Arizona sun., 1947-01-03
Paw of Over Million Workers
Affected By Redefinition
Labor Press Service)

New YOrk-A new definition OF
"area of production" a term used
to determine the application of GER
tain exemptions from the mini
mum wage and overtime provi-
sions of the Fair Labor Standards
Act with respect to employees en-
gagged in specified operations re-
lated to the processing and hand
ling of agricultural products, was
issued today by L. Metcalfe Wall
ing, Administrator of the the Wage
and Hour and Public Contracts Di-
visions of the u. S. Department of
Labor.
The re-definition was made
necessary when the Supreme Court
in the Holly Hills Fruit Products
case, invalidated a former defini-
ton which included a test limit
ing to z the number of employees
in an establishment which might
qualify for the exemptions. The
court held that "area of produc-
ton" could not be defined in terms
Of the number of employees in a
plant.
Their eff ore, the re-definition,
which the Act requires the Ad-
miniStrator to make and which
was published in the Federal Reg
lister December Is in the form of a
regulation, is expressed in terms of
mileage and population only. From
best available sources it has been
estimated that 1,35O,OOO employees
in 100000 establishments will be
affected by the definition.
AS result of the re-definition
some plants processing or handling
farm produce may not be eligible
for exemptions which the earlier
definitions permitted them to take.
Other establishments may have
workers for whom they can now
take exemptions although under
previous definitions they could not
do so. In every case determina-
ton of exemptions for those en-
gagged in the specified operations
will now depend upon mileage and
population factors which are stat
ed in the re-definition.
Two types of exemptions from
the minimum wage (4O cents an
hour) and overtime pay (t;me and
half after 40 hours week. pro-
visions of the Act are dependent
upon whether the operations are
performed within the "area of pro-
duction." They are:
Type Complete exemption
from both the minimum wage and
overtime provisions (under Section
13 (a) (1O of the Act) for en-
ployees engaged in handling, pack
ing, storing, ginning, COMPRISING,
pasteurizing, drying, preparing in
their raw or natural state, or can
ming of agricultural or horticul-
tural commodities for market, or
in making cheese or butter or 9TH
er dairy products.
Type H-Exemption, not to ex-
ceed IA weeks a year, during sea-
sonal operations, from the over
time pay provisions only (under
Section z (c) of the Act) with re-
spect to employees of an employer
engaged in the first processing of
any agricultural or horticultural
commodity.
Under the new definition exemp-
tons may be claimed for workers
employed in an establishment
which (a) is located in the open
country or in a rural community,
and which (b) during the preced-
ing calendar month received 95
percent of it's commodities from
normal rural sources of supply
located not more than certain
specified air line distances (dif-
fering according to products
worked on) from the establish
lnent.
AS used in the definition, the
term "open country or rural COM
munity" does not include any city,
town or urban place of $500 or
greater population, or in any area
within one mile of the limits of
city or town of $500 to $4,000
population, 3 miles from city Of
$4,000 to 100000 population and
S miles from cities of 100000 or
more.
Distances set up in the defi1i-
Continued on page 81
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