Schumann v. Ross

199 F.2d 219, 1952 U.S. App. LEXIS 3781, 22 Lab. Cas. (CCH) 67,189
CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 16, 1952
Docket10574_1
StatusPublished
Cited by3 cases

This text of 199 F.2d 219 (Schumann v. Ross) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schumann v. Ross, 199 F.2d 219, 1952 U.S. App. LEXIS 3781, 22 Lab. Cas. (CCH) 67,189 (7th Cir. 1952).

Opinion

SWAIM, Circuit Judge.

This is an appeal from a judgment denying the plaintiff, A. H. Schumann, overtime compensation, damages and attorneys’ fees which the plaintiff claimed under § 16(b) of the Fair Labor Standards Act, 29 U.S.C.A. § 216(b), because of the alleged failure of the defendants to pay him for overtime pursuant to § 7(a) (3) of the Act, 29 U.S.C.A. § 207(a) (3). This latter section of the Act prohibited the employer from employing any employee, engaged in the production of goods for commerce, for more than 40 hours per week without paying such employee at least time-and-one-half for the hours worked in excess of 40 hours. Section 16(b) of the Act made an employer violating § 7(a) (3) of the Act liable to the employee for unpaid overtime compensation, for an equal amount as liquidated damages and for a reasonable fee for the employee’s attorney. 29-U.S.C.A. § 216(b).

The 'defendants alleged that during the entire period of his employment the plaintiff was an employee exempt from the requirements of § 7 of the, Act, within the meaning of § 13(a) (1) of the Act, 29 U.S.C.A. § 213(a) (1), in that the plaintiff was employed in a “bona fide executive” capacity as that term was defined by the Administrator of the Wage arid Hour Division of the Department of Labor, pursuant to the express authorization to the Administrator in § 13 (a)(1).

The individual defendants, as partners, were engaged in the business of packaging and selling olives and other food products under the firm name of Kitchen-Ease Food Products Company from September 29,1947 to December 31, 1947. The business was then taken over and operated by the corporate defendant, Kitchen-Ease Food Products Company, Inc., the corporate defendant continuing the operation of the business during the remainder of the time here in question.

The plaintiff was employed on September 29, 1947, as plant superintendent. He worked under this title until some time in January 1949 when he was elected president of the corporation, in which office he served until he left the company in May 1949. The *221 plaintiff contended that his election to the office of president did not result in any change in the duties assigned to him in his employment. He contended that during the entire period of his employment he worked 80 hours per week, and that much of his work was manual labor which he performed in the plant where he worked, with the nonexempt employees, at work of the same type which the nonexempt employees were performing.

The Administrator defined an “employee employed in a bona fide executive * * * capacity”, 29 Code Federal Regulations, Ch. 5, Pt. 541; 29 U.S.CA.Appendix, § 541.1, as meaning any employee—

“(A) whose primary duty consists of the management of the establishment in which he is employed or of a customarily recognized department or subdivision thereof, and
“(B) who customarily and regularly directs the work of other employees therein, and
“(C) who has the authority to hire or fire other employees or whose suggestions and recommendations as to the hiring or firing and as to the advancement and promotion or any other change of status of other employees will he given particular weight, and
“(D) who customarily and regularly exercises discretionary powers, and
“(E) who is compensated for his services on a salary basis at not less than $30 per week (exclusive of board, lodging, or other facilities), and
“(F) whose hours of work of the same nature as that performed by nonexempt employees do not exceed 20 percent of the number of hours worked in the workweek by the nonexempt employees under his direction; * *

Since these six requirements are in the conjunctive, the employee must meet each of the requirements before he can be considered as exempt from the provisions of § 207 of the Act. George Lawley & Son Corporation v. South, 1 Cir., 140 F.2d 439, 151 A.L.R. 1081. There is no real question but that the plaintiff here met the first five of these requirements. It is admitted that his primary duty was the management of the production department of the defendants’ plant. The plaintiff did continuously and regularly direct the work of the other employees in that department. He had the authority to hire and fire other employees iffi that department and such action by him wat. ordinarily recognized. He did customarily and regularly exercise discretion in planning and directing the work of the other employees in the department. His compensation was at no time less than three times the required $30 per week. The plaintiff now contends, however, that his “hours of work of the same nature as that performed by the nonexempt employees” far exceeded “20 percent of the number of hours worked in the workweek by the nonexempt employees under his direction.”

The plaintiff testified that in arranging the work for the employees in the plant it was necessary for him to get the supplies ready and that this sometimes included moving barrels of olives about the plant and helping to fill orders. Plaintiff says that he sometimes started fires in the furnace, sometimes swept and cleaned the floor, and did heavy work for the plant employees under his direction when no other man was available. The heavy work, he explained, consisted, for the most part, of loading and unloading trucks and moving barrels of olives. The plaintiff testified that he loaded or unloaded trucks “at least once a day” and “many days, more often than once.” He did not testify as to what percentage of the time worked by the nonexempt employees under his direction he spent in performing such manual labor.

Three former employees who had worked in the plant under the plaintiff’s direction testified that he spent from 75 per cent to 95 per cent of his time working in the plant unloading trucks and helping to load trucks and doing other manual labor. One girl who worked in the plant office said that the plaintiff did not spend very much time in the office but that he spent about 80 per cent of the time each day out in the plant.

On the other hand, Roland D. Ross, who for a time was president of the corporation and who, prior to the formation of the corporation, had been m a supervisory capacity *222 over the plaintiff, testified that the plaintiff spent less than 5 per cent of his time in doing manual labor of any kind. Ross said that the plaintiff was hired as general superintendent of the plant in charge of production, and that the plaintiff was “in charge of operating personnel, and in charge of all of their various equipment, on the production end of the business.”

Sylvester Keith, an electrician and maintenance man who worked in the plant about eight months during the period of the plaintiff’s employment, testified that the plaintiff did manual labor, such as starting fires and unloading and loading trucks, “ten per cent, if anything” of the entire time.

Irwin Smith, who was in the trucking business, testified that his trucks did all of the hauling to and from the defendants’ plant. He said that trucks went to the plant “an average of twice a week at the most” and that “then there were months there was no hauling out there.”

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Cite This Page — Counsel Stack

Bluebook (online)
199 F.2d 219, 1952 U.S. App. LEXIS 3781, 22 Lab. Cas. (CCH) 67,189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schumann-v-ross-ca7-1952.