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Aaron Huron Stevedoring Corporation Argued: Jan 12, These cases present another aspect of the perplexing problem of what constitutes the regular rate of pay which the Fair Labor Standards Act requires to be used in computing the proper payment for work in excess of forty hours.
The applicable provisions read as follows: The claims of the plaintiffs here are for the period October 1,to September 30, The terms of employment for the respondents, longshoremen working in the Port of New York, were fixed for the period in question by the collective bargaining agreement between the International Longshoremens Association and the New York Shipping Association together with certain steamship and stevedore companies.
It was applicable to the two petitioners. The agreement established a 'basic working day' of eight hours and a 'basic working week,' that is, workweek, of forty-four hours; hourly rates for different types of cargo were specified for work between 8 a.
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The first schedule was called 'straight time' rates, and the second schedule was entitled 'overtime' rates. This opinion designates these rates as contract straight time and contract overtime. For four types of cargo the overtime rates were exactly one and a half times the straight time rates; for four other types the overtime rates were slightly less than one and a half times the straight time rates.
The contract overtime rates were paid for all work on Sundays and legal holidays. The contract provided for no differential for work in excess of forty hours in a week.
That is, no rates except straight time rates are to be taken into consideration in computing the regular rate. The petitioners contend that the contract overtime rates were intended to cover any earned statutory excess compensation and did cover it because they were substantially in an amount of one and one-half times the straight time rates.
The District Court held that the contract straight time rates were the regular rates but the Circuit Court of Appeals for the Second Circuit held otherwise. Substantially all stevedoring during the war years was performed for the account of the United States. The Solicitor General notes that prior to the decision in the Circuit Court of Appeals, suits had been The huron corporation company on behalf of longshoremen, and since that time approximately new complaints have been filed.
Contracts of the same general type are said to have been in effect in all our maritime areas. Witnesses testifying before the Wages and Hours Subcommittee of the House Committee on Education and Labor stated that liability of the Government under such suits would be large.
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In order to fix the legal issues in their factual setting, we summarize the findings of fact made by the District Court which were accepted by the Circuit Court of Appeals and are not challenged here.
Most of these findings referred to in this opinion will be found in the Appendix at F. Employment in the longshore industry has always been casual in nature.
The amount of work available depends on the number of ships in port and their length of stay and is consequently highly variable and unpredictable, from day to day, week to week, and season to season.
Longshoremen are hired for a specific job at the 'shape,'  which is normally held three times a day at each pier where work is available. The hiring stevedore selects the men he desires from the longshoremen who are present at the 'shape'; in some instances a group of longshoremen are hired together as a gang.
The work may last only for a few hours or for as long as a week. Although some work is carried on at all hours, the stevedoring companies, since operations are then carried on at less cost, attempt to do as much work as possible during the straight time hours.
Ryan, President of the Association, testified that the differential was designed to shorten the total number of hours worked and to confine the work as far as possible within the scheduled forty-four hours. Despite the differential, many longshoremen were unwilling to work at night.
Although some longshore work was required at all hours, except Saturday night, the District Court found that the differential had been responsible for the high degree of concentration of longshore work to the contract straight time hours.
The government introduced elaborate statistical studies to show the distribution of work as between the contract straight time and contract overtime hours. The respondents' employment was highly irregular; in many weeks the respondents did not work at all, and in weeks in which they did work their hours of employment varied over a wide range.
The trial court concluded that the 'basic working day' and 'basic working week,'  meaning by these phrases the contract straight time hours, were not the periods 'normally, regularly, or usually' worked by the respondents.
In giving judgment for the petitioners, the trial court placed emphasis on the fact that the rates in question were arrived at through bona fide collective bargaining, and were more favorable to the longshoremen than the statutory mandate required.
The District Court opinion referred to Joseph B. Ryan's statement that the International Longshoremens Association was opposed to the suit 'as it might wipe out all of the gains we had made for our men over a period of 25 years,'  It rejected respondents' alternative contentions that the regular rate was to be determined by the average rate during the first forty hours or by the average rate for all hours worked.
Accordingly the trial court concluded that the 'collectively bargained agreement established a regular rate' under the Fair Labor Standards Act-the contract straight time rate.
The Circuit Court of Appeals held that the regular rate must be determined as an 'actual fact' and could not be arranged through a collective bargaining agreement, citing Madison Ave.
That court therefore concluded that on the basis of the findings below the regular rate must be computed by dividing the total number of hours worked into the total compensation received.
The court rejected the contention that the regular rate was the average rate for the first forty hours of work, citing Walling v. Halliburton Oil Well Cementing Co. The judgment of the District Court was reversed with directions to determine the amounts due plaintiffs in the light of the Portal-to-Portal Act of61 Stat.
No determination of the scope or validity of that act was attempted as those matters had not been argued. On account of the importance of the method of computing the regular rate of pay in employment contracts providing for extra pay, we granted certiorari.
The government accepts, too, the reasoning of the District Court that the contract overtime rates, as they were coercive in the sense that they were intended to exert pressure on employers to carry on their activities in the straight time hours, were not regular rates and could be credited against required statutory excess compensation in the amount that the contract overtime rates exceeded the contract straight time rates.Located in Huron, OH, Geo Corporation Inc is in the paper products wholesale business.
Operating for 10 or more years, they have an annual income of $5 to 10 million. Geo Corporation Inc is considered a small business with 10, to 49, square footage of space. Photo Gallery of products and projects. Huron Sign Company South Mansfield • Ypsilanti, MI • Mailing Address: P.O.
Box # • Ypsilanti, MI Dec 20, · Huron Stevedoring Corp., 69 attheheels.com ; Aaron v. Bay Ridge Operating Co., F.2d ^7 Mr.
Walter E. Maloney, representing the National Federation of American Shipping, testified that liability to the Government on stevedoring contracts might run as high as $,,, although he admitted that the amount of liability was 'almost. Raabe Corporation is a Milwaukee-based manufacturer of custom matched touch-up paints and private label aerosol and liquid coating products.
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