Townsley v. United States

101 Ct. Cl. 237, 1944 U.S. Ct. Cl. LEXIS 88, 1944 WL 3718
CourtUnited States Court of Claims
DecidedMarch 6, 1944
DocketNo. 45097
StatusPublished
Cited by13 cases

This text of 101 Ct. Cl. 237 (Townsley v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Townsley v. United States, 101 Ct. Cl. 237, 1944 U.S. Ct. Cl. LEXIS 88, 1944 WL 3718 (cc 1944).

Opinions

Madden, Judge,

delivered the opinion of the court:

The plaintiff was an employee of the Panama Canal. During the period here in question, March 28, 1934, to August 31, 1939, he was, successively, operator or leverman, chief operator, and master, of the dredge Las Cruces, which was operated by the Government in the Canal. He was employed and paid on a monthly basis. He worked eight hours per day, six days per week. He claims that under Section 23 of the act of March 28, 1934, 48 Stat. 522, forty hours per week was set as the regular work period for his job, and payment of time and a half for overtime was directed, hence he should have been paid at the rate of time and a half for his sixth day of work in each week throughout the period.

Section 23 is as follows:

The weekly compensation, minus any general percentage reduction which may be prescribed by Act of Congress, for the several trades and occupations, which is set by wage boards or other wage-fixing authorities, shall be reestablished and maintained at rates not lower than necessary to restore the full weekly earnings of such employees in accordance with the full-time weekly earnings under the respective wage schedules in effect on June 1, 1932: Provided, That the regular hours of labor shall not be more than forty per week; and all overtime shall be compensated for at the rate of not less than time and one-half.

[251]*251On April 4, 1934, which was within a few days after Section 23 was enacted, the Governor of the Panama Canal sought the decision of the Comptroller General as to whether Section 23 was applicable to employees of the Panama Canal, and if so whether it required the payment of overtime to certain described classes of employees. See finding 16. The Comptroller General answered on April 12 that Section 23 was applicable to certain of the employees described, since their wages were set by wage boards or other wage-fixing authorities within the meaning of the section and that it was applicable to employees paid by the month as well as those paid by the hour. He made no direct answer to the question of overtime for monthly employees, but a negative answer can fairly be inferred from the following statement:1

You are advised, therefore, that employees of the classes numbered (1) and (2)2 in the submission are subject to the provisions of section 23 of the act of March 28, 1934. As to class (2), however, no change in the monthly or annual rate of compensation other than that required to pay a rate not lower than the rate per annum or per month paid June 1, 1932, less any applicable percentage reductions, would be authorized. That is to say, they are to receive the same monthly or annual compensation although their regular hours of duty may be reduced.

The Governor thereafter attempted to save some money in spite of Section 23, by putting certain monthly paid employees on an hourly basis. He then divided the June 1, 1932 monthly salary by 224, the number of hours which, he estimated, they had been working per month, including 8 hours a day for six days a week, 16 hours for occasional overtime, and something more for occasional work on Sundays and holidays. According to this statement, they had been working 52 hours per week. Having thus computed their [252]*252hourly wages, he then added 20 percent to this hourly wage, so as to pay them the same for the new 40-hour week as they would have received before for a 48-hour week, though they had in fact been working, and had been paid for, many more than 48 hours, according to his computation of their previous hourly earnings. The computation is shown at page 168 of 14 Comp. Gen. The net result was to substantially reduce their monthly earnings. The employees complained, and the question was submitted by the Governor to the Comptroller General along with some related questions, and a request for reconsideration of his former decision. The Governor’s view as to the applicability of the 40-hour week to monthly employees is shown by his statement which was included in the submission to the Comptroller General:

(a) The former monthly rates of pay for electricians and other craftsmen in- operating positions included compensation for a definite amount of overtime service each month, which no longer can be worked under the new law. [14 Comp. Gen. at 168.]

The Comptroller General in reply reaffirmed his decision of April 12, and disapproved the recomputation of monthly wages described above. 14 Comp. Gen. 156, 164. In demonstrating the impropriety of subtracting that part of the former monthly salary which, the Governor said, had been included to compensate for overtime, the Comptroller General said, at 164:

* * * it is fundamental that a rate of compensation fixed by the month or year for full-time service is inclusive of any amount of overtime; that is, the compensation is for every day and every hour of the month or year whether or not service is actually rendered. * * *

At page 165, the Comptroller General said:

Referring to question no. 2, the procedure adopted changing the monthly rates to per hour rates, with a resulting deduction in weekly earnings, was not proper. As stated in decision of April 12, the proper procedure was to continue the payment of the same monthly rates of compensation even though there may have been a reduction in the number of hours per week and no overtime compensation is authorized. This is the gen[253]*253eral rule that has been adopted under the 40-hour week statutory provision for all employees paid on a monthly or annual basis to which the provision is applicable.

It appears from the above and from the rest of the statement of the Comptroller General that he decided that Section 23 applied to monthly employees who were artisans or mechanics, and that therefore their monthly salaries could not be reduced below the June 1, 1932, level, no matter how much their hours were reduced. He was not presented with the question as to whether they could be regularly worked more than 40 hours a week, since the Governor had taken the position that they could not, but he had advised the Governor in his April decision that Section 23 was applicable to them, and his discussion of the Governor’s attempted recom-putation assumes that their workweek was to be 40 hours, as Section 23 specifies. In one or perhaps two places in his discussion he observes that monthly employees should not be paid overtime.

It seems that with regard to the plaintiff, and, presumably, other employees similarly situated, the observation in the Comptroller General’s statement that monthly paid employees were not entitled to overtime was the part of the statement which the Governor made the most use of. He worked the plaintiff 48 hours a week and paid him no overtime. He could not have done this because he thought Section 23 was not applicable to the plaintiff. The Comptroller General had squarely held that it was applicable. He could not have done it because he thought the 40-hour-week limitation was not applicable to the plaintiff, though other parts of the section were. He had, in his submission of the question, stated that if the Comptroller General adhered to his decision of April 12, monthly employees could not be worked more than 40 hours a week. The Comptroller General’s language assumes that the 40-hour-week provision was applicable and that monthly employees would be worked only 40 hours a week.

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Related

Anderson v. Panama Canal Co.
194 F. Supp. 765 (District Court, Canal Zone, 1961)
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131 Ct. Cl. 797 (Court of Claims, 1954)
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96 F. Supp. 611 (Court of Claims, 1951)
Poggas v. United States
93 F. Supp. 1009 (Court of Claims, 1950)
Barker v. United States
117 Ct. Cl. 221 (Court of Claims, 1950)
Moorehead v. United States
81 F. Supp. 223 (Court of Claims, 1948)
Gray v. United States
76 F. Supp. 102 (Court of Claims, 1948)
Conn v. United States
68 F. Supp. 966 (Court of Claims, 1946)
Hearne v. United States
68 F. Supp. 786 (Court of Claims, 1946)
Dixon v. United States
103 Ct. Cl. 160 (Court of Claims, 1945)

Cite This Page — Counsel Stack

Bluebook (online)
101 Ct. Cl. 237, 1944 U.S. Ct. Cl. LEXIS 88, 1944 WL 3718, Counsel Stack Legal Research, https://law.counselstack.com/opinion/townsley-v-united-states-cc-1944.