Monday, October 5, 2015

Sixth Circuit Finds Industrial Worm Farming Fits Within FLSA Agricultural Exemption

I will start this article with a disclaimer.  I’m a committed gardener and grew up in an agricultural community.  So, the fact that the Sixth Circuit issued a reported decision last week finding --  unremarkably —that worm farming is an agricultural activity for purposes of the FLSA exemption is pretty funny to me.  Barks v.  Silver Bait LLC, No. 15-5175 (6th Cir. 10-2-15).    I would not have believed that this could be seriously debated.  And, indeed, the DOL and trial court reached the same conclusion, although it is unclear to me why this case went to trial and was not resolved on summary judgment.  Nonetheless, if you are interested in gardening or agriculture, this decision is still fascinating as it describes industrial bait worm farming on a scale that I had never before imagined.  From an employment law perspective, the Court confirmed that the agricultural exemption is not subject to the same narrow construction as the white-collar exemptions.  The FLSA’s definition of “agriculture” encompasses the entire field of agriculture, including both primary farm activities (i.e., growing, feeding, harvesting, etc.) and secondary farming activities (such as market preparation).  Accordingly, the employees of the worm farm were not entitled to overtime compensation except for a four-week period when the employer was engaged in wholesaling activities.  

According to the Court’s opinion, the employer imports from Europe several one-ton truckloads of baby worms every year, feeds and raises them, and then annually sells approximately 21 tons of bait worms once they are large enough to package and sell.  During an isolated four-week period, the employer received, packaged and sold adult bait worms and this was found to be non-exempt wholesaling activity by the Department of Labor because they did not feed or raise the worms which were sold.  However, that period was not the subject of the litigation.   The plaintiffs filed suit seeking unpaid overtime compensation.
The FLSA exempts “employees employed in agriculture.”  The Act defines agriculture as follows:

“Agriculture” includes farming in all its branches and among other things includes the cultivation and tillage of the soil, dairying, the production, cultivation, growing, and harvesting of any agricultural or horticultural commodities (including commodities defined as agricultural commodities in section 1141j(g) of Title 12), the raising of livestock, bees, fur-bearing animals, or poultry, and any practices (including any forestry or lumbering operations) performed by a farmer or on a farm as an incident to or in conjunction with such farming operations, including preparation for market, delivery to storage or to market or to carriers for transportation to market.

29 U.S.C. § 203(f).  Unlike statutory exemptions, the FLSA definitions section is not subject to a narrow construction.  Accordingly, the Supreme Court held in 1955 that this “embraces the whole field of agriculture” and later described the agricultural exemption as “far-reaching.”   The definition includes primary agricultural activities, such as growing, feeding, harvesting, etc., and also secondary agricultural activities, such as storage, delivery, market preparation, etc.

The parties agreed that the defendant employer was in the business of growing and raising worms.  The plaintiffs unsuccessfully attempted to argue that worms are not like livestock, poultry or fish, and should not be considered an agricultural commodity.  However, while “raising worms is not a traditional subject of agriculture [it] still falls within the margins of the term’s ordinary meaning as involving the production of animals useful to man and the preparation of products for man’s use.”  Worms would superficially appear to be an agricultural commodity, but the FLSA regulations exclude activities related to certain naturally occurring commodities, such as “the gathering or harvesting of wild commodities such as mosses, wild rice, burls and laurel plants, the trapping of wild animals, or the appropriation of minerals and other uncultivated products from the soil.” 29 C.F.R. § 780.114.  While Christmas trees, and pine moss are an agricultural commodity covered by the FLSA exemption, peat moss is not.  Bees are expressly covered, but worms are never mentioned in the statute or the regulation.  Thus, gathering wild worms to sell for fish bait might arguably not be an agricultural commodity, but raising imported baby worms would seem to be covered.   

The Court ultimately relied on the common sense and traditional meaning of farming to find raising worms to be a covered agricultural activity.  While the worms were being raised for fish bait instead of for human consumption, that distinction was immaterial.  Lots of produce is raised to feed livestock instead of people and that does not affect its characterization as agricultural.  Moreover, the worms were being raised on a traditional (yet industrial) farm.  The employer “houses the worms, feeds them, monitors their growth, and eventually harvests them.”  
 

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can be changed or amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.