Young v. Kellex Corporation

82 F. Supp. 953, 1948 U.S. Dist. LEXIS 3164
CourtDistrict Court, E.D. Tennessee
DecidedJanuary 2, 1948
DocketCivil Action 754
StatusPublished
Cited by8 cases

This text of 82 F. Supp. 953 (Young v. Kellex Corporation) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Young v. Kellex Corporation, 82 F. Supp. 953, 1948 U.S. Dist. LEXIS 3164 (E.D. Tenn. 1948).

Opinion

TAYLOR, Chief Judge.

This is an action for overtime, liquidated damages, and attorney’s fee under the Fair Labor Standards Act of 1938, 29 U.S. C.A. §§ 201 to 219, for a period of employment beginning November 19, 1944, and extending to September 16, 1945, and for double time under Executive Order No. 9240, as amended by Executive Order No. 9248, and as set out as a note under Section 326 of Title 40, U.S.C.A. Suit was commenced in the Circuit Court of Roane County, Tennessee, and removed to this Court, defendant in removal relying on diversity of citizenship, jurisdictional amount of claim, and involvement of a federal question. Plaintiff Glenn M. Young sues for himself and all others similarly situated, but no other plaintiffs are named. The named defendants are Kellex Corporation and M. W. Kellog Company, both foreign corporations, the former allegedly a subsidiary of the latter. M. W. Kellog Company was not served with process and is not in court.

It has been stipulated by the parties that during his period of employment with Kel-lex Corporation plaintiff worked a total of 1568 overtime hours, exclusive of overtime on days classed as 7th consecutive days; also, that from May 6, 1945, to August 19, 1945, plaintiff was paid in full for all Sunday work, as 7th consecutive days of work, *955 but that prior to May 6, 1945, he was not .paid for any seventh consecutive day of . work.

During the period under consideration, plaintiff was employed by Kellex Corporation as “transportation manager,” having charge of a motor pool at Oak Ridge, Tennessee, and being responsible for keeping all automobiles of the pool in condition and readiness for use, as well as having under his supervision about 20 chauffeurs and chauffeurettes.

Several points of controversy appear in the case. Plaintiff claims he was an hourly employee, receiving a base pay of $1.62% 'per hour. Defendant insists that plaintiff was paid a weekly salary, not an hourly wage; also, that plaintiff has been fully 'paid. Plaintiff claims that he .was a laborer, within the meaning of the Fair Labor Standards Act and entitled to its benefits. Defendant contends that plaintiff was an executive, being a transportation manager with certain executive functions, .or an administrator, having power to hire and fire subordinate employees, hence exempted from coverage of the Act. Plaintiff claims that he was engaged in an occupation necessary to the production of goods for interstate commerce, within the meaning of the Act, and within the rule of Warren-Bradshaw Drilling Co. v. Hall, 317 U.S. 88, 63 S.Ct. 125, 87 L.Ed. 83, and related cases. Defendant insists that plaintiff’s employer, hence plaintiff also, was engaged in original construction and for that reason not within the coverage of the Act.

Proof has been taken on the controverted points and briefs have been filed. It has been admitted on behalf of plaintiff that in order to recover under the Act, plaintiff must prove one of the following: . (1) That he was engaged in interstate commerce; or, (2) that he was engaged in the production of goods for interstate commerce ; or (3) that his occupation was necessary to the production of goods for interstate commerce.

As regards recovery under the Act, plaintiff places his reliance on requirement No. 3, and has directed the burden of his proof to the end that he was engaged in an occupation “necessary to the production” of goods of commerce, within the requirements of Section 203(j) of the Act. Only the Act is relied on as requiring payment of time and one-half for overtime, liquidated damages, and attorney’s fee. Executive Order No. 9240 is relied on as authorizing double time for Sundays, as 7th consecutive days within the workweeks, although recovery for Sunday work as overtime under the Act has not been treated as excluded.

Although plaintiff has placed reliance on Executive Order No. 9240, as amended by Executive Order 9248, it has not been shown how the Order applies in plaintiff’s favor, nor has defendant demonstrated that it does not apply. Counsel’s brief for defendant refers to the case of Wells et al. v. Ford, Bacon and Davis, Inc., 6 F.R.D. 606, decided by the District Court for Western District of Kentucky, and affirmed without opinion by 6 Cir., 145 F.2d 240. But in that case the claim of plaintiffs under the Executive Order was dismissed on the ground that plaintiffs had not properly joined themselves in the purported class action. It was not necessary under the decision there for the court to construe the Executive Order as it might have applied in a proper case.

In the case here, plaintiff sues alone and claims more than the minimum jurisdictional amount. It is not seriously contended that plaintiff cannot join his claim under the Executive Order to his claim under the Fair Labor Standards Act, if that were necessary to confer jurisdiction. Also, plaintiff here relies on the Executive Order only for recovery of double time for 7th consecutive days, which the court in the Wells case observed was provided for in the Executive Order. Dictum of the Wells case is to the effect that the Executive Order does not require payment of time and one-half for overtime. That case is no authority for holding that Executive Order 9240 either is, or is not, applicable to the case here. Nor, apparently, is any authority to be found in judicial decisions.

Executive Order No. 9240, as amended by Executive Order No. 9248, was before the New York courts in Steiner v. Pleas- *956 antville Constructors, Inc., 1944, 182 Misc. 66, 49 N.Y.S.2d 42. There the court held that plaintiff was not entitled to recover double time for Sunday work under the provisions of the Fair Labor Standards Act, and in its very brief opinion the court added, “Executive Order No. 9240, as amended by Executive Order No. 9248, * * * is not binding on the defendant.” Plaintiff there was a dock worker for a contractor engaged in construction of a training base. The court did not explain why the Executive Order was not binding on defendant. The decision was affirmed without opinion by the Appellate Division. 269 App.Div. 738, 54 N.Y.S.2d 700.

In Barrett v. National Malleable & Steel Castings Co., D.C.1946, 68 F.Supp. 410, plaintiffs sought recovery of double time for “7th consecutive days.” There plaintiffs relied on the Fair Labor Standards Act, and the court held that the Act did not' provide for double time for 7th consecutive days. Although conditions contemplated by the Executive Order were present, apparently the Order was not relied on. That the Order was in the court’s mind is indicated by the fact that the court cited the Steiner case, supra.

As the question of recovery for double time under the Executive Order is before the Court here, it is necessary to inquire into the applicability of that Order. Executive Order No. 9240, as amended by Executive Order 9248, is set out in full in 40 U.S.C.A., as a note under section 326.

It provides in part as follows:

“V. All Federal departments and agencies' affected by this order shall refer to the Secretary of Labor for determination questions of interpretation and application arising hereunder.

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Bluebook (online)
82 F. Supp. 953, 1948 U.S. Dist. LEXIS 3164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/young-v-kellex-corporation-tned-1948.