Opinion · Supreme Court of the United States

Alstate Construction Co. v. Durkin

345 U.S. 13

Type
Opinion
Court
Supreme Court of the United States
Jurisdiction
Federal
Date
1953-03-09
Topic
general

How later courts describe this case

  • holding that employees who work in the production of materials to repair intrastate roads are engaged “in the production of goods for commerce” within the meaning of the FLSA
  • production of road surfacing products for local use in interstate highways constitutes interstate commerce because of relationship to instrumentality or facility of commerce

Citator

UpLaw has not yet analyzed Alstate Construction Co. v. Durkin. The absence of a flag is not a finding that it is good law.

Cited by
108 opinions

Headnotes

  1. Labor & Employment Law — Fair Labor Standards Act Coverage under the Fair Labor Standards Act extends to employees "engaged in commerce or in the production of goods for commerce," a category that includes not only employees whose work is itself in commerce but also employees engaged in the production of goods for commerce. 345 U.S. at 14
  2. Labor & Employment Law — Fair Labor Standards Act Employees who work off the roads producing materials used to repair interstate roads and railroads are engaged in the "production of goods for commerce" within the meaning of the Fair Labor Standards Act, because roads and railroads are indispensable instrumentalities of interstate commerce and one who produces goods for those instrumentalities produces goods for commerce. 345 U.S. at 16
  3. Labor & Employment Law — Fair Labor Standards Act "Production of goods for commerce" is not limited to the production of goods for transportation across state lines; production of goods destined for use in commerce within a single state may fall within the Act's coverage. 345 U.S. at 15
  4. Labor & Employment Law — Fair Labor Standards Act Where an administrative interpretation of a statute has been publicly revised and reported to Congress, and Congress declines to adopt proposed amendments that would neutralize the revised interpretation, the Court will not repudiate that interpretation. 345 U.S. at 17
ALSTATE CONSTRUCTION CO.v. DURKIN,345 U.S. 13(1953)
73 S.Ct. 565
ALSTATE CONSTRUCTION CO.v. DURKIN, SECRETARY OF LABOR.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT.
No. 296.
Argued February 2-3, 1953.
Decided March 9, 1953.
Petitioner produces in Pennsylvania a road-surfacing mixture made from materials bought or quarried in Pennsylvania. Most of it is used in Pennsylvania on interstate roads and railroads and on the improvement of facilities for companies producing goods for interstate commerce.Held:Petitioner's employees who do not work on the roads themselves but are engaged in the production of the road-surfacing mixture for the uses shown are engaged in the "production of goods for commerce" and are within the coverage of the Fair Labor Standards Act. Pp. 13-17.195 F.2d 577, affirmed.
The District Court enjoined petitioner from violating
the overtime and record-keeping provisions of the Fair
Labor Standards Act.95 F. Supp. 585. The Court of
Appeals affirmed.195 F.2d 577. This Court granted
certiorari.344 U.S. 895.Affirmed, p. 17.
Samuel A. Schreckengaust, Jr. argued the cause for petitioner. With him on the brief wasGilbert Nurick.Bessie Margolinargued the cause for respondent. With her on the brief wereSolicitor General CummingsandWilliam S. Tyson.Charles A. Horsky, W. Crosby Roper, Jr. andAmy RuthMahinfiled a brief for the National Sand Gravel Association, asamicus curiae, urging reversal.
MR. JUSTICE BLACK delivered the opinion of the Court.
Section 7(a) of the Fair Labor Standards Act requires employers to pay each employee covered by the Act not less than one and one-half times his regular pay rate forPage 14every hour worked in excess of a forty-hour week; § 11(c) requires employers to keep appropriate employment records.1Employees covered are defined as those "engaged in commerce or in the production of goods for commerce." We have held that employees repairing interstate roads or railroads are "engaged in commerce" within the meaning of that clause of § 7(a).2The question presented in this case is whether employees who work off such roads in the production of materials to repair them are engaged "in the production of goods for commerce" within the meaning of § 7(a).

The Wage and Hour Administrator sued in District Court to enjoin the petitioner Alstate Construction Company from violating the overtime and record-keeping provisions of the Act. The District Court found: Alstate is a Pennsylvania road contractor that reconstructs and repairs roads, railroads, parkways and like facilities in that state. The company also manufactures at three Pennsylvania plants a bituminous concrete road surfacing mixture called amesite made from materials either bought or quarried in Pennsylvania. Most of it is applied to Pennsylvania roads either by Alstate's own employees or by Alstate's customers. Eighty-five and one-half percent of Alstate's work here involved was done on interstate roads, railroads, or for Pennsylvania companies producing goods for interstate commerce, and 14 1/2% was done on projects that did not relate to interstate commerce. Alstate made no attempt to segregate payments to its employees on the basis of whether their work involved interstate or intrastate activities.Page 15

The District Court held that all of Alstate's employees were covered by the Act and granted the injunction prayed.95 F. Supp. 585. The Court of Appeals for the Third Circuit affirmed, holding that those employees of Alstate who worked on roads were "in commerce," and that its "off-the-road" plant employees were producing road materials "for commerce."195 F.2d 577. On similar facts, the Court of Appeals for the Eighth Circuit applied the Act to "off-the-road" employees.Tobinv.Johnson,198 F.2d 130. An opposite result was reached by the Tenth Circuit inE. C. Schroeder Co. v.Clifton,153 F.2d 385, and the Supreme Court of Pennsylvania inThomasv.Hempt Bros.,371 Pa. 383,89 A.2d 776. To settle this question we granted certiorari in this and theHempt Bros. case.344 U.S. 895.

Amesite is produced in Pennsylvania for use on Pennsylvania roads. None of it is manufactured with a purpose to ship it across state lines. For this reason, so Alstate contends, amesite is not produced "for commerce." Obviously, acceptance of this contention would require us to read "production of goods for commerce" as though written "production of goods for transportation in commerce" — that is, across state lines. Such limiting language did appear in the bill as it passed the Senate,3but Congress left it out of the Act as passed. Of course production of "goods" for the purpose of shipping them across state lines is production "for commerce." But we could not hold — consistently withOverstreetv.North Shore Corp.,318 U.S. 125, andPedersenv.FitzgeraldConstruction Co.,318 U.S. 740— that the only way to produce goods "for commerce" is to produce them for transportation across state lines.

In theOverstreetandPedersencases,supra, we had to decide whether employees engaged in repairing interstatePage 16roads and railroads were "in commerce." InOverstreetwe pointed out that interstate roads and railroads are indispensable "instrumentalities" in the carriage of persons and goods that move in interstate commerce. We then held that because roads and railroads are in law and in fact integrated and indispensable parts of our system of commerce among the states, employees repairing them are "in commerce." Consequently he who serves interstate highways and railroads serves commerce. By the same token he who produces goods for these indispensable and inseparable parts of commerce produces goods for commerce. We therefore conclude that Alstate's off-the-road employees were covered by the Act because engaged in "production of goods for commerce."

It is contended that we should not construe the Act as covering the "off-the-road" employees because it was given a contrary interpretation by its administrators from 1938 until 1945. During these first years after the Act's passage the administrator did take such a position. But more experience with the Act together with judicial construction of its scope4convinced its administrators that the first interpretation was unjustifiably narrow. He therefore publicly announced that off-the-road employees like these were protected by the Act. The new interpretation was reported to congressional committees on a number of occasions. Interested employers severely criticized the administrator's changes. Specific amendments were urged to neutralize his interpretation. Such neutralizing amendments were suggested to congressional committees by the National Sand and Gravel Association which has filed a brief beforePage 17us asamicus curiae.5Instead of adopting any of the suggestions to undermine the administrator's interpretation, Congress in a 1949 amendment to the Fair Labor Standards Act provided that all past orders, regulations and interpretations of the administrator should remain in effect "except to the extent that any such order, regulation, interpretation, . . . may be inconsistent with the provisions of this Act, or may from time to time be amended, modified, or rescinded by the Administrator . . . ."6

We decline to repudiate an administrative interpretation of the Act which Congress refused to repudiate after being repeatedly urged to do so.

There is an objection to the scope of the injunction, but we are satisfied with the Court of Appeals' treatment of this contention.Affirmed.
MR. JUSTICE DOUGLAS, with whom MR. JUSTICE FRANKFURTER concurs, dissenting.
The Court reasons that if the man who is building or repairing an interstate highway is "engaged in commerce," the one who carriers cement and gravel to him from a nearby pit is "engaged in the production of goods for commerce." Yet if that is true, how about the men who produce the tools for those who carry the cement and gravel or those who furnish the materials to make the tools used in producing the cement and gravel? Each would be essential to the highway worker "engaged in commerce." Yet the circle gets amazingly large once we say that "the production of goods for commerce" includes the "production of goods for those engaged in commerce." Cf.McLeodv.Threlkeld,319 U.S. 491.Page 18

A person who is maintaining or repairing interstate transportation facilities is "engaged in commerce."Overstreetv.North Shore Corp.,318 U.S. 125. A person who is creating articles destined for the channels of interstate commerce and all others who have such a close and immediate connection with the process as to be an essential or necessary part of it are engaged in "the production of goods for commerce." SeeKirschbaum Co. v.Walling,316 U.S. 517. If those who serve those "engaged in commerce" are also included, a large measure of cases affecting commerce are brought into the Act. Yet the history of the Act shows that no such extension of the federal domain was intended. SeeKirschbaumCo. v.Walling, supra, pp. 522-523. If those whose activities are necessary or essential to support those who are "engaged in commerce" are to be brought under the Act, I think an amendment of the Act would be necessary.Page 19
  1. Page 1452 Stat. 1060, as amended,63 Stat. 910, 912-913,29 U.S.C. § 207(a),211(c). ↩
  2. Page 14Overstreetv.North Shore Corp.,318 U.S. 125;Pedersenv.Fitzgerald Construction Co.,318 U.S. 740, reversing288 N.Y. 687,43 N.E.2d 83, on the authority ofOverstreetv.North Shore Corp.,supra. ↩
  3. Page 15 81 Cong. Rec. 7957. ↩
  4. Page 16Flemingv.Atlantic Co.,40 F. Supp. 654, affirmedsub nom. AtlanticCo. v.Walling,131 F.2d 518;Lewisv.Florida Power LightCo.,154 F.2d 751;Southern United Ice Co. v.Hendrix,153 F.2d 689;Chapmanv.Home Ice Co.,136 F.2d 353. ↩
  5. Page 17 See for illustration Hearings before Subcommittee No. 4 of House Committee on Education and Labor on H.R. 40, 80th Cong., 1st Sess. 1374-1375. ↩
  6. Page 1763 Stat. 910, 920. ↩