Walling v. Wm. Schollhorn Co., 1008.
| Decision Date | 23 March 1944 |
| Docket Number | No. 1008.,1008. |
| Citation | 54 F. Supp. 1022 |
| Court | U.S. District Court — District of Connecticut |
| Parties | WALLING, Administrator of Wage and Hour Division, U. S. Dept. of Labor, v. WM. SCHOLLHORN CO. |
Irving Rozen, Regional Atty., U. S. Dept. of Labor, of New York City, for plaintiff.
Herbert C. Smythe, of New York City (now deceased), by Herbert C. Smythe, Jr. (of Wellman, Smythe, Lowenstein & Fennelly) of New York City, for defendant.
The question for decision in this case is the interpretation of the overtime section of the Fair Labor Standards Act of 1938, 29 U.S.C.A. § 201 et seq., specifically, the meaning of "regular rate" in Section 7(a) of the Act, 29 U.S.C.A. § 207(a), which provides that an employee may not be employed for a workweek longer than forty hours unless the employee receives compensation for his employment in excess of forty hours "at a rate not less than one and one half times the regular rate at which he is employed." The contract between the employer in this case and the union of its employees entered into September 15, 1942, includes the following provision:
In arriving at the overtime pay of its employees, the company has considered the regular rate for those on the night shift as not including the five cents per hour payment paid to its night shift employees under this provision of the union contract. It is the contention of the Wage and Hour Administrator that the five cent payment denominated in the contract as a "bonus" for night shift work is part of the regular rate of pay of employees on the night shift, and should be included in the basis of computation of overtime pay for work in excess of forty hours per week on the night shift as part of the regular rate of pay.
It appears that the employer has included the night shift bonus in its returns of compensation paid its employees for the purpose of the Victory Tax, both taxes under the Social Security Act, 42 U.S.C.A. § 301 et seq., information returns on its employees' income, and expenses of production in its own corporate income tax return. It was also included in the amount stated on its pay envelopes as gross pay before Victory Tax and bond purchase deductions.
The corporation did not include the night bonus or overtime pay in its returns to...
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Aaron v. Bay Ridge Operating Co.
...by dividing the wages actually paid by the hours actually worked." See also Ferren v. Waterman S. S. Co., supra; cf. Walling v. Wm. Schollhorn Co., 54 F.Supp. 1022. The Administrator's Press Release 1913 stated that theretofore, where an employee received more than one rate during a workwee......
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