Document: 334 U.S. 446 68 S.Ct. 1186 92 LE d. 1502 BAY RIDGE OPERATING CO., Inc.v.AARON et al. HURON STEVEDORING CORPORATION v. BLUE Nos. 366, 367. Rehearing Denied Oct. 11, 1948. Argued Jan. 12, Decided June 7, [Syllabus from pages 446-448 intentionally omitted] Messrs. Peyton Ford and Marvin C. Taylor, both of Washington, D.C., for petitioners. Mr. Monroe Goldwater, New York City, respondents. Justice REED delivered the opinion Court. 1 These cases present another aspect perplexing problem what constitutes regular rate pay which Fair Labor Standards Act requires to be used in computing proper payment work excess forty hours. The applicable provisions read as follows: 2 'Sec. 7. (a) No employer shall, except otherwise provided this section, employ any his employees who is engaged commerce or production goods commerce— 3 (3) a workweek longer than hours after expiration second year such date, unless employee receives compensation employment above specified at not less one one-half times he employed.'1 4 posed method longshoremen foreign interstate varying irregular throughout under collective bargaining agreement handling cargo provides contract straight time hourly rates done within prescribed 44-hour schedule overtime all outside hours.2 5 two suits were brought class actions on behalf employed by stevedoring companies, Bay Ridge Operating Co., Huron Stevedoring Corp., recover unpaid statutory compensation3 accordance with § 16(b) Act.4 By stipulation claims ten specific each case severed consolidated trial, leaving other plaintiffs pending docket. here are period October 1, 1943, September 30, 1945. 6 terms respondents, working Port York, fixed question between International Longshoremens Association Shipping together certain steamship stevedore companies. It was established 'basic day' eight week,' that is, workweek, forty-four hours; different types 8 a.m. 12 noon p.m. during five days week, Monday through Friday, Saturday, workweek. first called 'straight time' rates, entitled 'overtime' rates. This designates these overtime. For four exactly half rates; slightly ranged $1.25 $2.50 an hour. paid Sundays legal holidays. no differential week.5 7 Respondents claim their meaning s 7(a), average computed dividing total number worked single into received week; those workweeks they more 7(a) basis rate. petitioners have, therefore, minor exceptions presented review, complied requirements 7(a). That taken consideration contend intended cover earned did it because substantially amount District Court held but Circuit Appeals Second otherwise.6 Throughout proceedings have been represented Department Justice, since United States its cost-plus contracts real party interest. Substantially war years performed account States. Solicitor General notes prior decision Appeals, 118 had instituted longshoremen, approximately 100 new complaints filed. Contracts same general type said effect our maritime areas. Witnesses testifying before Wages Hours Subcommittee House Committee Education stated liability Government would large.7 Wage Hour Administrator has filed brief proceedings, advised us Division 'believes given court below interpretation Section correct.' testified length committee views issues cases.8 Amicus briefs Association, National Manufacturers, Waterfront Employers Pacific Coast, urging reversed. 9 In order fix factual setting, we summarize findings fact made accepted challenged here. Most referred will found Appendix 162 F.2d 670. Employment longshore industry always casual nature. available depends ships port stay consequently highly variable unpredictable, day day, week season season. Longshoremen hired job 'shape,'9 normally three pier where available. hiring selects men desires 'shape'; some instances group gang. may last only few long week. Although carried hours, operations then cost, attempt do much possible 10 further night holiday higher least far back 1887, 1916, when 50%. Joseph B. Ryan, President designed shorten confine scheduled Despite differential, many unwilling night. required Saturday night, responsible high degree concentration 11 government introduced elaborate statistical studies show distribution From 1932 1937, 80% 1/2% manhours (exclusive holidays) earlier day. During war, proportion considerably greater volume led; 55% fell ratio previously correspondingly higher. respondents' irregular; weeks respondents all, varied over wide range. trial concluded week,'10 phrases periods 'normally, regularly, usually' Finding 45. giving judgment petitioners, placed emphasis arrived bona fide bargaining, favorable mandate required. plus workers whether not. Ryan's statement opposed suit 'as might wipe out gains 25 years,'11 rejected alternative contentions determined worked. noted shift differentials usually cents hour seldom exceeded fifteen deter paid; judge 50% actually Accordingly 'collectively bargained rate' Act—the 69 F.Supp. 956, 958. 13 must 'actual fact' could arranged agreement, citing 149 Madison Ave. Corp. Asselta, 331 199, 67 S.t . 1178, 91 L.Ed. 1432, 169 A.L.R. 1293. therefore received. contention work, Walling Halliburton Oil Well Cementing 17, 1056, 1312. reversed directions determine amounts due light Portal-to-Portal 1947, 61 Stat. 84. determination scope validity act attempted matters argued. 673. 14 On importance providing extra pay, granted certiorari.12 332 814, 155. 15 adopts view constituted Act. accepts, too, reasoning coercive sense exert pressure employers carry activities credited against argues 'normal, non-overtime workweek,' controlling reference peacetime conditions, rather abnormal war-time sufficiently concentrated compel finding urges also contract, thus interpreted, accords congressional purposes enacting reduce spread preserve integrity bargaining. 16 We agree conclusion reached Appeals. Later opinion, 464, 469, 1196, 1199, set reasons concluding premium. Where there premium payments rule determining divide wages adjudge additional individual employer. Any so course subject enlargement 16(b). Compare 1947. determination, think, statute contract. 17 (1) statute, expresses intention Congress 'to require covered even though minimum.' purpose compensate labored maximum wear tear inducing cost.13 protects protecting overly So although thousand works compensation. 'one employed.' found. 18 contains definition determination. take forms. hour, piecework, month year, without guarantee earnings shall sum. vary Overnight Motor Transp. Co. Missel, 316 572, 580, 62 1216, 1221; A. H. Belo 624, 632, 1223, 1227, 86 1716. employee's irregular. extracted. As authority agency establish regulations, courts apply situation benefit binding interpretations administrative agency.14 19 Every employment, written oral, explicitly implicitly includes person employed. supra, 631, 1227; supra. 'the words 'regular * obviously mean normal, workweek.' Helmerich & Payne, 323 37, 40, 65 13. See Rosenwasser, 360, 363, 295, 296, 89 301. 'Wage divided equals rate.' 1221. 'The very nature reflect parties agreed regularly exclusive payments. arbitrary label chosen parties; actual fact. Once decided upon mode becomes matter mathematical computation, result unaffected designation contrary wage contracts.' Youngerman-Reynolds Hardwood 325 419, 424, 425, 1242, 1245, 1705. fact.' page 204, 1181. 20 dealing complex national industry, necessarily rely judicial application standards applying sanctions situations. expressed generality. variations unforeseeable. 634, 1228, refrained rigidly defining guaranteed weekly met minimum basic 60 amount. kept low relation wage, until 54 1/2 628, 1225. refused division find left parties. involved, reaffirmed narrow precedent principally publc reliance acceptance announced. Aside limitation Belo, itself provision none can respondent based pay. Our assent decision, moreover, does imply mere rate.15 maintenance flexible refusal requirement excessive results tested statute.16 undefined, feel sure full compensation, impose absence fraud clear evasion regard sums 21 Further, reject argument administered persuasive contracts. public policy recognizes effectiveness encourages use,17 nothing knowledge authorizes give decisive weight declarations 202 1180, 1181; Harnischfeger 427, 432, 1246, 1249.18 A vigorous collectively obtained should effective pay19 think practices determinative factors individual. 22 cannot declaration treated employee, drawn happens most reasonable represents If included check deducted division. deduction language statute. When says receive employed, exclude computation To permit enter allow premium—a pyramiding intended. avoid similar double payment, paid, if obligation conclusions accord Administrator.20 23 crucial need pause differentiate situations described word 'overtime.'21 Sometimes denote sometimes clock pattern previous done, e.g., art. Premium Pay Provisions Union Agreements, Monthly Review, Labor, Vol. 65, No. 4. Overtime defined note 3. workday. kind excluded Otherwise expanded extravagantly already wit, Accordingly, figure Neither calculation. Extra standard likewise excluded.22 Under definition, Sunday immaterial character lower receipt 24 accept partly felt holding disruptive economy. 958, 959. use examples illustrations illustrate understanding thought indicated 7(a).23 agree. court's deduct premiums, them, quotation 461, opinion. calls beyond thirty-six Such man works.24 (2) An ten-hour contract.25 Or $1 40 $1.50 48 $52. $4 resulting sum hours.26 hand, watchman eight-hour watchmen. undesirable differential. hours.27 disagreeable labor premium.28 Cabunac Terminals Cir., 139 853. 26 seemed assume One allowing great difference showed true erred. size change large i like dangerous work. explosives. would, course, $3.75 per hard duty, figured 27 Nor Court's concentrate relevant significant. test contained considering contribute preceding paragraph 1192 tends, respects, men, 578, 1220. However, solely toward employment. Since cost. 28 But sole forty-hour Its manner strain commands fails part desirable Looked standpoint Because defect, about beginning subdivision major Thus burdens balanced 29 hold premium, deductible workday statute.29 30 Interpretative Bulletin 4, 69, refers important calculating Act, case.30 'Regular hours' apparently Administrator. He hardly synonymous prohibition maximum. His illustrations, numbers 3, premiums significant requiring increase decrease free steps regulation. article pointed identifying mark bar norm, regularity. Both emphasized casual, employment.' 959, 960. court, heretofore stated, 455, 1192, day,' 2(a) forth 5, normally, Indeed round-the-clock individuals. call attention lay aside inapplicable case. 31 contends important, shown statistics 456, longshoremen. concludes mistaken limiting government's point. means rate, sound. defect argument, however position construed, treats entire instead workmen, individuals fact, rg ular individual, significance control considered 32 presents problems involve apply. Cf. 33 interpreted conduct 43, 672; see infra.31 Apparently dispute controversy arose 19, resolution disagreements. employed.32 construction conclusion, supported evidence, leads consider provide time, including excess, hours.33 familiar agreement. record shows, promised shows 34 examining, before. 7(a)'s contracting wished compress possible. out, They times. 45, 672. 5,201 straightt ime 20,771 Four twenty Five others Three employers. seek recovery petitioner strict allowed furnish needed 'work Sundays, holidays afternoons required.' §§ 2; 5. Men greatly exceed meet 35 computation. Each weighted credit allocable precise difficulty. According Administrator's interpretation, himself equal multiplied hours.34 formula entitled, forty, us, seems one; leave final point proceedings. 36 ordered remanded Bya order, defense whole Portal modify orders amendments complaint answer evidence just. 37 modified affirmed. 38 Modified 39 DOUGLAS took FRANKFURTER, whom JACKSON BURTON concur, dissenting. 41 good needlessly sap principle disturb harmonious fruitful relations doctrinaire ought admonish disregard industrial realities. Promptly Eightieth convened, proceeded undo disastrous decisions so-called portal-to-portal cases. Within Anderson Mt. Clemens Pottery 328 680, 66 1187, 90 1515, Houses, overwhelming votes cut across lines, passed signed, What pertinent immediate 'interpreted judicially long-established customs, practices, employees,' misconstruction 'voluntary interfered disputes created.'1 heedless long-standing socially calculated foster happily peace thirty years. I deem necessary grounds my dissent. 42 quite abstract. parts cross-word puzzle. are, sought eliminate abuses. deals unrelated facts life, particularly pertaining longshoremen's York. equally well history up 1916 anarchic exploitation necessities want strong union secure equality power fair See, Barnes, (1915), passim. Through secured now upsets. rights duties industry—the members hand hand—were defined, interests employers, and, least, community adjusted rational civilized way. dissident union, protests Government, dislocates arrangement conceives compulsions Act.2 attribute destructive potency simple English words—'regular rate'—far deserve. 43 traditionally precarious dependent weather, trade unpredictables. Decasualization prime objective sixty achieve weekday daytime 44 strongest influences end make economically desirable. And achieved addition basic—the regular—rate assigning periods, emergencies. waterfront weekend generally prevailed. colloquially 45 continuously employer, another, wherever entitle several peculiarities way promoting aim devised namely, limit amounting regardless done. 46 (1943—45) controversy, governed 1943 Cargo Agreement terms, noon, p.m., Friday. Saturday.3 'Overtime' 'all time,' almost instances4 150% embodied practice whereby years, successive renewals agreements risen week' decreased. enumerated received, whatever times, drawing action, damages 52 1060, 1069, U.S.C. 216(b), U.S.C.A. asserting frequent incident contractual deemed together. theory, Court, average. 47 phrase technical term. Thirteen expressions undefined. legislative reveals replaced 'agreed wage' draft, indication modification significance. field relations, term arithmetic ordinary legislatively rightly addressed usage understood them mean, bear doing violence speech. truly reflects subterfuge circumvent 1244. rates' honest reflection distinctive conditions industry. concerned abstract customs trade, frequently reflected protection harmful common industries dealt specifically peculiar special treatment. 49 wages, comprehensive betterment trade—also covering health sanitary provisions, gang 'shaping 'shape,' arbitration, etc.—were entered 'intended aid supplant efforts American wr kers improve own self-organization bargaining.' H.Rep.No. 1452, 75th Cong., 1st Sess., p. 9. right bargain concerning recognized encouraged bill. law invade real, genuine them. low-wage long-working-hour workers, helpless victims weakness, bill seeks assist obtain wage.' Sen.Rep.No. 884, pp. 3—4.6 assurances allay traditional hostility organized wage-fixing. holds unlawful governing range relationships, especially restrict normal limit. substitutes inimical needs subversive process on. But, told, untoward consequences compelled reading written. 50 you ask get. conceived merely get arithmetical answer. put context relates, derived just aspect, totally considerations respected. defendants mutilated isolation. unambiguous explicitness deterrent believe say palpable faith, outlawed 51 How services limits reckoned? terms; agreement; default either. laid down fast rule, purely formula. reckoned spell out. conveyed using 'average' 'regular.' else go on, enough ascertain complicated details peculiarly competence judges, indicate rt e contingencies adjustments satisfied precludes consensual arrangements, provided, deal arms length, 'regular' artifice circumventing plain law. pursue interests. Regularity implies norm which, parties, consistent with, hostile to, underlying aims Discouragement overwork underemployment aims. serves 53 code sets standards, main features voluntary unions exist relatively little enforced regulated choice limited extent establishing wages. inclusion recognition distinction percentage. opposition predicated superadded perfect faith scheme agreement.7 detached statute's narrowly provision. computed. There justification interpreting elements clearly strictly Here industry's discouraged making costly. enlarged. Only work-week rate,' be, bargain. presupposition arrangements area wider, advantageous, disturbed existed. extended advancing economic non-unionized weak, furthering certainly te weakening eviscerating operating earnestly contending. 55 quarrel generality violates upheld. 'basic' fair, powerful fully equipped safeguard membership. eye scarcely 56 sustained 'employer (the) fit,' 'in wholly unrealistic artificial negate purposes.' 42, 11. confronted despite 'overtime,' observed, indiscriminately, designated reality 'shift differential,' induce pleasant carrying labels attached various conceal facts. again pierced deceptive 29; 1705; 1711. suggestion mislabeled circumstances relationship. distorted appear defend it. 57 odd misrepresent situation, exceptional restricted frequency that. turn experience, representative stipulations, exhibits, demonstrate work.8 apparent of, increased served afford peacetime, extremely recurring exigencies small minority occupied. 58 accuracy contradicted well. unusual anticipated. protective tariff every item. margin amply justify judge's designations unreal into, become height wartime effort. 59 Of increment (Finding 28), 'is added attract regarded yet inhibit multiple shifts,' while discourage safe guide distinguishing penalty Whereas testimony statistics. Review 183—85; Structure; Machinery (Bureau Statistics 1945) 21; id. (1946) 38; Structure: Foundries Tables 32, 33; 44—45. compare Directives Economic Stabilization Director dated March 8, 1945, April 24, War Board approve six third. CCH Law Service, vol. 1A, 10,034.11, 10,462. Applying 28, week-end fifty cent purports erred sure, state formal Findings Fact. state, however, depended statements quoted characteristics indicativeo f differentials. fail how disregarded substantiated evidence. Here, supporting impressive, strains overturn reach urged demanded dialectic.9 accurately particular stretch controversy. attitude accepted, undermine efficacy. subjects hazards self-serving individualism, inevitably weaken force improving forwarding peace. disavow. 63 Collective combinations conscious having responsibility membership resourceful experience discharging it, form self-imposed supplants force. Feis, Settlement Disputes (1921) c. II. accurate description greatest Yet rejects reject. Often, too often, strife engendered conflicting entirety—the employers' association—is complete lived alone, insist, continue live peacefully. assert interest fellows—some thousand—and urge private carries potential dislocation appeal rights. Unless officers know betrayed appears pretense express entirely, better let speak represent welfare, reconstructing, thereby jeopardizing, thrived wishes abide.10 64 play valuable relationships cast whim retain benefits wish disavow burdens. incidents entirety secured, ceases role instrument democracy. Rice, Agreements Law, Harv.L.Rev. 572; Wolf, Enforcement Agreements: proposal, Contemp.Prob. 273; Hamilton, Bargaining, Encyc.Soc.Sci. 630. furthermore, whose extends chiefly Even longshoreman precisely followed appropriate collectibe satisfy 'for workweek'11 specification thing uncertainty command impossible. history, practice, interpretations.12 short, predominant predicted advance, legal, be. fas go, later conclusion. me scale Far receiving required, were, recipients more. demand 'overtime pyramided overtime' clever catchphrase, describe fairly claim. reinstate judgments 1063, approved 25, 1938, 201 seq.; 120 later, 7(d). presented. Tennessee Coal, Iron R. Muscoda Local 123, 321 590, 698, 88 949, 152 1014; 1515. 84, 251 seq. decide solution hereafter appear, intending Consequently, following meaning. definitions quotations. pay.—Any premium.—Extra Statutory compensation.—Additional F.L.S.A. Regular pay.—Total conr only: Contract time.—Compensation longshoring par. 3(a) inclusive, Saturday. overtime.—Additional 3(a). 16, 216: '(b) section liable affected liquidated damages. action awarded plaintiff plaintiffs, attorney's fee defendant, costs action.' respect wages: I. Agreement. '1. Members rigging coaling same, loading cargoes mail, ships' stores baggage. sufficient perform satisfactory manner, '2. consist Holidays, afternoons, finish ship sailing Sunday, handle mail Meal A.M. A.M., Noon P.M., P.M. midnight '(c) Legal Holidays be: Year's Day, Lincoln's Birthday, Washington's Good Friday Jersey Shore, Decoration Fourth July, Columbus Election Armistice Thanksgiving, Christmas, State proclaimed Executive authority. '3. Straight All meal herein, coni dered relieved. '4. Scale: Addison 956; Aaron 665. Walter E. Maloney, representing Federation Shipping, run $260,000,000, admitted 'almost impossible calculate.' Hearings 80th 1198—1205. $236,000,000, $340,000,000, $300,000,000. Hearings, 1203, 2283, 2469. figures appear. mind. Pt. IV, 258, 260. approi mately 80,000 Canada. Thirty adopted ports. Coast states 20,000 stevedores contracts, Longshoremen's Warehousemen's Union. current I.L.A. I.L.W.U. contain clauses permitting cancellation sustain suit. 2467—2471; 2474—2482; 2736—2762. gave explanation 16: 'At namely 7.55 a.m., 12.55 6.55 seeking gather semicircle, constituting head foreman 'shape' hire, 'knocked off', told quit. selection shape relating conditions. duration entirely company.' found, 13, commenced ended a.m.' adjustment 42- 40-hour became effective. Ryan explained 'Our de-casualize possible, expensive Sunday. Before wanted daytime. once. wants proven negotiating things way, 'Q. Do object day?—A. Absolutely.' Furthermore, Association's primary fears insist reduction satisfaction requirements. 577, 578,6 1219, 1220, 1682; Brooklyn Sav. Bank O'Neil, 324 697, 706, 895, 902, 1296; Jewell Coal 6167, 161, 167, 1066, 1534. Kirschbaum Walling, 517, 523, 1116, 1120, 1638; 9, Part 258. 1181: questions case, was, consideration, adequate compensation.' 1244; 430, 1248. Relations 449, 151 Management 136, 141 Norris-LaGuardia 70, 2, 102; 251. contention, favor Court: 'Such catastrophic inevitable once plaintiffs' premise—that Congress, close eyes negotiated look pattern. Upon premise, live.' 'Collective effective, groups—with subdivision, being conducted. when, I.L.A., submitted vote affected, approval voted, ofc ollective mockery because, short fellow workers.' 1244, 1245. 28(a): 'Prior mely, applied idea excessivity, indispensable element concept understood. pattern.' position. purposes. 1. calling pay: (40) hours.' 202, 1180. legality consistently Asselta 156 139, 141. stated: 'This delicate accommodate policies. heavy handed meshing policies machine minimize friction points contact generate heat impair severely injure itself. 'In chronological July 1935, encourage bargaining; correct detrimental living health, efficiency workers; illustrated Order 9301, February (29 207 note), Fed.Reg. 1825, war.' $1.50=total $57. rate=$57, $7, hours=$1 hour=$55 wage. rate=$55—$5 50=$1 issued F.R. contractors construed superseding customary nor suspending modifying example, watchman's $.60 Nighttime $.90 eight-hour, seven-day shift. Sixteen compensated $.90=$50.40. $.45=$7.20; $57.60. ($57.60—$7.20) Field Letter 109, Office Solicitor, 31, 1946, 1947 Wage-Hour Man. 66, Chief characterizes litigation. Ferrer Waterman S.S. 70 follows, 3: GENERAL CARGO Work Days M.D....... $0.55. $0.77 M.D. P.M........ 0.90. 1.00 0.55. 0.77 0.77. 0.84 1.20 P.M....... M.N....... 1.25 M.N. A.M........ 0.84. 1.02 1.30. 1.40 discussion 40. quotient, suggested, fault method, payments; subsequent Another objection improperly skilled unpleasant , dual plan 'wholly issue. excerpt: 'Extra (see bulletin). properly him satisfying requirements, compensation—over time—paid hours—regardless agreement.' Division, Administrator, revised November 1940. classifications, Conclusion Paragraph Agreement, Fact cargo.' 2(a), above, 43(a): 'If, if, Mondays Fridays, holiday, morning hours—namely *' 14. illustrates example: occupation paying (30 hours), $2.20 $22 (10) (22 cents). considering, early larger award variation purpose. Compare, Releases 1913 1913(a) December 1942 January elects compute followed, 1(a), 251(a), 251(a). 'No (fory hours) 207(a), 207(a). '2(a) Midnight '3(a) instances, less, portion appealed. specify, excess. recovery, Similar intentions floor Houses spokesmen Administration Congressional members. Joint Senate 46—47 (Asst. Atty. Gen. Jackson); 181—83 (Secy. Perkins Sen. Walsh); 81 Cong.Rec. 7650, 7651, 7808 (Sen. Black); 7652, 7799, 7800, 7885—86, 7937 7813 Pepper); 82 1390 (Rep. Norton); 1395 Randolph); 83 7291 Allen); 7310 Fitzgerald); 9258 Randolph). Lord Stowell, Neptune, Hagg.Adm. 227, 232: '* natural parents mariner's performance service covenanted therein; title wages.' either stipulated concurred andt statistics: 1938 1932-37 (effective date Apr. 1944— FLSA) Mar. 1945 Aug. 1939 (height (eve war) activity) hours.. 79.93%. 75.03% 54.5% Night work... 15.13%. 17.89% 20.5% Weekend work.. 4.94%. 7.08% 25.0% Total 2% 23.29% 44.5% Ditto 86. 8% 76.71% 55.5% man-hours, consisting 2.57% 4.17% 11.1% Concentration man-hours 11.22 8.47 3.38 deduced ample daylight confined nights weekends. succession reductions parallel usual color, lack seniority, anything else—were discriminated forced accident desire deliberate both, treat Steele Louisville N.R. 192, 226, 173; Tunstall Brotherhood Locomotive Firemen Enginemen, 210, 235, 187. allegation. Italics supplied. Interpretations inconclusive. Citation suffice. Labor.

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