W. Willard Wirtz, Secretary of Labor, United States Department of Labor v. Elwyn H. Ferguson, Doing Business as Elwyn Ferguson Roofing Company

317 F.2d 343, 1963 U.S. App. LEXIS 5536
CourtCourt of Appeals for the Fifth Circuit
DecidedApril 19, 1963
Docket19512_1
StatusPublished
Cited by5 cases

This text of 317 F.2d 343 (W. Willard Wirtz, Secretary of Labor, United States Department of Labor v. Elwyn H. Ferguson, Doing Business as Elwyn Ferguson Roofing Company) 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
W. Willard Wirtz, Secretary of Labor, United States Department of Labor v. Elwyn H. Ferguson, Doing Business as Elwyn Ferguson Roofing Company, 317 F.2d 343, 1963 U.S. App. LEXIS 5536 (5th Cir. 1963).

Opinions

GRIFFIN B. BELL, Circuit Judge.

This case presents, in the words of Mr. Justice Frankfurter,1 “a nice question concerning the scope of the Fair Labor Standards Act, as amended.” 29 U.S. C.A. § 201 et seq. Appellant2 instituted suit in the District Court seeking to enjoin appellee from violating the rate, overtime and record keeping provisions of the Act. 29 U.S.C.A. §§ 206, 207 and 211. Appellee denied coverage. It was undisputed that appellee was not in compliance, if covered. The stipulation of facts by the parties and the testimony of appellee formed the factual basis for the ad judication of the question of coverage. The District Court held that the employees of appellee were not subject to the Act, and dismissed the complaint. This appeal followed.

Appellee is the owner of a roofing company in Jacksonville, Florida. During the applicable period, October 6, 1958 to September 21, 1961, his twenty four employees performed approximately thirty per cent in dollar volume of their work on buildings operated and maintained by and for the use of twenty two specified firms. It was stipulated that these firms:

“* * * occupied said buildings and made use of facilities of said buildings and such buildings were utilized for interstate or foreign commerce or for the production of goods for interstate commerce, or both.”

It was further stipulated, and included in the findings of fact, that during the period involved appellee neither imported raw materials used in the business from without the State of Florida nor engaged in business without the State of Florida. The business of appellee was described in the findings as follows:

“During the past five or six years, most of Defendant’s work has involved small contracts and principally repair work. The Defendant does not subcontract roofing jobs for other construction companies. In the operation of his business, the Defendant does not enter into any continuing or long-term contracts with his customers to maintain the roof on buildings or any other portion thereof, but instead does installation and repair work as and when he is called upon to do so by his customers in the Jacksonville area.”

This finding is in large measure based on the testimony of appellee which served to define in some degree, the general [345]*345terms of the stipulation.3 According to his unrefuted testimony, most of the work done in the last five years was repair work. Siding was put on one new building and no subcontracting work was done. He had no contract for continuing services to any of the businesses specified. One roof was put on a new building under construction during the period in suit.

The District Court concluded that the business engaged in by appellee met the common understanding of what constitutes a purely local business not covered by the Act, and that the employees were not engaged in any closely related process or occupation directly essential to the production of goods for commerce within the meaning of the Act. Their activities were too remote from the activities of the occupants of the commercial buildings and not closely enough related thereto to place them in close proximity to commerce within the meaning of the Act.

The question presented is whether the employees of appellee, while engaged in this type of endeavor on buildings utilized for interstate or foreign commerce, or for the production of goods for interstate or foreign commerce, or both, were engaged in commerce or in any closely related process or occupation directly essential to the production of goods for commerce within the meaning of §§ 3(b) and 3(j) of the Fair Labor Standards Act, as amended. 29 U.S.C.A. § 203(b) and (j).4

[346]*346Our determination of this question must be based on the activities of the employees and not upon the nature, local or interstate, of the business of the employer. Congress confined coverage under the Act to employment in commerce or in the production of goods for commerce, or in any closely related process or occupation directly essential to production of goods for commerce. It did not attempt to occupy the whole field of employment under the Commerce Clause but left an area for state jurisdiction. Mitchell v. H. B. Zachry Co., 1960, 362 U.S. 310, 80 S.Ct. 739, 4 L.Ed.2d 753; and Mitchell v. Lublin, McGaughy & Associates, 1959, 358 U.S. 207, 79 S.Ct. 260, 3 L.Ed.2d 243.

In our view this case turns on whether the activities of the employees were so local in nature as not to be closely related or directly essential to the production of goods for commerce, and also so remote from commerce as not to be within the coverage of the Act. And the touchstone is the fact that the activities were sporadic, infrequent, isolated and purely local in scope. The work here, mainly roofing repairs, was not performed pursuant to a continuing contract or arrangement, or on a continuing basis, but at the request of the customer when and if needed, and upon choice of appellee as the repairman.

If it is true, as it undoubtedly is, that Congress meant to leave a part of this field to state regulation, it is the duty of the courts to draw the line between those employment activities covered, and those of purely local nature left to the state. 10 East 40th Street Building, Inc. v. Callus, 1945, 325 U.S. 578, 65 S.Ct. 1227, 89 L.Ed. 1806. And we take it as undisputed that appellee was a local roofer much as a local plumber, or electrician, or furnace repairman, or painter, or carpenter or the like, holding himself out for call as needed and his employees were engaged in doing such work as he was-offered and accepted. The line must be between activities purely local in nature, done on an infrequent, isolated, sporadic basis by employees of an outside repairman when and if selected as repairman, as distinguished from a regular and continuing basis or nexus with commerce or the production of goods for commerce so as to be in commerce, or amounting to-such support of the production process as to be closely related and directly essential to it.

The Supreme Court put it well by saying in 10 East 40th Street Building, Inc. v. Callus, supra:

“On the terms in which Congress drew the legislation we cannot escape the duty of drawing lines. And when lines have to be drawn they are-bound to appear arbitrary when judged solely by bordering cases. To speak of drawing lines in adjudication is to express figuratively the task of keeping in mind the considerations relevant to a problem and the duty of coming down on the side of the considerations having controlling weight. Lines are not the worse for being narrow if they are drawn on rational considerations. It is a distinction appropriate to the subject matter to hold that where occupations form part of a distinctive enterprise, such as the enterprise of running an office building, they are properly to be treated as distinct from those necessary parts of a commercial process which alone, with due regard to local regulations, Congress dealt with in the Fair Labor Standards Act.”

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317 F.2d 343, 1963 U.S. App. LEXIS 5536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/w-willard-wirtz-secretary-of-labor-united-states-department-of-labor-v-ca5-1963.