Document: 336 U.S. 281 69 S.Ct. 575 93 L.Ed. 680 FOLEY BROS., Inc., et al.v.ILARDO. No. 91. Argued Dec. 15, 1948. Decided March 7, 1949. Mr. Robert L. Stern, of Washington, D.C., for petitioners. Chester A. Lessler, New York City, respondent. Justice REED delivered the opinion Court. 1 This case presents question whether Eight Hour Law1 applies to a contract between United States and private contractor construction work in foreign country. 2 Act provides that 'Every made which * is party shall contain provision no laborer or mechanic doing any part contemplated by contract, employ subcontractor be required permitted more than eight hours one calendar day upon such work; *.' 37 Stat. 137, 40 U.S.C. § 324, U.S.C.A. 324. 3 Penalties are specified violations. In 1940 prohibition against workdays longer was modified as follows: 'Notwithstanding other law, wages every employed engaged performance character sections 324 325 this title, computed on basic rate per excess compensation all worked at not less one-half times pay.' 54 884, 325a, 325a. 4 1941 petitioners contracted cost-plus basis build certain public works behalf East Near East, particularly Iraq Iran. Petitioners agreed 'obey abide applicable laws, regulations, ordinances, rules America.' The provisions Law were specifically included contract. 1942 hired respondent, an American citizen, projects cook $60 week. employment contained concerning overtime. Pursuant respondent went Iran where he frequently during years 1943. 5 Upon refusal his request overtime pay day, brought suit Supreme Court York, claiming entitled him work. court denied petitioners' motions dismiss directed verdict thereby overruling contention did apply contracts performed countries. Judgment entered jury Appellate Division reversed ground amended confer right action employee pay. 272 App.Div. 446, 71 N.Y.S.2d 592. Consequently it consider now before us. Appeals reversed, holding applied 297 N.Y. 217, 78 N.E.2d 480, 484. Referring language statute quoted above, concluded, 'Words inclusive reach cannot properly read exclude government jobs abroad.' We granted certiorari settle important scope Law. 335 808, 35. 6 Since statutory interpretation, exists, §§ 321—326, 321 326, our starting point. pertinent limitation working time laborers mechanics thereof States. 321. same section makes unla ful require permit except extraordinary emergencies. An intentional violation mandate misdemeanor punishable fine imprisonment both. 322. insertion 'every contract' restriction must stipulate monetary penalty violation, takes form withholding moneys otherwise due under terms Finally lifted employees contractors supra, 282, 576, condition paid rate. 7 us power Congress extend Petitioner concedes exists. Cf. Blackmer v. States, 284 421, 52 252, 76 375; Bowman, 260 94, 43 39, 67 149. rather intended make law conclude, reasons expressed below, intention legislators. 8 First. canon teaches legislation Congress, unless countrary intent appears, meant only within territorial jurisdiction 437, page 254, 375, valid approach whereby unexpressed congressional may ascertained It based assumption primarily concerned with domestic conditions. find nothing itself, amended, nor legislative history, would lead belief entertained normal case. situation here different from Vermilya-Brown Co. Connell, 377, 140, we held declaring covered 'possessions' Fair Labor Standards Act, 29 201 seq., beyond those areas over has sovereignty effect 'possessions.' concluded leasehold there involved 'possession' meaning Act. 9 There Law, question, gives indication purpose its coverage places some measure control. attention indicating had been respective sovereignties authority, otherwise, labor laws customs Iraq. their territory leave, but without transfer property rights 10 scheme itself buttresses conclusion. No distinction drawn therein who aliens citizens Unless into should forced respondent's reasoning, regulate citizen chanced land. Such conclusion logically inescapable although conditions known wholly dissimilar control nation. so primary concern country attributed absence clearly purpose. See Attorney General Stone's 34 Op.Atty.Gen. 257, stated alien altering Embassy London. dis inction indicates both probable Congress. do include countries Iran.2 11 Second. history reveals led limit genesis present June 25, 1868, 15 77, apparently aimed unemployment resulting decreased navy yards. Congressional Globe, 40th Cong., 2d Sess., Part I, p. 335. 1892, when extended criminal penalties added, 27 340, considerations unemployment, influx cheap labor, need improved H.R.Rep. 1267, 52d 1st Sess. new remedy defects 1868. 23 Cong.Rec. 5723. 12 1912, contract.' (Italics supplied.) word 'every' designed misinterpretation according contractors. 48 381, 385, 394—95. Nothing supports below necessity, virtue broadness language, countries.3 A contrary inference drawn, think, 1913 amendment cover persons 'to perform services similar connection dredging rock excavation river harbor District Columbia.' 726, 321, dredgers phrase 'laborers mechanics' previously existing law. Ellis 206 246, 600, 51 1047, Ann.Cas. 589. attempt secure equality treatment hand other, hardly have latter class far corners globe while former limited rivers harbors 'of 13 payment overtime, passed discussion indicative geographical scope. 86 11216—11217. 14 Third. administrative interpretations various phases development afford touchstone geographic can determined. Executive Order 8623 December 31, 1940, note, CFR Cum.Supp. 850, issued pursuant 326 suspended directly Atlantic bases leased Great Britain. suspension indicated, sure, President applied, might apply, these bases. action, however, well predicated premise leases provisio discussed decision sufficiently subject them. Though numerous Orders suspend operation Alaska, Hawaii, Midway Island, Wake etc., able find, directed, orders purporting control.4 order deserves weight determination Act's applicability localities unquestionably completely direct competence true 1905 Moody, letter Secretary War, constructed Canal Zone. 25 441. For treated Zone territory. 444. laborers. If accept General's status Zone,5 line Convention, proclaimed February 26, too much. Although rights, flow act seq. project there. inclusion public-works advised State Department Treasury approved workers 257. contains citizenship, reasoning points does Comptroller agreement stating 'the 19, necessarily involve performance.' 19 Comp.Gen. 516, 518.6 16 expressly requires eight-hour provision, standard use will Standard Form 23, 41 U.S.C.App. 12.23, pp. 4520, 4522, U.S.C.A.Appendix, 12.23. also War Procurement Regulation 3, par. 346, 'all Law.' Yet neither instant others covering off-continent operations clause.7 Similarly 'does legally necessary countries.' Letter November 8, 1948, signed Acting Legal Adviser 'For State,' General. 17 conclude precise problem us, tend support restricted 18 decide inapplicable control, unnecessary either via third beneficiary route, cause employer wages. Reversed. 20 FRANKFURTER, whom JACKSON joins, concurring: 21 Because I feel bound still open because rendered Term. felt it, obliged dissent 22 confronted covers party'. construes even corporation domiciled 'An purpose.' reliance put Stone refused interpret applying done London enforcement disturb agreements country.' 260. Support found reaches 'such application easily serious difficulties effecting social business differ widely own.' 518. considerations, agree, ought take precedence literal guides interpretation. Security & Trust Commissioners Columbia, 224 491, 32 553, 56 856. not, explicit declaration policy, assume impose standards peoples generally regulatory 488, 492, 493. But could regard controlling if That indistinguishable extension difficult avoids compelled confined party. Uniformity Government contracts, indeed, matter much nearly usual Moody showing Panama Canal, regarded 24 re pects presented compelling refusing attribute employees. Here construe phrase, party,' peculiar own context. case, fell term 'possessions,' used least sixty-eight times. dissenting opinion, 398, 151, note 11. And illustrating readiness interpretation statutes occurs, see Spelar Cir., 171 F.2d 208, Federal Tort Claims base Newfoundland. moreover, brushes aside official apprehensions about interference influenced judgment here. All guide general statements opinions two Attorneys specialized information abroad, knowledge consistent opinions, says merely said: 'Any obtained Britain 99 year political sense Department's view calculated improve relations Government. Moreover, very detrimental military they future sought.' 26 speaks authoritatively international responsibility observing nations, thus spoke letter. knowledge, courts pretend, bearing observance propitious negotiations agreements. reflects knowledge. Even cloistered judges, ignorant fact exhausted interest securing ours. Our disregard weighty followed petition rehearing impressively supported actively responsible executive officers reiterated among 'unfortunate' added share assurance house assembly Bermuda colonial legislatures undertake worthy arisen reason contractors' workmen's colonies concerned.' 28 Army 'During past nine experience countries, contracting discovered (whether handled through CPFF contractor) hiring native workmen local overnment many maximum wage dare violated. These sometimes fixed regulation force statute, policy practical governments explain seriously disrupt economy. Also, industrially undeveloped officials advise 'excessive' common jeopardize availability police problems state. (It noted economic structure areas, organized along tribal lines, precludes dealing individual laborers.) appears doubtful apprised special problem. personnel overseas sites minor comparison paying minimum face militant opposition governments. mechanics, skilled semi-skilled artisans craftsmen, always hourly rates benefits exceeding requirements *.)' Navy views: 'It extent practicable practices respect thereto conform possible particulr locality. Application particular create adversely affect cooperation heretofore given authorities. continued authorities is, course, highly desirable.' Wage Administrator, ultimately enforcing decision, wrote 'even sound conclusions help foresee fundamental attempting exercise full sovereign especially employers involved.' Administrator's relation persuasiveness views, printed Appendix opinion. 30 If, charged with, experienced in, administration bases, broad manifest why precedent, join reading narrow party' way departed departure reluctance interfere 'labor country'. 31 Public Contracts Divisions Washington 33 Honorable Phillip B. Perlman, Solicitor Justice, D.C. Dear Perlman: By dated 22, you intend filed recent Company 140. You state views Departments State, Army, Navy. On Departments, urge reconsider 'possession,' 'State Territory possession' Section 3(c) 203(c), art, defense area 'possession.' forward my 35 think fairly said predecessors considering aspects wage-hour past, proceeded traditional concepts implicit 'any possession States', decisions, guidance so, studied authoritative decisions construing situations thought comparable, gave expressions proper governmental agencies what viewed Territories possessions exercises rights. Interpretative Bulletin 2, first November, 1938, Chapter V, 776, Title Code Regulations (section 776.1(c)) replaced bulletin July, 1947, Puerto Rico, Zone, Guam, Guano Islands, Samoa, Virgin Islands 36 When type 1943, view, Government's brief Court, subsequently after appeared being litigated consultation indicated ruling (the your having written time). modification position reflected following inquiries: 'Until settled agencies, assert British.' As result Court's 'Territory States' purposes departments Government, placed past. anticipate major confront me ruling. 38 First, duties initially, pending courts, come seem follow aided sense, sovereignty, called enter field previous offers reliable guides, whic agency ordinarily seek advice Department. Adequate deciding questions are, available itself. difficulty, circumstances, reaching Okinawa, Greece, Iceland, Canada, Newfoundland, Philippine Tunisia, Arabia apparent. My classified areas. 39 Second, involved. insuperable, vexing venue civil sanctions cases seems me, arise active And, appreciate, appropriation for, organization devised contemplation efforts outposts these. has, explore fully period filing petitions rehearing. grant glad results further exploration apprise effects over-all Very truly yours, 42 Wm. R. McComb, Administrator. 321—326. '* Words universal scope, restraint trade,' person monopolize,' taken, mean legislation, legislator catch.' Banana Fruit Co., 213 347, 357, 511, 513, 53 826, 1047. See, 9251, C.F.R.Cum.Supp. 1216, 9898, C.F.R.1947 Supp. 172, suspensions specified. Isthmian 1904, 2234, authority 492 Illustrative clause omitted are: W 1098 eng—1525, (Labrador Baffin Island); eng—1375, (Cuba); eng—135 , April 24, (Bahamas); eng—108, 10, (North Africa Palestine); eng—2, August (Greenland); 258 eng—54, (Newfoundland); 958 eng—50, 4, (Bermuda).

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