W. Willard Wirtz, Secretary of Labor v. Baldor Electric Company

337 F.2d 518, 1964 U.S. App. LEXIS 4869
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 29, 1964
Docket17770
StatusPublished
Cited by25 cases

This text of 337 F.2d 518 (W. Willard Wirtz, Secretary of Labor v. Baldor Electric Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. 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 v. Baldor Electric Company, 337 F.2d 518, 1964 U.S. App. LEXIS 4869 (D.C. Cir. 1964).

Opinion

WASHINGTON, Circuit Judge:

The Secretary of Labor appeals from a District Court order setting aside his determination, under the WalshHealey Public Contracts Act, 49 Stat. 2036-39, 41 U.S.C. §§ 35-45, of the prevailing minimum wage in the electrical motors and generators industry. 1 The chief questions presented are whether the Secretary of Labor properly based his determination of the prevailing minimum wages in the industry on a broad survey conducted under his auspices, where at the same time (a) he declined to disclose at the hearing the underlying data on which the wage conclusions in the survey were based, and (b) uncontradicted evidence was submitted by the industry which cast serious doubt on the accuracy and reliability of the survey’s results.

In the years immediately following the passage of the Walsh-Healey Act these questions could perhaps have been easily answered in the affirmative. In Perkins v. Lukens Steel Co., 310 U.S. 113, 60 S.Ct. 869, 84 L.Ed. 1108 (1940), the Supreme Court held that members of an industry to which the Secretary’s minimum wage determination applied had no standing to challenge his action, that the Walsh-Healey Act “was not intended to be a bestowal of litigable rights upon those desirous of selling to the Govern *521 ment”, and that the Act evinced a “lack of intention to create any rights for prospective bidders before a purchase is concluded.” 310 U.S. at 127, 128, 60 S.Ct. at 877. As a result of the Perkins decision, the Labor Department’s procedures in administering the Act were in general not subject to judicial review, and the Department eventually came to rely — as the basis for its minimum wage determinations — on the confidential surveys of prevailing wages conducted by its Bureau of Labor Statistics. 2

In 1952, the Walsh-Healey Act and its administration came under fresh scrutiny by Congress. The Fulbright Amendment, 66 Stat. 308, 41 U.S.C. § 43a, enacted in that year, added Section 10 to the Act, the tenor and effect of which will be considered in Part I, immediately following, which deals with the central questions in the case, referred to at the beginning of this opinion. 3

I.

Section 10 of the Walsh-Healey Act, added by the Fulbright Amendment, provides in pertinent part:

“(a) Notwithstanding any provision of section 4 of the Administrative Procedure Act, such Act shall be applicable in the administration of sections 1 to 5 and 7 to 9 of this Act.
“(b) All wage determinations under section 1(b) of this Act shall be made on the record after opportunity for a hearing. Review of any such wage determination * * * may be had within ninety days after such determination is made * * * by any person adversely affected or aggrieved thereby, who shall be deemed to include any manufacturer of, or regular dealer in, materials, supplies, articles or equipment purchased or to be purchased by the Government from any source, who is in any industry to which such wage determination is applicable.”

The relevant portion of Section 7(c) of the Administrative Procedure Act, 60 Stat. 241, 5 U.S.C. § 1006(c), states:

“Except as statutes otherwise provide, the proponent of a rule or order shall have the burden of proof. * * * no sanction shall be imposed or rule or order be issued except upon consideration of the whole record or such portions thereof as may be cited by any party and as supported by and in accordance with the reliable, probative, and substantial evidence. Every party shall have the right to present his case or defense by oral or documentary evidence, to submit rebuttal evidence, and to conduct such cross-examination as may be required for a full and true disclosure of the facts.” 4

Section 10(e) (B) of the Administrative Procedure Act provides, insofar as here material, that upon review, courts shall “set aside agency action, findings, and conclusions found to be * * * (4) without observance of procedure required by law; (5) unsupported by substantial evidence in any case subject to the requirements of sections 7 and 8 [of the Administrative Procedure Act] * * See 60 Stat. 243, 5 U.S.C. § 1009(e) (B).

*522 The suit presently under review was brought on the theory that under Section 10(e) (B) of the Administrative Procedure Act the District Court should set aside the Secretary’s minimum wage determination for the industry because the administrative hearing did not provide the procedural safeguards conferred by Section 7(c) of the Act and the determination was not supported by reliable and substantial evidence. A description follows of the administrative hearing culminating in the wage determination.

Pursuant to Section 1(b) of the WalshHealey Act, supra footnote 1, the Department of Labor instituted an administrative proceeding for the purpose of determining minimum wages which prevail in two branches of the electric motors and generators industry — the fractional branch, producing equipment of less than one horsepower, and the integral branch, producing equipment of one horsepower and up. In connection with this proceeding, the Bureau of Labor Statistics (“BLS”) of the Department of Labor undertook a survey by means of a questionnaire, designed to ascertain the number of establishments in the industry, the number of covered workers in each establishment, and the wages paid by each establishment.

The BLS questionnaire, which contained a pledge of confidentiality, 5 was circulated to 775 establishments. The names of these establishments were primarily obtained from unemployment compensation insurance listings furnished in confidence by the several States to the Department of Labor. 6 Establishments within the scope of the survey 7 were asked to report data respecting total employment, total covered workers, and hourly earnings of covered workers 8 for the payroll period ending nearest October 15, 1960.

After the answers had been received, BLS compiled six tables summarizing the wage data of 216 firms determined by it to be within the scope of the survey but not identified in the tables. Of these firms, 212 had answered the questionnaire circulated by BLS and the data as to the other 4 firms (which had declined to answer) was estimated.

After the tables had been compiled, a hearing to determine the prevailing minimum wages in the industry, pursuant to Section 10(b) of the Walsh-Healey Act, was scheduled before a Hearing Examiner.

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Cite This Page — Counsel Stack

Bluebook (online)
337 F.2d 518, 1964 U.S. App. LEXIS 4869, Counsel Stack Legal Research, https://law.counselstack.com/opinion/w-willard-wirtz-secretary-of-labor-v-baldor-electric-company-cadc-1964.