Walling v. Nashville, Chattanooga & St. Louis Ry.
The case determines whether railway trainees ("cubs" and "posters") are considered "employees" under the Fair Labor Standards Act of 1938. The plaintiff Administrator sought injunctive relief to compel the defendant railway to comply with the Act for these trainees, arguing they should be compensated and records kept. The court found that trainees primarily work for their own benefit and receive no measurable benefit for the company, thus lacking a contract of employment. Payments made to "cub" trainees were deemed gratuities or incentive pay, not wages that would establish an employer-employee relationship. Consequently, the court held that neither "cub" nor "poster" trainees are "employees" under the Act, and even if they were, the company's current practices largely comply with the Act. Therefore, judgment was entered for the defendant railway, denying the Administrator's request for injunctive relief.