Mitchell v. EG Shinner and Company, 11137.

Decision Date04 April 1955
Docket NumberNo. 11137.,11137.
PartiesJames P. MITCHELL, Secretary of Labor, v. E. G. SHINNER AND COMPANY, Inc.
CourtU.S. Court of Appeals — Seventh Circuit

Bessie Margolin, Asst. Solicitor, Harry M. Leet, Joseph M. Stone, U. S. Dept. of Labor, Stuart Rothman, Solicitor, U. S. Dept. of Labor, Washington, D. C., Herman

Grant, Regional Atty., Dept. of Labor, Chicago, Ill., for appellant.

Morris Karon, Milwaukee, Wis., for appellee.

Before MAJOR, SWAIM and SCHNACKENBERG, Circuit Judges.

SCHNACKENBERG, Circuit Judge.

This action was brought by the Secretary of Labor under Section 17 of the Fair Labor Standards Act of 1938, as amended, 29 U.S.C.A. § 217, to enjoin the defendant company from violating the overtime and record keeping provisions of said act. After a trial on the merits, the district court held that defendant's central office employees are not engaged in interstate commerce or in the production of goods for interstate commerce and, also, that they are exempt from the act because they are employed by a retail establishment within the exemption provided by Section 13(a)(2) of the act, 29 U.S.C.A. § 213(a)(2). Accordingly, the district court entered a final judgment dismissing the complaint.

The pertinent stipulated facts are substantially as follows:

The defendant company1, a Delaware corporation, is the owner and operator of 33 retail meat markets, of which 14 are in Illinois, 10 in Michigan, 7 in Wisconsin, and 2 in Iowa. Defendant employs approximately 230 employees in its 33 stores, of whom 94 are employed at the Illinois Stores, 67 in the Michigan stores, 55 in the Wisconsin stores, and 14 in the Iowa stores. Total sales by defendant's stores in 1951 amounted to nearly 10 million dollars, of which over 6 million represented sales by the stores located in Iowa, Wisconsin and Michigan.

Defendant also operates and maintains a central office at 733 West 64th Street, Chicago, Illinois. In addition to its executives and supervisors, defendant employs at the aforementioned central office 7 employees, consisting of an accounts receivable clerk, an accounts payable clerk, a bookkeeping machine operator, an accounts payable bookkeeper, a switchboard operator, a stenographer, and a sign painter. The central office is geographically separate from any of the retail meat markets, the nearest of which is ten miles away. All of the employees at the central office are engaged in the general operation of defendant's 33 retail meat markets, including the purchase of merchandise, accounting, clerical duties, maintenance of payroll records and related duties. No selling is done at the central office, nor is it open to the general consuming public.

More explicitly, the duties of the central office employees include the checking of daily reports and payrolls and verification of the calculations thereon, detaching bills for charge sales and holding them on file until a subsequent report shows that they have been paid, and checking receipts against cash disbursements (accounts receivable clerk); posting accounting records from the daily reports to the ledgers for each store, drawing up monthly trial balances for each ledger, and the posting of earnings from the payrolls of the stores to individual employees' earnings records (book-keeping machine operator); checking invoices for prices and the store manager's approval, sorting the invoices preliminary to the preparation of checks in payment...

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6 cases
  • Wirtz v. Keystone Readers Service, Inc.
    • United States
    • U.S. Court of Appeals — Fifth Circuit
    • November 14, 1969
    ...supra; Brewers, Inc. v. Wirtz, 5 Cir. 1967, 375 F.2d 911; Mitchell v. Kroger Co., 8 Cir. 1957, 248 F.2d 935; Mitchell v. E. G. Shinner and Company, 7 Cir. 1955, 221 F.2d 260; Bogash v. Baltimore Cigarette Service, 4 Cir. 1951, 193 F.2d 291; Walling v. Goldblatt Bros., 7 Cir. 1946, 152 F.2d ......
  • Futrell v. Columbia Club, Inc.
    • United States
    • U.S. District Court — Southern District of Indiana
    • August 2, 1971
    ...Shultz v. Adair's Cafeterias, Inc., 10 Cir., 1969, 420 F.2d 390; Mitchell v. Birkett, 8 Cir., 1961, 286 F.2d 474; Mitchell v. E. G. Shinner & Co., 7 Cir., 1955, 221 F.2d 260. These cases all dealt with multiple unit (chain) enterprises in which each location was held to be a single establis......
  • Wirtz v. Healy
    • United States
    • U.S. District Court — Northern District of Illinois
    • February 20, 1964
    ...S.Ct. 860, 99 L.Ed. 1196; Mitchell v. Lublin, McGaughy & Associates, 358 U.S. 207, 79 S.Ct. 260, 3 L.Ed.2d 243; Mitchell v. E. G. Shinner & Company, Inc., et al., 221 F.2d 260 (C.A.7); Bell v. Porter, 159 F. 2d 117 (C.A.7), certiorari denied, 330 U. S. 813, 67 S.Ct. 1092, 91 L.Ed. 1267; Mit......
  • Sucrs. De A. Mayol & Co. v. Mitchell, 5525.
    • United States
    • U.S. Court of Appeals — First Circuit
    • June 30, 1960
    ...connected with these goods while they were in commerce: (a) clerical help concerned with interstate shipments, Mitchell v. E. G. Shinner & Co., 7 Cir., 1955, 221 F.2d 260; Montgomery Ward & Co., Inc. v. Antis, 6 Cir., 1947, 158 F.2d 948, certiorari denied 331 U.S. 811, 67 S.Ct. 1202, 91 L.E......
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2 provisions
  • 29 C.F.R. § 779.118 Employees Providing Central Services For Multi-Unit Organizations
    • United States
    • Code of Federal Regulations 2023 Edition Title 29. Labor Subtitle B. Regulations Relating to Labor Chapter V. Wage and Hour Division, Department of Labor Subchapter B. Statements of General Policy Or Interpretation Not Directly Related to Regulations Part 779. The Fair Labor Standards Act As Applied to Retailers of Goods Or Services Subpart B. Employment to Which the Act May Apply: Basic Principles and Individual Coverage Employees Engaged In Commerce Or In the Production of Goods For Commerce
    • January 1, 2023
    ...U.S. 564, affirming, 128 F. 2d 935 (CA-5); Mitchell v. C. & P. Stores, 286 F. 2d 109 (CA-5); Mitchell v. E. G. Shinner & Co., Inc., 221 F. 2d 260 (CA-7); Donovan v. Shell Oil Co., 168 F. 2d 776 (CA-8).) In addition, employees who regularly and recurrently correspond and maintain records of ......
  • 29 C.F.R. § 779.118 Employees Providing Central Services For Multi-Unit Organizations
    • United States
    • Code of Federal Regulations 2022 Edition Title 29. Labor Subtitle B. Regulations Relating to Labor Chapter V. Wage and Hour Division, Department of Labor Subchapter B. Statements of General Policy Or Interpretation Not Directly Related to Regulations Part 779. The Fair Labor Standards Act As Applied to Retailers of Goods Or Services Subpart B. Employment to Which the Act May Apply: Basic Principles and Individual Coverage Employees Engaged In Commerce Or In the Production of Goods For Commerce
    • January 1, 2022
    ...U.S. 564, affirming, 128 F. 2d 935 (CA-5); Mitchell v. C. & P. Stores, 286 F. 2d 109 (CA-5); Mitchell v. E. G. Shinner & Co., Inc., 221 F. 2d 260 (CA-7); Donovan v. Shell Oil Co., 168 F. 2d 776 (CA-8).) In addition, employees who regularly and recurrently correspond and maintain records of ......

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