Legal Document

362 U.S. 310 80 Supreme Court Reporter 739 4 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 753 James Pacific KF135 P2 MITCHELL, Secretary of Labor, etc., Petitioner,v.H. baron ZACHRY COMPANY. Number 83. Argued Feb. 25, 1960. Decided April 4, Miss Bessie Margolin, Washington, D.C., for petitioner. Messrs. R. Dean Moorhead, Austin, Tex., and Chester or Haw. Hawai‘i KFH45 A2 Johnson, San Antonio, respondent. Mr. Justice FRANKFURTER delivered the opinion Court. 1 Once again we are presented with a nice question concerning scope Fair Labor Standards Act, as amended. 63 Statutes-at-Large 912, 29 Code KF62 § 207, Annotated KF65 U5 207. The respondent, construction contractor, was engaged by Lower Nueces River Water Supply District (hereafter to be called District) construct dam impounding facilities on lower in Texas at cost about $6,000,000, order increase roughly tenfold District's then-existing reservoir capacity. is not multi-purpose project; its sole purpose create an expanded District. water impounded supplied consumers locally, within State Texas. site new chosen 1,400 feet downstream from old, expectation that upon completion old would inundated thus replaced greatly reservoir. In interim until completion, could serve assure continuing supply. 2 District, though some purposes independent governmental agency under law, may here dealt simply supply system included City Corpus Christi. Its contract requires it entire output; turn agrees operate maintain completed but outside city limits. It conceded between 40% 50% all consumption accounted industrial (as distinguished residential, commercial, hospital, municipal other) users, most whom produce goods commerce, essential their operations. Nor contested unspecified amount consumed instrumentalities commerce. 3 agreed employees involved—those actually work dam—the respondent failed comply requirements 7 if applicable.1 On basis applicability sought injunction Southern That court granted injunction, two grounds coverage: (1) since those building production goods—water—for commerce; (2) industries Christi producing occupation 'closely related' 'directly essential' While 'that Congress intended narrow coverage' 1949 amendment statutory definition 'produced' 3(j), 911, 203(j),2 concluded this employment remained coverage Act. 5 appeal Appeals Fifth Circuit reversed. 262 Federal Reporter, 2nd 546, 550. disposed first ground Court's decision holding itself constitute whatever use which might put. disposing second, invoked rule 'those plant used manufacturing do even come * definiton *.' such there no facility engage in, merely support, manufacture further 'remoteness' these jobs justified exclusion coverage. Both conclusions reflected general view 'the made more restrictive goods' than Act 1938, when substituted words word 'necessary,' added requirement production. 6 We brought case here, 361 807, 52, 57, because asserted conflict circuits. See Chambers Construction company versus Mitchell, 8 Cir., 233 717, Mitchell Co., 10 214 515. below, applying excluding 'construction,' relied our per curiam Murphey Reed, 335 865, 69 105, 93 L.Ed. 410, detailed C. W. Vollmer & 349 427, 75 860, 99 1196, expressly rejected 'new construction' held lock Gulf Intracoastal Waterway covered employment. did so concerned only 'in commerce' provision cannot confined. inflexible rule, had developed cases Employers' Liability 45 51 et seq., see pages 429, 431—432, 861, 862—863, inconsistent pragmatic test 201 seq. As early Kirschbaum Walling, 316 517, 62 1116, 86 1638, recognized penetrating elusive duty casts courts define particular less-than-constitutional reach scope, adequately discharged talismanic abstract tests, embodied tags formulas. No can derived disposition supra. There, whether depends circumstances relation activity 'commerce' sense setting, now turn. By confining commerce commerce,' has impliedly left domain regulation. For want administrative determination, like National Relations Board, primary responsibility been vested apply, give content to, guiding yet undefined imprecise phrases designated boundaries domain. 9 Before boundary 'production' indicated 'in' must 'necessary' it. 52 1061. interaction interdependence processes functions society definitions applied, easily lead find few activities were discernibly related it, logical requirement. statute, illuminated history, supra, page 522, 1119, demanded deduction eschewed. Courts alert 'not absorb adjudication essentially local fit take over legislation.' East 40th St. Bldg. Callus, 325 578, 582—583, 65 1227, 1229, 89 1806. supra (316 1121), what deemed compelled gloss suggest limitations 'necessary.' found building-maintenance employees, ranging electrician porter, loft locally owned tenanted producers 'such close immediate tie process (were) therefore much part it,' employees' occupations Borden Borella, 679, 1223, 1865, precisely same formulation expressed conclusion maintenance producer-owned office producer's central offices, any facilities, also Act's 1806, however, covered. Although contained offices producers, owned, out tenancy, fact miscellany tenants. Regardful governing principle turns nature duties, nature, interstate, employer's business, distinguishable employment, enterprise 'spontaneously satisfies common understanding business,' sufficiently different, despite identical employee prior justify regarding separate 'necessary parts commercial process' These decisions distinctions exercises lexicography. niceties phrasing formula service judgment, dispense painstaking appraisal variant elements different situations successive light limit short exercise full power Commerce Clause. 11 attempted formulas relationship required furnish automatic spontaneous answers specific problems application they arise protean diversity, principles afford direction inquiry defining broad bounds move. limits understood terms social appear inconsistent. manifests competing concern avoid undue displacement state regulation dominantly character. Accommodation interests device confinement traditionally national concern. focus became 'commerce,' broadest constitutional sense, limited 3(b) statute: 'trade, transportation, transmission, communication among several Employment least affected interests. A step removed 'for' Under clause have sustained product primarily 'facilities instrumentalities,' Alstate Durkin, 345 13, 73 565, 97 745, or, products move Further 'related' provision, necessarily borne mind furthest scheme statute hub interest predicated. 12 3(j) alter basic coverage, reinforce last section position periphery taken into account relevant factor determination. revising turned section, evidently continued regard marking outer applicability. substantially adopts indicate But examination history discloses adopting approve everything done purported applications inevitably formulation. approach confirmed, change occasion courts, including Court, covered, law-defining body too remote incidental 13 House, overriding contrary action Committee unchanged, H.R. 5856, reported, H.R.Rep. 267, 81st Cong., 1st Sess., 1949, adopted proposed member Lucas floor (95 Cong.Rec. 11000), amend 3(j). Representative plain his constrict 95 Cong.Rev. 11001. passed present except House version 'indispensable.' 14 Senate own bill, S. 653, draft, unchanged. resulting conference bill insofar amended already noted. 15 reports repective conferees manifest disagreement degree,3 apparent restraint both. example, approved Martino Michigan Window Cleaning 327 173, 66 379, 90 603, disapproved (H.R.Conf.Rep. 1453, Page 15); while conferees, emphasis, noted standard applied 'most' adopted. 14874. 16 illustrations remains unchanged amendment, utilities supplying H.R.Conf.Rep. 14; 14875. illustration either statement deals designed solely distribution system. Report does E. Schroeder Clifton, 153 385, instance involved one support dam; itself. Thus, accept authoritative, relieved deciding where approval disapproval facts lie. To once apply set down Kirschbaum, which, renewed awareness intrusion withdrawn activites. 17 establish relies Farmers Reservoir Irrigation McComb, 337 755, 1274, 1672, he asserts, establishes who operation of, repair distributing commerce.4 He urges recognized—as below do—that excluded concededly expansion characteristic agree. 18 Assuming arguendo follow is. undoubtedly equally depend supply; intended. distinction hand, replacement other, often difficult delineate practical law indifferent. relevance isolate flow invariably relate, lies operation, opposed undertaking end result process. Vollmer, rightly distinct se remove place proximity demands predicate Here, neither nor construction. Operation will facilities; another remote. 19 Lublin, McGaughy Associates, 358 79 260, 243, (349 863), closely enough 'production each vitally said demonstrates useful guides here. manifests, is, most, production' covers. Compare 745. reason, although never necessary inclusion, extrapolated conformity scheme, displace 'throughout farthest reaches channels interstate commerce.' Walling Jacksonville Paper 317 564, 567, 332, 335, 87 460. vitality attaches conclusory 'directly' 'vitally related.' What finally controlling needs argument significantly Lublin Vollmer. 20 Moreover, require distributed, use. users throughout geographical area, somewhat less half producers. construction, differentiated irrigation case, dedicated exclusively farmers 21 doubt matters nicest degree. They mode enforcement statute. Bearing cautionary revision focal center combination remoteness production, absence dedication persuades us 22 alternatively should regarded 'goods' produced 'for compares materials road sufficient answer contention record devoid evidence purposeful substantial otherwise Alstate. Indeed, appears insignificant portion total. 23 Affirmed. 24 DOUGLAS, CHIEF JUSTICE, BLACK BRENNAN concur, dissenting. 25 consistent dissent my Brother joined, case. liberal given forsaken. Yet seems me singularly inappropriate mere matter 26 report Conferees 14874—14875) ushered form1 said: 27 'The employers customers other directly This true, following activities: 28 '2. Producing fuel, power, water, using Reynolds Salt Valley Users Asso. (143 F.(2d) 863 (C.A.9)); Phillips Meeker Coop. Light Power (158 698 (C.A.8)); Lewis Florida (154 751 (C.A.5)); West Kentucky Coal (153 152(582) (C.A.6)).' supply—a services railroads, truck companies, airlines, various major area connection. furnished industrially. Ass'n, 143 863, canals dams growers crops shipment 30 582, men coal sold factories 31 Cooperative Association Phillips, 158 698, cooperative electricity companies 32 three decisions, noted, Certainly then, maintaining indicates. 33 How precedents followed, built Act? 34 functioning instrumentality be, effect, rather isolated, activity.' 862, 1196. There there. understand why stringent determining Armour Wantock, 323 126, 131, 165, 167, 118. 35 Prior amendments 'process necessary' standard, far material commerce.2 'repairing, maintaining, improving enlarging . group, stated, 'performing tasks effective productive operations producer.' 36 Most cited descriptive category working existing structures appliances commerce,3 Such 1865. group McCrady 156 932, workers roads bridges transport them existence. clearly suggests redefining contours delineated cases, well cases. 37 squarely category, project wholly improvement being improved seem highway company, making intrastate improve employing labor 38 So N Dec. Immigration Nationality Decisions believe today's changes symmetry judicial rulings narrows impairs effectiveness. Today's ruling departure accepted retreat fear invite hostile constructions undermine base gave If alteration better suited mark areas policies cover. regret today up territory fairly claimed, backward measures protect lowest paid weakest wage earners Nation. With exceptions 7, hours directs employer provisions 'any Only 1949. provided 'an shall employed producing, manufacturing, mining, handling, transporting, manner goods, thereof, State.' (Emphasis added.) provides: 'or 911. views minority emphasize inconsistencies Senate. 14880. similarly conferees. Section "Produced' means produced, manufactured, mined, handled, worked State; note 1, And Roland Electrical 326 657, 413, 383, report.

Classification Label: 6