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WIRTZ v. HEALY

February 20, 1964

W. WILLARD WIRTZ, SECRETARY OF LABOR, UNITED STATES DEPARTMENT OF LABOR, PLAINTIFF,
v.
RAMONA HAYES HEALY AND JOHN F. HEALY, INDIVIDUALS AND PARTNERS, DOING BUSINESS AS VANDERBILT BETTER TOURS AND HAYES-HEALY TRAVEL BUREAU, DEFENDANTS.



The opinion of the court was delivered by: Obson, District Judge.

JUDGMENT

Plaintiff, W. Willard Wirtz, Secretary of Labor, United States Department of Labor, having filed his complaint, and the defendants, Ramona Hayes Healy and John F. Healy, individuals and partners, doing business as Vanderbilt Better Tours and Hayes-Healy Travel Bureau, having filed their answer to said complaint and the Court having considered the evidence and having made and entered appropriate Findings of Fact and Conclusions of Law, and sufficient reason therefor appearing,

Now, therefore, upon motion of the attorneys for plaintiff, it is

(1) The defendants shall not, contrary to Section 6 of the Act, pay any of their employees, including tour escorts, who in any workweek is engaged in commerce or in the production of goods for commerce within the meaning of the Act, wages at rates less than those prescribed by Section 6 of the Act (i. e., $1.25 an hour after September 2, 1963), or any other minimum rate which may be made applicable by amendment to the Act. The provisions of this paragraph shall not prevent defendants from paying to any of their employees wages authorized as to such employees by a special certificate issued and in effect under Section 14 of the Act;

(2) The defendants shall not, contrary to Section 7 of the Act, employ any of their employees, including tour escorts, who in any workweek is engaged in commerce or in the production of goods for commerce, within the meaning of the Act, for any workweek longer than forty hours, unless such employee receives compensation for his employment in excess of forty hours at a rate not less than one and one-half times the regular rate at which he is employed;

(3) The defendants shall not fail to make, keep, and preserve records of their employees, including tour escorts, and of the wages, hours, and other conditions and practices of employment maintained by them as prescribed by regulations of the Administrator of the Wage and Hour Division, United States Department of Labor, issued, and from time to time amended, pursuant to Section 11(c) of the Act, and found in 29 C.F.R. § 516;

(4) The defendants shall not, contrary to Sections 11(a), 11(c), and 15(a)(5) of the Act, fail to permit the authorized and designated representative of the Administrator of the Wage and Hour Division, United States Department of Labor, to inspect and transcribe therefrom, the records of their employees, including tour escorts, and the wages, hours, and other conditions and practices of employment maintained by them as prescribed by the regulations issued pursuant to Section 11(c) of the Act, and found in 29 C.F.R. § 516;

(5) The defendants shall not, contrary to Section 15(a)(1) of the Act, transport, offer for transportation, ship, deliver, or sell in commerce, as defined by the Act, or ship, deliver, or sell with knowledge that shipment or delivery or sale thereof in commerce is intended, any goods in the production of which any of their employees, including tour escorts, have been employed at rates of pay less than those provided by Sections 6 or 7 of the Act.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

The Court having considered the pleadings, the pre-trial conferences, the pre-trial order, the stipulations of the parties, the exhibits, the depositions, and the briefs and arguments submitted by respective counsel, and being fully advised in the premises, does hereby now make and enter, pursuant to Rule 52 of the Federal Rules of Civil Procedure, its Findings of Fact and Conclusions of Law as follows:

FINDINGS OF FACT

1. The defendants Ramona Hayes Healy and John F. Healy, individuals and partners, doing business as Vanderbilt Better Tours and Hayes-Healy Travel Bureau, are engaged in the travel agency business. The defendants obtain transportation, hotel and related accommodations for persons desiring to travel to various places and points of interest throughout the United States, Canada, and Europe. The defendants also operate and manage pre-paid conducted travel tours to places and points of interest throughout the United States, Canada, and Europe. These tours, known as the "Vanderbilt Better Tours," include both escorted and nonescorted tours. The defendants arrange, design, plan, and schedule the tours, and the tours are furnished to travelers as a "package." The price of each "package" tour includes such things as: the cost of transportation; hotel and other living accommodations; specified meals; designated sightseeing and side trips; enumerated tips; and the services of a tour manager, usually referred to as a "tour escort."

2. Defendants' office employees sell Vanderbilt Better Tours, and arrange for transportation, living accommodations, meals, and related facilities for travelers on defendants' tours, and for persons traveling independently. In connection with such activities, these employees order, purchase, receive, distribute and otherwise handle tickets, vouchers, coupons, and documents relating to transportation, living accommodations, meals, and related facilities included with defendants' tours. They also transmit and receive reports, documents, and the like to and from escorts on defendants' tours.

3. Defendants employ persons known as "tour escorts." These tour escorts are trained by defendants and are assigned to conduct one or more of defendants' escorted Vanderbilt Better Tours. These tour escorts travel with their assigned tour and handle all the details of such tour in accordance with specific instructions from defendants concerning the tour escorts' functions, duties, responsibilities, and activities. The tour escort, depending on the particular requirements of the assigned tour, starts and terminates his activities in connection with such tour in Chicago, or at a specified point enroute. The number of persons traveling with the escort on a particular tour usually averages about 15 or 20 persons.

4. The activities performed by the tour escort on defendants' tours include the following:

(a) The tour escort, who starts with the tour in Chicago, Illinois arrives at the designated railroad station approximately two hours before train time on the day of departure. He meets the passengers traveling on his tour as they begin to arrive, examines their baggage to see that it has been properly tagged and identified and, if necessary, tags and marks such baggage. The tour escort obtains all the railroad tickets from the defendants, and makes sure that all passengers have boarded the train and are settled in their assigned accommodations. On some tours, all tour members, including the tour escort, travel entirely by coach. On other tours, some of the tour members travel by Pullman.

(b) The tour escort, who joins the assigned tour enroute arrives at the designated rendezvous prior to the arrival of the incoming train, ascertains the estimated time of arrival, and awaits its arrival. When the tour arrives, the tour escort obtains from the designated representative of defendants the transportation tickets, vouchers, lists, documents, and instructions of defendants for the members of the tour. The tour escort examines and compares the tickets, vouchers and the like with the lists supplied by defendants, and reports any errors or omissions to the appropriate representative of the defendants. The tour escort counts the members of his tour and the baggage belonging to these members. The tour escort examines the baggage ...


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