Tipton v. Associated Milk Producers, Inc.

398 F. Supp. 743, 1975 U.S. Dist. LEXIS 11250
CourtDistrict Court, N.D. Texas
DecidedJuly 29, 1975
DocketCiv. A. No. CA 4-74-48
StatusPublished

This text of 398 F. Supp. 743 (Tipton v. Associated Milk Producers, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tipton v. Associated Milk Producers, Inc., 398 F. Supp. 743, 1975 U.S. Dist. LEXIS 11250 (N.D. Tex. 1975).

Opinion

MEMORANDUM OPINION

MAHON, District Judge.

This is an action arising under the Fair Labor Standards Act 29 U.S.C. Sec. 201 et seq. The case was tried before the Court on May 12-13, 1975, and the Court makes the following findings of fact and conclusions of law. The parties have stipulated sufficient facts to establish the necessary connection with interstate commerce and give this Court jurisdiction.

The defendant, Associated Milk Producers, Inc. (hereinafter A.M.P.I.), is a nationwide cooperative of dairymen engaged in providing services to dairymen to aid in the production and marketing of milk. It sells, installs, and repairs the equipment necessary to obtain, cool, and store milk. The Fort Worth Division of A.M.P.I. is composed of approximately 625 farms located principally in the north central Texas area.

The plaintiff L. E. Tipton, was employed by A.M.P.I. from December 7, 1970, through June 14, 1972.1 His primary duties were to install and repair the refrigeration equipment used by the dairy farmers to cool and preserve their milk in connection with its preparation for market. The installation and service of the equipment was usually performed on the farms of the dairymen who purchased the equipment. When service work was required at a particular farm the plaintiff would either be called at home by his supervisor and told to report directly to that farm the next day, or he would be sent to the farm after arriving at work. The defendant furnished the plaintiff a truck and the tools necessary to install and repair the equipment.

Every other weekend the plaintiff was “on-call”. He was required to be available on short notice to travel to any farm in the district to make emergency repairs. Tipton was not required to remain at home at all times while on call, however, but was afforded freedom of movement by merely leaving a telephone number where he might be reached with his supervisor, or by periodically checking in with his supervisor by telephone.

[745]*745The defendant stipulated that the plaintiff worked more than forty hours in certain weeks. It claims, however, that the plaintiff was exempt from overtime payments because he was an agricultural employee. It further claims that if he is not exempt that the number of overtime hours was minimal and that the plaintiff improperly included his on-call time and the time spent in transit to and from work in calculating his overtime hours.

The initial issue presented is whether the plaintiff was exempt from the requirement of an overtime premium because he was an employee engaged in agriculture under 29 U.S.C. § 213(b) (12). The term agriculture, as defined in 29 U.S.C. § 203(f), has two distinct meanings. First, agriculture is defined as including farming in all its branches, and among other things includes dairying. Dairying is defined in 29 C.F.R. 780.111 as including putting milk in containers, cooling it, and storing it where done on the farm. Second, agriculture is defined as including any practices performed by a farmer or on a farm as an incident to or in conjunction with such farming operations, including preparation for market, delivery to storage or to market or to carriers for transportation to market. Preparation for market includes the separating, cooling, packing, and storing of dairy products. 29 C.F.R. 780.151.

The defendant argues on page eight of its memorandum brief that the Court should find that it is a farmer, and engaged in an integrated farming operation. Although it is unclear whether the defendant contends that it is engaged in farming within the primary meaning of the term agriculture, whether it is a farmer within the secondary meaning of that term, or both, the Court finds that sufficient evidence was not produced to exempt the defendant as engaged in farming. No evidence was produced to suggest that the defendant put milk in containers, cooled it, or stored it on the farm. The only evidence introduced revealed that the defendant sold equipment to aid in obtaining, cooling, and storing milk, repaired that equipment, and promoted nationwide marketing operations. The Court is of the opinion that these activities are separately organized as an independent productive activity and not included in farming in all its branches.2

The defendant also contends that it should be exempted from payment of an overtime premium because it is within the secondary meaning of agriculture. 29 U.S.C. § 203(f). To come within this definition the defendant must prove its operations were performed by a farmer or on a farm as an incident to or in conjunction with such farming operations. An employer who qualifies as a farmer is exempt from the overtime premium requirements of the Fair Labor Standards Act.

The defendant argues that Wirtz v. Tyson’s Poultry, Inc., 355 F.2d 255 (8th Cir. 1966), provides ample foundation to find that it is a farmer.3 In Tyson Poultry, supra, the Court felt compelled to factually distinguish a number of very similar cases. In comparing Mitchell v. Huntsville Wholesale Nurseries, Inc., 267 F.2d 286 (5th Cir. 1959), Judge Vogal, at 259-60, looked to factors such as (1) who suffered the loss if production decreased, (2) whether the growers (dairymen) were agents or employees of the defendant, (3) who supplied the feed and medication, (4) the geographic distance involved, (5) whether the defendant purchased the goods (milk) or owned it from the beginning, and (6) whether the defendant owned the soil, chickens, or cows which produced the products being sold. Although little evidence was produced on [746]*746these factors the Court finds that Tyson’s Poultry, supra,, is factually distinguishable and not controlling. In the case at bar the farmers, not the defendants, owned the cows, and they suffered the loss if production decreased. Further, there is no evidence that the dairymen were the agents of the defendants.

Although it is possible that some farmers cooperatives may themselves engage in sufficient farming operations to an extent and under such circumstances sufficient to qualify as a farmer,4 the defendant has not proved those circumstances in this case. Without such proof the Court must rely on the legislative history of the Act which reveals the significance of the omission of any express language relating to cooperatives since many unsuccessful attempts were made on the floor of Congress to secure special treatment for them.5 The courts have held that in the absence of special circumstances that farmers’ cooperative associations are distinct from the farmers who own or compose them and the work performed by an association is not work performed by a farmer but for farmers.6

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Bluebook (online)
398 F. Supp. 743, 1975 U.S. Dist. LEXIS 11250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tipton-v-associated-milk-producers-inc-txnd-1975.