Peter J. Brennan, Secretary of Labor, United States Department of Labor v. Valley Towing Co., Inc., a Corporation and Robert Dyar

This is an appeal from a final judgment refusing to enjoin alleged violations of the overtime compensation and record keeping provisions of the Fair Labor Standards Act [ 29 U.S.C. §§ 201 et seq. (1970)], and to order payment of over $18,000 in unpaid overtime compensation said to be due individual employees of defendant corporation. After a full hearing, the district court concluded that the company’s compensation scheme was in compliance with the Act, and that a back pay award on behalf of the company’s employees who had worked in excess of the statutory maximum workweek of forty hours between 1969 and 1971 was therefore unwarranted. The district court concluded also that “[t]he evidence failfed] to show inadequacy of the books and records of defendants under applicable law and regulation.” We affirm in part, reverse in part, and remand for further proceedings.

The Secretary of Labor sued under § 217 of the FLSA, which gives the district courts jurisdiction to restrain violations of § 215 of the Act. In turn, §§ 215(a)(2) and 215(a)(5) respectively make unlawful non-compliance with § 207’s provisions for premium overtime compensation, and with regulations regarding…