeal, the District Court having found that the practices attacked by the contempt petition were in fact unlawful, and that some of them were going on when the injunction decrees were made, nevertheless held that none had been actually considered before or specifically condemned and forbidden by the court, and that all had been continued without any wilful purpose to evade the injunctions, and it refused to hold the defendants in contempt. We find that the original petition filed in 1940 was in broad terms and did not mention these practices, though in the hearing on it evidence was introduced about some of them. The judge then presiding, esteeming that the main question was whether the employees at the various places of business were in commerce at all, and the admissions of the defendants having shown they were, except at certain branch offices, he announced that he would enjoin as to all save these doubtful branches, and he cut the evidence short and confined the trial to whether interstate commerce was done at those branches. He made no findings of fact about any of the practices now in question, and in his conclusions of law he stated that it would be unfair to make any specific findings since he had cut the evidence off. His decree was for a general injunction in the terms of the Act as to all save the excepted branches, and as to the employees at these branches an injunction was altogether refused.

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Bluebook (online)
167 F.2d 448, 1948 U.S. App. LEXIS 3074, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacksonville-paper-co-v-mccomb-ca5-1948.