Kam Koon Wan v. E. E. Black, Limited

Plaintiffs brought suit under the Fair Labor Standards Act of 1938, 52 Stat. 1060 , as amended, 29 U.S.C.A. § 201 et seq. for overtime benefits allegedly accruing to them during the six-year period preceding November 14, 1945, the date of commencement of the action. 28 U.S.C.A. § 1337 .

Defendant denied that the activities for which overtime compensation was sought were within the coverage of the Act, and alleged that in any event plaintiffs had been paid time and one-half for all overtime since November 10, 1943.

Following enactment of the Portal-to-Portal Act of 1947 plaintiffs amended their complaint to allege facts requisite to jurisdiction of the subject matter. 61 Stat. 85 , 29 U.S.C.A. § 252 ; Tipton v. Bearl Sprott Co., 9 Cir., 1949, 175 F.2d 432, 436 . Defendant thereupon amended its answer to assert that plaintiffs’ claims for the period December 7, 1941 to November 10, 1943 were barred by § 9 of the Portal-to-Portal Act, 61 Stat. 88 , 29 U.S.C.A. § 258 , since defendant’s failure to pay overtime compensation required by the Fair Labor Standards Act during that period was “in good faith in conformity with and in reliance on” the orders of the Military Governor of…