U.S. Supreme Court
Mitchell v. Budd, 350 U.S. 473 (1956)
Mitchell v. Budd
Argued February 29-March 1, 1956
Decided March 26, 1956
350 U.S. 473
The Secretary of Labor sued under § 17 of the Fair Labor Standards Act to enjoin respondents from violating the minimum wage and recordkeeping provisions of the Act with respect to employees working in their tobacco bulking plants in Quincy, Florida, which has a population in excess of of 2,500. The bulking process takes from 4 to 8 months, requires a large amount of equipment, and substantially changes the physical properties and chemical content of the tobacco. Most farmers in the region have their tobacco processed by others. Two of the respondents process only tobacco grown on their own farms, and the third processes only tobacco grown by others.
Held: respondents are not exempted by § 13(a)(10) or § 13(a)(6) from the minimum wage and recordkeeping provisions of the Act. Pp. 350 U. S. 474-482.
(a) The Administrator's definition of "area of production," within the meaning of § 13(a)(10), as including only plants located "in the open country or in a rural community . . . not including any city, town or urban place of 2,500 or greater population" and within a specified mileage distance from the source of 95% of its commodities, is sustained. Pp. 350 U. S. 476-480.
(b) Even when done by the grower, the bulking process is not "preparation for market," within the meaning of § 3(f), and therefore not within the agricultural exemption of § 13(a)(6). Pp. 350 U. S. 480-482.
221 F.2d 406 reversed.
114 F.Supp. 865 affirmed. chanroblesvirtualawlibrary