Court Opinion

ID: 9637748
Source: CourtListenerOpinion
Date Created: 2023-08-22 15:18:06.908865+00
Date Added: 2024-06-11T18:09:59.962753
License: Public Domain

CLARK, Circuit Judge
(dissenting as to Point 2).
The difficulties in finding workable applications of the Belo principle are manifested not only in the varying views of the lower courts and the continuing criticisms of text writers, but also in the Supreme Court itself, where it has been constantly distinguished away except for somewhat hesitant support in a single case again emphasizing the sharp division in the Court. Walling v. Halliburton Oil Well Cementing Co., 331 U.S. 17,26,27, 67 S.Ct. 1056. Thus, the Be-lo doctrine has a shaky foundation; while thoroughly accepted is the principle that the actual hourly wage governs, and not the one artificially contrived to perpetuate the pre-statutory wage scale. Walling v. Helmerich & Payne, 323 U.S. 37, 41, 42, 65 S.Ct. 11, 89 L.Ed. 29; Walling v. Youngerman-Reynolds Hardwood Co., 325 U.S. 419, 424, 65 S.Ct. 1242, 89 L.Ed. 1705; 149 Madison Ave. Corp. v. Asselta, 331 U.S. 199, 204, 67 S.Ct. 1178. And the Halliburton case shows that for the Belo case now to govern, there must be a finding that the assumed rate was the actual rate in the light of facts and circumstances making such an inference a rational and reasonable one. It is significant that both cases affirmed — that is, did not feel compelled to reverse — findings made and sustained below. We should not extend the Belo scope.
Here, as the trial court stated in its opinion, what “for all practical purposes” was the same arrangement as the “guaranteed salary plan” adopted in 1940 actually came into existence for a number of employees “after the effective date of the Act, October, 1938,” i. e., to meet its supposed requirements. Moreover, there were changes made in the formula to make it fit more nearly the former wage, and various other anomalies showing that in reality the agreed salary controlled the nominal rate. So the district judge said, referring to those employees who lost by the change to the assumed hourly rate: “It, therefore, becomes evident that as to such employees the regular hourly rate, and consequently the overtime rate were illegally computed and im*678properly applied.” And he adds this apt quotation: “ ‘It was derived not from the actual hours and wages but from ingenious mathematical manipulations, with the sole purpose being to perpetuate the pre-statutory wage scale.’ Walling v. Helmerich & Payne, Inc., 323 U.S. 37, at page 41, 65 S. Ct. 11, 89 L.Ed. 29.”
This conclusion seems to me inescapable on the evidence; the only error the judge made, in my judgment, was in believing that this artificiality of rate was cured as to those who either received at least as much as before or came on the pay roll later. As is well settled, the employer’s honest belief that he is complying with the law is not a defense. Cases cited supra.
The suggestion in the opinion, made the foundation for reversal here, that the fluctuations in wages but for the guarantee would have been greater than in the Belo case cannot be accepted as either accurate or controlling. There was no finding on this issue below and almost no discussion in the briefs here except for the Administrator’s argument by way of conclusion that the record “suggests a regularity of normal working hours readily susceptible to adjustment to the statutory policy.” The table relied on in the opinion is made up from an exhibit introduced by plaintiff for another purpose. It was never claimed to be, and obviously is not, a fair sample for the use here made. Indeed, it represents only about 10 per cent of the time worked on the guarantee. And defendant’s own statement compiled from the actual evidence demonstrates that the time worked less than the statutory maximum was very substantially under 12%, instead of the 20% stated in the table.1 We can take it as clear on this record that the variation was rather less than half (not more than) that asserted for the Belo case.2 Moreover, we can easily overestimate the force of delusively simple numbers.3 At most this would be but one element out of a complex total supporting the inference of “actuality,” rather than “artificiality.” Fact finding at best is exceedingly difficult; neither it nor the Belo principle can be confined within the bounds of a mathematical chart of wage deviations from an assumed norm. In re Fried, 2 Cir., 161 F.2d 453, 462-464; Frank, A Plea for Lawyer Schools, 56 Yale L. J. 1303, 1307, 1308, 1327. Actually the facts here destroy the base for the Belo doctrine.
On Petition and Cross-Petition for Rehearing.
PER CURIAM.
Petitions denied.

 Defendant’s table, App. O. in its Brief, taken from Exhibit AV, shows that 53 (not 46) worked on the guarantee a total of 9,862 weeks, instead of the 1,019 weeks asserted above; and they worked a total of 1,166 weeks less than their scheduled hours. This, as defendant states, yields an ‘‘aggregate percentage” of 12% (actually 11.82% average) of weeks worked less the scheduled hours. Since for many the scheduled hours were 49 per week, and for the others they ranged from 44 to 55, the percentage under the statutory hours was obviously very much less than the 12% here stated.

 This is even more strikingly indicated when the 12% aggregate percentage, note 1 supra, is broken down into the separate percentages for each of the 53 employees. Thus we find that 38 fell under this percentage and indeed 30 had percentages of less than 10%. Of the remainder, only 6 showed percentages in excess of 20, and only 2 in excess of 27.4, though they had the unusual percentages of 47.4 and 76.5 respectively.

 Thus, the method based on totals of all employees, and not on individual variations, is open to serious question. Under it a few employees occasionally departing substantially from the usual pattern distort or falsify the total picture. See note 2 supra.