Walling v. Portland Terminal Company

Supreme Court of the United States · 1947 · Corporations

330 U.S. 148 (1947)

Updated August 22, 2026

CorporationsFair Labor Standards ActEmployeesTraineesFLSAemployee definitionsuffer or permit to worklearners

Facts

The respondent railroad gave prospective yard brakemen a practical training course that applicants had to complete before they could be entrusted with brakemen's duties. During the average seven- or eight-day course, trainees observed yard crews and gradually performed some actual work under close supervision. Their activities did not displace regular employees, who continued to do most of the work and had to stand by immediately to supervise the trainees; the trainees' work did not expedite the railroad's business and sometimes impeded it. Trainees received no pay during training except that, during the war period, those who later proved competent and were listed as available for work received a retroactive contingent allowance of $4 per day for the training period.

Issue

Whether prospective brakemen who underwent the railroad's unpaid practical training course were "employees" within the meaning of the Fair Labor Standards Act, so that the railroad was required to pay them minimum wages and keep wage records.

Rule

The Fair Labor Standards Act's definitions of "employ" and "employee" do not make every person an employee merely because he works on another's premises. A trainee is not an employee under the Act when, without any express or implied compensation agreement, his work serves only his own interest and the employer receives no immediate advantage from the work performed.

See the holding & full analysis

Create a free KwikCourt account to unlock the rest of this brief — and practice the case.

The court's holding and reasoning
Doctrine tests, pitfalls & exam hypotheticals
10 practice questions + 4 AI-graded essays on this case

Free sample · practice this case

Test yourself

One of 10 multiple-choice questions for this case. Pick an answer to see why.

In Cleveland, Lakefront Freight Lines requires applicants for dock-loader jobs to complete a six-day unpaid practical course. During the course, applicants mostly observe veteran crews, occasionally lift and sort cargo under constant supervision, do not replace any regular workers, and often slow the loading process because supervisors must stop to correct them.

Under the Fair Labor Standards Act as interpreted by the Supreme Court's majority rule, are the applicants most likely employees during the six-day course?

Explanation. The majority held that not every person allowed to work on another's premises is an employee. Where there is no express or implied compensation agreement, the training serves the trainee's own interest, the trainees do not displace regular workers, and the employer receives no immediate advantage—and may even be impeded—the trainees are not employees under the Act.