Marshall v. Aksland

631 F.2d 600, 24 Wage & Hour Cas. (BNA) 1061
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 28, 1980
DocketNos. 78-1716, 78-2299
StatusPublished
Cited by6 cases

This text of 631 F.2d 600 (Marshall v. Aksland) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marshall v. Aksland, 631 F.2d 600, 24 Wage & Hour Cas. (BNA) 1061 (9th Cir. 1980).

Opinion

SNEED, Circuit Judge:

The principal issue in this case is whether the trucking business of Aksland, appellee and cross-appellant, is exempt from the overtime compensation provisions of the Fair Labor Standards Act (FLSA), 29 U.S.C. §§ 201 etseq.

The Secretary of Labor initiated this suit in 1973 to enjoin Aksland from violating 29 U.S.C. § 207 by failing to pay appropriate overtime compensation and to restrain the withholding of such compensation already due. Aksland defended on the ground that his employees were exempt from those provisions by reason of 29 U.S.C. § 213(b)(1), the so-called Motor Carriers Act exemption. The period of time covered by the Secretary’s suit is January 11, 1971 to March 11, 1975.

The district court entered judgment for Aksland and in its conclusions of law held that his trucking business was within the Motor Carriers Act exemption. The Secretary appealed and we affirm. Because of this we need not consider Aksland’s cross-appeal which was from an order denying his motion to reopen the record. Under these circumstances, a reopening of the record would serve no useful purpose.

Subsequent to oral argujnent, the Secretary of Transportation, in response to a request by the court, filed an amicus curiae brief in which he supported the result reached by the trial court. The Secretary of Labor, with the court’s permission, filed a supplemental brief in response to the ami-cus curiae brief of the Secretary of Transportation.

I.

FACTS

A summary of the facts as found by the district court is as follows. Aksland, who entered the trucking business in 1951, began his transportation in interstate commerce in 1960. Between 1960 and the fall of 1963, he hauled bakery goods from California to Reno and Carson City, Nevada. In this period, Aksland employed approximately twelve truck drivers and between fifteen and twenty percent of his revenue was derived from the interstate transportation of bakery goods. This interstate business was lost in November 1963 when the bakery shippers withdrew their business because of a collective bargaining agreement with a union. Aksland’s bankruptcy resulted.

In 1965 Aksland revived his trucking business and without success solicited interstate business from the bakery industry . Nonetheless his vehicles were maintained in accordance with I.C.C. regulations and his I.C.C. rights were kept current. His solicitations bore some fruit in late 1969, however; two bakeries agreed to ship their products in his trucks between California and Nevada. For five weeks during Janu[602]*602ary and February 1970, Aksland transported bakery products between California and Nevada. Once more labor pressure was exerted ánd, after five weeks, the bakeries withdrew their business. Thereafter, Aks-land transported no goods in interstate commerce until 1974, at which time he transported liquid food supplement and cattle feed from Oregon and Idaho pursuant to contract.

Aksland from 1965 to the time of trial solicited interstate business by personal contacts and advertisements. He filed tariffs for interstate bakery hauling with the I.C.C. His drivers conformed to the Motor Carrier Safety Regulations, maintained Department of Transportation forms, and shared interstate hauls on a rotating basis. In short, as the district court found, “From 1965 to the time of trial, Aksland maintained his I.C.C. authority and held himself available for interstate business.”

II.

THE EXEMPTION

The exemption from overtime compensation is as follows:

The provision of section 207 of this title shall not apply with respect to- (1) any employee with respect to whom the Secretary of Transportation has power to establish qualifications and maximum hours of service pursuant to the provisions of section 304 of title 49; 29 U.S.C. § 213(b)(1).

The “power” of the Secretary of Transportation set forth in subsection 304(a) of Title 49 to which the exemption refers is as follows:

It shall be the duty of the [Interstate Commerce] Commission-
(1) To regulate common carriers by motor vehicles as provided in this chapter, and to that end the Commission may establish reasonable requirements with respect to continuous and adequate service, transportation of baggage and express, uniform systems of accounting, records and reports, preservation of records, qualifications and maximum hours of service of employees, and safety of operation and equipment.

Although section 304(a) vests power in the Interstate Commerce Commission, 49 U.S.C. § 1655(e) transfers to the Secretary of Transportation all powers and duties of the Commission relating to qualifications and maximum hours of employees and safety of operations and equipment under section 304.

The Secretary of Transportation’s power, however, is limited to those who are “common carriers by motor vehicle.” Such a carrier is defined as follows:

any person which holds itself out to the general public to engage in the transportation by motor vehicle in interstate or foreign commerce of passengers or property or any class or classes thereof for compensation, whether over regular or irregular routes . . . (Emphasis added) 49 U.S.C. § 303(a)(14).

By contrast, a “contract carrier by motor vehicle” is defined as a “person which engages in transportation” pursuant to “continuing contracts” with one or more persons. 49 U.S.C. § 303(a)(15).

On appeal, the Secretary of Labor initially argued that a person who held himself out but did not receive or perform business in interstate transportation was not entitled to the exemption. The Secretary’s approach was to focus upon the type of commerce actually conducted. Only interstate commerce was subject to regulation by the Secretary of Transportation and entitled to exemption from FLSA. Intrastate commerce, on the other hand, was governed by the states with respect to fixing the maximum hours for safety purposes “leaving to FLSA to carry out its social and economic purposes as the sole exercise of the Federal power.” Appellant’s Brief, p. 8.

This approach required that the Secretary of Labor attack frontally both Brennan v. Schwerman Trucking Co., 540 F.2d 1200 (4th Cir. 1976), and Starrett v. Bruce, 391 F.2d 320 (10th Cir. 1968), both of which held, as Schwerman Trucking Co. put it, that “...

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Bluebook (online)
631 F.2d 600, 24 Wage & Hour Cas. (BNA) 1061, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marshall-v-aksland-ca9-1980.