United States Supreme Court Cases & Opinions

U.S. Supreme Court

Goldberg v. Whitaker House Cooperative, Inc., 366 U.S. 28 (1961)

Goldberg v. Whitaker House Cooperative, Inc.

No. 274

Argued March 30, 1961

Decided April 24, 1961

366 U.S. 28

Syllabus

Respondent is a cooperative incorporated to manufacture, sell and deal in knitted, crocheted and embroidered goods. Its members make such goods in their homes and deliver them to the cooperative, which pays them periodically "an advance allowance" pending sale of the goods and distribution of any net proceeds to the members. The members manufacture what the cooperative desires, receive the compensation it dictates, and may be expelled from membership for substandard work or failure to obey the cooperative's regulations.

Held: the cooperative is an "employer" and its members are "employees" within the meaning of § 3 of the Fair Labor Standards Act of 1938, as amended, and the cooperative is subject to the minimum wage and recordkeeping provisions of the Act and the regulations prescribed by the Administrator under §11(d) "to prevent the circumvention or evasion of and to safeguard the minimum wage rate" prescribed by the Act. Pp. 366 U. S. 28-33.

275 F.2d 362 reversed.