Goldberg

Section 17 of the Fair Labor Standards Act ( 29 U.S.C.A. § 217 ) authorizes the district court to enjoin violations of the minimum wage, record keeping and shipping provisions of the Act. The Secretary of Labor brought this action, under Section 17, to obtain such injunctive relief. This court has jurisdiction over the appeal. 28 U.S.C. § 1291 .

Appellees operate a “letter shop.” Theirs is a service enterprise which involves the addressing, stuffing and mailing of letters for various business establishments. The court below found that appellees’ business operation comes under the Fair Labor Standards Act since its employees (who do their work at home) produce goods for interstate commerce. The issue was whether appellees’ business is taken out of the Act by the exemption provisions of Section 13(a) (2) ( 29 U.S.C.A. § 213 (a) (2)). To qualify for the exemption under Section 13(a), as amended in 1949, appellees must meet three tests:

1. Fifty per cent of the annual dollar volume of sales (of goods and/or services) must be made within the state. It is conceded that this test has been met.

2. Seventy-five per cent of the sales volume must not be for resale. This test, concededly,…