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Content Last Revised: 11/18/47
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CFR  

Code of Federal Regulations Pertaining to ESA

Title 29  

Labor

 

Chapter V  

Wage and Hour Division, Department of Labor

 

 

Part 790  

General Statement As to the Effect of the Portal-to-Portal Act of 1947 on the Fair Labor Standards Act of 1938


29 CFR 790.10 - ``Compensable * * * by a custom or practice.''

  • Section Number: 790.10
  • Section Name: ``Compensable * * * by a custom or practice.''

    (a) A ``preliminary'' or ``postliminary'' activity of the type 
described in section 4(a) of the Portal Act may be ``compensable'' 
within the meaning of section 4(b), by a custom or practice as well as 
by a contract. If it is so compensable, the relief afforded by section 4 
is not available to the employer with respect to such activity,74 
and section 4(d) does not operate to exclude the time spent in such 
activity from hours worked under the Fair Labor Standards Act.75 
Accordingly, in the event that no ``express provision of a written or 
nonwritten contract'' makes compensable the activity in question, it is 
necessary to determine whether the activity is made compensable by a 
custom or practice, not inconsistent with such a contract, in effect at 
the establishment or other place where the employee was employed.76
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    74 See Sec. 790.4.
    75 See Secs. 790.5 and 790.7.
    76 See Senate Report, p. 49.
    The same is true with respect to the activities referred to in 
section 2 of the Portal Act in an action or proceeding relating to 
activities performed before May 14, 1947. See Senate Report, p. 45. See 
also Sec. 790.23.
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    (b) The meaning of the word ``compensable'' is the same, for 
purposes of the statute, whether a contract or a custom or practice is 
involved.77
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    77 See Sec. 790.9(b).
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    (c) The phrase, ``custom or practice,'' is one which, in common 
meaning, is rather broad in scope. The meaning of these words as used in 
the Portal Act is not stated in the statute; it must be ascertained from 
their context and from other available evidence of the Congressional 
intent, with such aid as may be had from the many judicial decisions 
interpreting the words ``custom'' and ``practice'' as used in other 
connections. Although the legislative history casts little light on the 
precise limits of these terms, it is believed that the Congressional 
reference to contract, custom or practice was a deliberate use of non-
technical words which are commonly understood and broad enough to cover 
every normal situation under which an employee works or an employer for 
compensation.78 Accordingly, ``custom'' and ``practice,'' as 
used in section 4(b) of the Portal Act, may be said to be descriptive 
generally of those situations where an employer, without being compelled 
to do so by an express provision of a contract, has paid employees for 
certain activities performed. One of the sponsors of the legislation in 
the House of Representatives indicated that the intention was not only 
``to protect every collective bargaining agreement about these 
activities'' but ``to protect the agreement between one workman and his 
employer'' and ``every practice or custom which we assume must have 
entered into the minds of the people when they made the contract.'' 
79
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    78 See colloquy between Senators Donnell and Tydings, 93 Cong. 
Rec. 2125, 2126; colloquy between Senators Donnell, Lodge, and Hawkes, 
93 Cong. Rec. 2178, 2179; colloquy between Senators Donnell and Hawkes, 
93 Cong. Rec. 2181, 2182. Statements of Senator Cooper, 93 Cong. Rec. 
2293.
    79 Statements of Representative Gwynne, 93 Cong. Rec. 
1566.
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    (d) The words, ``custom or practice,'' as used in the Portal Act, do 
not refer to industry custom or the habits of the community which are 
familiar to the people; these words are qualified by the phrase ``in 
effect * * * at the establishment or other place where such employee was 
employed.'' The compensability of an activity under custom or practice, 
for purposes of this Act, is tested by the custom or the practice at the 
``particular place of business,'' ``plant,'' ``mine,'' ``factory,'' 
``forest,'' etc.80
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    80 Senate Report, p. 45; colloquy between Senators Donnell and 
Hawkes, 93 Cong. Rec. 2179.
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    (e) ``The custom or practice'' by which compensability of an 
activity is tested under the statute is one ``covering such activity.'' 
Thus, a custom or practice to pay for washing up in the plant after the 
end of the workday, for example, would not necessarily establish the 
compensability of walking time thereafter from the washroom in the plant 
to the plant gate. It is enough, however, if there is a custom or 
practice covering ``such activity''; there is no provision, as there is 
with regard to contracts, that the custom or
practice be one ``between such employee, his agent, or collective-
bargaining representative, and his employer.'' 81
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    81 See Sec. 790.9(d).
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    (f) Another qualification of the ``custom or practice'' referred to 
in the statute is that it be ``not inconsistent with a written or non-
written contract'' of the kind mentioned therein. If the contract is 
silent on the question of compensability of the activity, a custom or 
practice to pay for it would not be inconsistent with the 
contract.82 However, the intent of the provision is that a 
custom or practice which is inconsistent with the terms of any such 
contract shall not be taken into account in determining whether such an 
activity is compensable.83
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    82 Senate Report, pp. 45, 49; colloquy between Senators 
Donnell and Hawkes, 93 Cong. Rec. 2179.
    83 Senate Report, pp. 45, 49.
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