Mabee v. White Plains Publishing Co.

1946-02-11

Headline: Local daily newspaper ruling: Court reversed and held that small regular out-of-state shipments bring such newspapers under federal wage-and-hour law, making overtime rules enforceable against them.

Holding: The Court reversed the state appellate ruling and held that a local daily newspaper that regularly ships a small number of copies out of state produces goods for interstate commerce, so it cannot be excluded by a de minimis rule.

Real World Impact:

Makes small daily newspapers potentially subject to federal overtime and minimum wage rules.
Stops courts from excluding businesses based solely on tiny interstate sales.
Leaves whether these specific employees qualify for protection to lower courts on remand.

Topics: wage and hour, interstate commerce, small newspapers, overtime pay

Summary

Background

A White Plains, New York, daily newspaper printed about 9,000–11,000 copies a day and regularly sent about 45 copies (roughly one-half of one percent) out of state. Some of the paper’s employees sued in New York courts seeking unpaid overtime, liquidated damages, and fees under the Fair Labor Standards Act (FLSA). The trial court favored the employees, the state appellate division dismissed the suit applying a de minimis rule, and the state court of appeals affirmed that dismissal. The Supreme Court granted review because lower courts had reached different results on this issue.

Reasoning

The central question was whether tiny but regular out-of-state shipments put the newspaper within the FLSA or whether courts should exclude it under a de minimis rule. The Court said Congress placed no volume-based limit in the statute and had forbidden shipment in commerce of "any goods" produced in violation of the Act. The Court also noted a specific exemption for certain small weekly papers, which showed Congress knew how to carve out categories but did not limit coverage by small interstate volume. The Court therefore held the newspaper was engaged in producing goods for interstate commerce and reversed the state appellate decision. The Justices did not decide whether the particular employees were covered by the Act because the state courts had not addressed that question.

Real world impact

Small daily newspapers that regularly ship even a tiny number of copies out of state may be treated as producing goods for interstate commerce and can fall under federal wage-and-hour rules. This decision is not a final ruling on whether the named employees are entitled to overtime; that factual and legal question goes back to the lower courts for further consideration.

Dissents or concurrances

Justice Murphy dissented, arguing that a business that is overwhelmingly local should be treated as local and that Congress likely intended to leave such small-scale local businesses outside the FLSA’s reach.