Amicus Curiae Brief — Signet Builders, Inc., Petitioner v. Jose Ageo Luna Vanegas
Supreme Court briefApr 10, 2023
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No. 22-869
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In The
Supreme Court of the United States
---------------------------------♦--------------------------------SIGNET BUILDERS, INC.,
v.
Petitioner,
JOSE AGEO LUNA VANEGAS,
Respondent.
---------------------------------♦--------------------------------On Petition For Writ Of Certiorari
To The United States Court Of Appeals
For The Seventh Circuit
---------------------------------♦--------------------------------BRIEF OF AMICI CURIAE AG INSTALLERS, INC.,
ALEWELT CONCRETE INC., ALTENBURG
CONSTRUCTION INC., BOADWINE FARMS, INC.,
DREW BRANDT CONSTRUCTION, INC., SUMMIT
HEARTLAND, LLC D/B/A HEARTLAND
BUILDERS CO., J N J CONSTRUCTION INC.,
KOHLNHOFER FARMS, INC., LIONHEART
CONSTRUCTION, LLC, LONGHORN CATTLE &
SWINE CONFINEMENT SYSTEMS, INC., R&R
CHRISTO CONSTRUCTION LLC, REICKS VIEW
FARMS, L.L.C., AND SPARTANS AGRICULTURAL
BUILDERS, INC. IN SUPPORT OF PETITIONER
---------------------------------♦--------------------------------NOWELL D. BERRETH
Counsel of Record
KRISTI BOSWELL
BRYAN W. LUTZ
FIONA O’CARROLL
DANIELLE K. GOLDSTEIN
ALSTON & BIRD LLP
1201 West Peachtree Street NW
Atlanta, Georgia 30309
Tel: 404-881-7000
nowell.berreth@alston.com
Counsel for Amici Curiae
April 10, 2023
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COCKLE LEGAL BRIEFS (800) 225-6964
WWW.COCKLELEGALBRIEFS.COM
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TABLE OF CONTENTS
Page
STATEMENT OF INTEREST .............................
1
SUMMARY OF ARGUMENT ..............................
6
ARGUMENT ........................................................
9
I.
On-farm construction of livestock confinement structures is a commonsense example of secondary agriculture under the
FLSA ..........................................................
9
A. On-farm construction of livestock confinement structures is performed “as
an incident to or in conjunction with”
farming ................................................ 10
B. On-farm construction of livestock confinement structures is dictated by
farming timetables and is otherwise
seasonal ............................................... 15
II.
The Seventh Circuit’s erroneous decision
could have far-reaching and damaging
consequences ............................................. 19
A. The Seventh Circuit’s decision could
subject agricultural construction companies to inappropriate overtime requirements ........................................... 21
B. The Seventh Circuit’s decision could
spawn litigation with needless and
costly discovery .................................... 22
ii
TABLE OF CONTENTS – Continued
Page
C. Because the Seventh Circuit’s decision
conflicts with the DOL’s longstanding
view of agricultural construction as
“agriculture,” it threatens the agricultural construction industry’s reliance
on the H-2A visa program ................... 23
CONCLUSION..................................................... 27
iii
TABLE OF AUTHORITIES
Page
CASES
Bayside Enters., Inc. v. NLRB,
429 U.S. 298 (1977) ...................................................9
Bills v. Cactus Family Farms, LLC,
5 F.4th 844 (8th Cir. 2021) ......................................14
Maneja v. Waialua Agric. Co.,
349 U.S. 254 (1955) ........................................... 11, 14
STATUTES
8 U.S.C. § 1101 ............................................................23
26 U.S.C. § 3121 ..........................................................23
29 U.S.C. § 203 .................................................. 7, 10, 18
29 U.S.C. § 213 ..............................................................9
REGULATIONS
29 C.F.R. § 780.136 .....................................................10
29 C.F.R. § 780.144 .....................................................10
OTHER AUTHORITIES
81 Cong. Rec. 7652 (1937) ...........................................18
Cash Receipts by Commodity State Ranking,
Econ. Rsch. Serv. U.S. Dep’t of Agric. (last
visited Feb. 6, 2022) ................................................21
iv
TABLE OF AUTHORITIES—Continued
Page
David J. Bier, H-2A Visas for Agriculture: The
Complex Process for Farmers to Hire Agricultural Guest Workers (Mar. 10, 2020) ..................19
NPR, Millions of Pigs Will Be Euthanized As
Pandemic Cripples Meatpacking Plants (May
14, 2020) ..................................................................16
Skyler Simnitt & Marcelo Castillo, Use of H-2A
Guest Farm Worker Program More Than
Triples in Past Decade, Econ. Rsch. Serv. U.S.
Dep’t of Agric. (Sept. 7, 2021)..................................20
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STATEMENT OF INTEREST1
The barn raising tradition of centuries past has
given way to specialized construction by companies
that farmers hire to build large, modern barns and
other livestock confinement structures on farms. This
case is about the necessary role that agricultural construction plays in “the agricultural enterprise” as it
exists today.
Amici curiae are (1) companies that specialize in
the construction, installation, and repair of modern
hog and cattle barns, chicken houses, and other livestock confinement structures on farms; and (2) farmers
who hire them. The Department of Labor (“DOL”) has
long treated on-farm agricultural construction as
“agriculture” under the Fair Labor Standards Act
(“FLSA”) and the related H-2A statute that governs
the guestworker visa program on which all amici rely.
Starting with the farmers, Kohlnhofer Farms
is a family-owned 5,500-head hog farm in Goodhue,
Minnesota (a town of approximately 1,000 people). It
depends on agricultural construction companies to
supply the labor, expertise, and skills required to expand the farm’s operations and stay competitive. For
Pursuant to Supreme Court Rule 37.6, amici curiae state
that no counsel for any party authored this brief in whole or in
part and that no entity or person, aside from amici curiae, made
any monetary contribution toward the preparation or submission
of this brief. Pursuant to Supreme Court Rule 37.2, amici curiae
state that counsel of record for all parties received timely notice
of their intention to file this amicus curiae brief 10 days prior to
the deadline.
1
2
example, in 2021, it hired an agricultural construction
company to construct a new hog barn that would comply with the animal welfare standards of California’s
Proposition 12. Kohlnhofer Farms could never have
constructed this state-of-the-art building on its own,
with the help of neighbors, or even with the help of a
“typical” residential or commercial construction company unfamiliar with the regulations and requirements unique to the agricultural industry. But it
needed a Proposition 12 facility to meet the evolving
requirements of the pork packers to which it supplies
hogs. In the words of one Kohlnhofer family member:
“If you don’t grow, you don’t survive.”
Boadwine Farms in Baltic, South Dakota, is a
fourth-generation family farm originally homesteaded
in 1874. An innovative dairy, Boadwine received the
2020 national Beef Quality Assurance Farmers Assuring Responsible Management Dairy Award recognizing its commitment to excellence in cow care, and it
was recently awarded a 2022 U.S. Dairy Sustainability
Award for its sustainable farming practices. Boadwine
has grown in terms of its herd size (from 40 milking
cows in the 1980s to 5,000 Holstein dairy cows today)
and its facilities. Today, Boadwine’s cows are housed in
barns equipped with ventilation, sprinkler systems,
and lighting at udder level in the milking parlor.
Reicks View Farms is a family farm in Lawler,
Iowa, founded in 1979. Founders Dale and Laura
Reicks work alongside their two children to farm
corn and raise hogs. The Reicks family also owns
an agricultural construction business called Jerico
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Construction, which builds hog barns. Jerico provides
construction services that support the smaller hog
farms that work in conjunction with Reicks View
Farms to raise hogs. With only six employees, Jerico
subcontracts to other agricultural construction companies certain specialized aspects of the work, including
concrete, heat recovery, ventilation, and filtration.
Owner and CEO Dale Reicks explained, “We can’t do
that skilled work locally, so we hire it out.”
Turning to the amici who specialize in on-farm agricultural construction work, each of them works hand
in hand with the farmers who hire them. They have
spent decades developing specialized skills for working
on farms and meeting the demanding timelines that
farmers—and their animals’ life cycles—impose.
First, in the poultry and egg industry, Ag Installers, based in Sugar Land, Texas, works with
cage-free egg farms to install the complex aviary
equipment that egg-free systems require, complete
with mesh flooring, ramps, feed troughs, water lines,
manure belts, fans, inlets, heaters, and other ventilation components—all equipment that farmers simply
cannot effectively install themselves. Ag Installers
prides itself on its ability to “take the stress away from
the farmer.” The company has completed jobs on farms
across the country.
Lionheart Construction, based in Royston,
Georgia, specializes in poultry house construction, primarily serving Georgia and South Carolina. Lionheart’s work is driven by “bird dates”: when the pullets
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(young hens) are ready, when the eggs are laid, when
the broilers are ready to go out. Lionheart draws on the
farming background of its owner Julia Lunn—a child
of southern Indiana farm country—and tailors its construction projects to farmers’ needs.
In the hog and cattle farming industries, Altenburg Construction specializes in replacing hog slats
and cattle slats, i.e., the flooring that animals stand
on that allows manure to drop to a level below. Andy
Altenburg started the business in 1994 in his garage
in Lewisville, Minnesota (pop. 115)—a struggling town
so small that it now has no grocery store, and “even the
liquor store is failing.” But Altenburg Construction has
survived. Today, it remains a family business and travels throughout the Midwest, responding to emergency
calls for repairs and working with farmers on strategic
planning for the future by identifying barns that will
need repair. The equipment that Altenburg uses in
working on concrete, metal, and plastic flooring systems in barns is highly specialized and is built to specifications for animal safety and manure removal.
Other amici also build on-farm structures for
hogs, cattle, and chickens. R&R Christo Construction, based in Fremont, Nebraska, installs agriculture
equipment—manure drives, feeders, waterers, ventilation, and the like—on dairy, hog, and poultry farms in
Indiana, Nebraska, Iowa, and elsewhere. Spartans
Agricultural Builders, based in Rockford, Illinois,
builds hog and cattle barns and installs equipment
on dairy, hog, and cattle farms. It recently began
work on a large construction project featuring an
5
innovative barn that offers a more energy-efficient and
biosecure environment for hogs. In Pittsfield, Illinois,
Longhorn Cattle & Swine Confinement Systems
provides a wide range of services on farms, from concrete pouring to equipment installation to site planning to framing. It was founded by a farm owner over
forty years ago.
Summit Heartland LLC d/b/a Heartland
Builders Co. (“Heartland Builders”) specializes in
the erection of swine production facilities, including
finishing barns, farrowing barns, and nurseries. Established in 1988 and based in Columbus, Nebraska,
Heartland Builders works primarily in the Midwest
region, but also works in Missouri, Arkansas, Texas,
and Oklahoma.
Lastly, some amici are experts in the specialized
concrete aspects of farm construction projects. A typical concrete project for these companies involves establishing footings and foundations around the perimeter
of a barn and laying slotted concrete inside the barn
that is specially designed to allow for manure removal
to a pit below the flooring (work that often requires
standing in manure pits in waders). Alewelt Concrete is a concrete subcontractor based in Alden, Iowa,
that has worked on farms since 1997. It has helped
over 3,500 farmers in the last decade alone. Throughout the Midwest, it works to provide concrete construction for pork facilities, dairy and cattle barns, and cagefree egg facilities. South Dakota-based J N J Construction specializes in pouring concrete on hog farms
and in confinement barns for finishing cattle, working
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in Iowa, Minnesota, Nebraska, North Dakota, and
South Dakota. Drew Brandt Construction, based in
Ackley, Iowa, exclusively pours concrete for egg laying
facilities in Iowa, Nebraska, and Missouri.
Amici have a direct and substantial interest in
the statutory interpretation question in this case.
The DOL has long treated their work as “agriculture”
within the broad definition of the FLSA, such that it is
exempt from the FLSA’s overtime requirements. Overtime requirements would strain amici given the tight
cashflows of farmers (with net farm income forecast
only to decrease), the extra costs associated with hiring
more H-2A workers, and the reality that the construction of livestock confinement structures requires
working long hours for limited periods to meet the constraints of animal life cycles and weather patterns.
And overtime aside, the prospect of litigating the “agriculture” classification over and over—with needless,
lengthy, and expensive discovery—also looms. More
broadly still, the classification at issue here has implications not only for overtime pay but also for the H-2A
visa program—an essential source of labor for the agricultural construction industry.
---------------------------------♦---------------------------------
SUMMARY OF ARGUMENT
Workers who build specialized agricultural structures and equipment, on farms and at the direction
of farmers, have been uniformly categorized for decades as agricultural workers exempt from overtime
7
requirements and eligible for the H-2A visa program.
As Signet’s Petition notes, when an agricultural construction company like Signet applies to the DOL for
an agricultural guestworker visa, the application is
“open and notorious” about the nature of the work and
the fact that no overtime will be paid. And these applications have been routinely approved by the DOL for a
long time.
The Seventh Circuit’s decision risks disrupting
longstanding DOL practice and the agricultural economy that has come to depend on it. The DOL’s proper
classification of agricultural construction as “agriculture” is critical to agricultural construction companies
and to the farmers who need modern structures for
housing livestock and poultry, but who cannot complete that specialized work themselves.
Under the FLSA, “agriculture” includes not only
“primary” agriculture such as “the raising of livestock”
but also “secondary” agriculture. Secondary agriculture—the category at issue here—is defined as “any
practices . . . performed . . . on a farm as an incident to
or in conjunction with [primary] farming operations.”
29 U.S.C. § 203(f ).
The on-farm construction practices of amici illustrate what it means to work “as an incident to or in
conjunction with” farmers. Amici work alongside farmers to build the environments in which cows, pigs, and
chickens live. They navigate agriculture-specific building codes and regulations to create fully integrated
structures with flooring, ramps, feeders, waterers,
8
manure drives, fans, inlets, and climate control features that keep the animals alive and well. Their
work is intertwined with the rhythms and seasons of
farming. In the hog industry, for example, construction
is dictated by the hogs’ life cycle. Companies that build
hog barns, like Heartland Builders, know that the
gestation phase lasts 3 months, 3 weeks, and 3 days
because that cycle dictates how long on-farm construction and maintenance projects can take. In short, onfarm construction is a quintessential example of secondary agriculture.
By construing the FLSA’s definition of “agriculture” narrowly (instead of fairly), and by focusing on
the employer’s business (instead of the practice at issue), the Seventh Circuit erred. If the Seventh Circuit’s
decision were left undisturbed, agricultural construction companies could be subject to inappropriate overtime requirements and needless, costly discovery that
they often cannot afford.
Further, the Seventh Circuit’s erroneous decision
could also have ramifications for the H-2A visa program’s classification of on-farm construction. Farmers
and agricultural construction companies rely on the
H-2A visa program to provide crucial labor that is in
short supply. The H-2A visa program is limited to “agricultural labor or services,” and its definition of “agricultural” is tied to the FLSA definition of “agriculture.”
As a result, the Seventh Circuit’s decision could ultimately jeopardize the agricultural construction industry’s access to the H-2A workforce upon which it relies.
9
This could, in turn, have ripple effects for farmers and
food supply chains.
---------------------------------♦---------------------------------
ARGUMENT
The work of the agricultural construction amici is
varied and specialized, but all of this work is properly
classified as secondary agriculture. As the district
court correctly held, respondent pled himself out of
court by admitting that his work consists of “building
livestock confinement structures” “on farms.” The Seventh Circuit’s contrary holding is wrong and may have
far-reaching consequences if left undisturbed.
I.
On-farm construction of livestock confinement structures is a commonsense example of secondary agriculture under the
FLSA.
The Seventh Circuit’s opinion departs from the
longstanding, and commonsense, classification of onfarm agricultural construction as incidental to primary agriculture.
The FLSA categorically exempts from overtime
requirements “any employee employed in agriculture.”
29 U.S.C. § 213(b)(12). It defines “agriculture” broadly,
“in both a primary and a secondary sense.” Bayside
Enters., Inc. v. NLRB, 429 U.S. 298, 300 (1977). The
primary sense “includes farming in all its branches . . .
includ[ing] the cultivation and tillage of the soil,
dairying, . . . [and] the raising of livestock, bees,
10
fur-bearing animals, or poultry.” 29 U.S.C. § 203(f ). The
secondary sense includes “any practices . . . performed
. . . on a farm as an incident to or in conjunction with
such farming operations.” Id. Interpretive regulations
provide some examples of secondary agriculture, including—as relevant here—the “erection of silos and
granaries” when performed on a farm by independent
contractors. 29 C.F.R. § 780.136.
Although the line between practices that are and
are not “incident to or in conjunction with” farming
may not be “susceptible of precise definition” (29 C.F.R.
§ 780.144), the construction, installation, and repair of
livestock barns, chicken houses, and other essential infrastructure on farms is not a borderline case. Rather,
it falls squarely—intuitively—within secondary agriculture.
A. On-farm construction of livestock confinement structures is performed “as
an incident to or in conjunction with”
farming.
Long ago, an American farmer in need of a new
barn might gather friends and neighbors and organize
a barn raising. A typical farm family could not supply
all the needed labor on its own, so a communal barn
raising was how the job got done.
No more. Today, the sophisticated construction of
large, modern barns bears little resemblance to the
barn raising of days past. It requires the equipment,
knowledge, and skill of specialized companies. It
11
requires separation between different farms under
biosecurity protocols that prevent infectious disease
among livestock. And it produces large livestock confinement structures—complete with climate control,
mechanized equipment, and other features designed
for animal welfare—that are a far cry from the simple
wooden barns of days past. As farmers adapt to an
evolving regulatory landscape and increasing consumer demand for humanely raised meat products,
they increasingly need specialized agricultural construction companies to remain competitive.
Despite this evolution, on-farm agricultural construction is secondary agriculture, no less than its
historical precursors. As this Court has explained: “If
it is agriculture, albeit industrialized and involving
highly specialized mechanical tasks, we must hold it
to be within the agriculture exemption.” Maneja v.
Waialua Agric. Co., 349 U.S. 254, 265 (1955).
Take Kohlnhofer Farms, for example. In the fall of
2021, it hired an agricultural construction company to
come to its 5,500-head hog farm and build a new barn
that would be compliant with Proposition 12, a California law that regulates the treatment of animals confined on farms, with specific standards including for
freedom of movement and minimum floor space.
Kohlnhofer Farms did not have the manpower, equipment, or expertise to take on the project on its own, or
it would have done so. Instead, it sought out “people
who specialize in hog building” to get the job done. Its
new Proposition 12 barn houses about 1,500 hogs—
and allows Kohlnhofer Farms to meet the current
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consumer demand for meat production that satisfies
animal welfare standards.
In recent decades, to stay competitive and meet
growing demand, many farmers have sought economies of scale through larger and larger farming operations. The General Manager for Heartland Builders,
Brian Palmer, has experienced this trend firsthand. In
his experience, 1,200-head hog farms have given way
to 6,000-head hog farms (a common size now), and
Heartland is currently working on a 12,000-head hog
farm. Large barns on a farm of this scale may stretch
to 200 feet wide. Building a barn like that is no easy
feat, and hog breeding cycles leave little room for error
or delay. It requires large cranes and other specialized
equipment and workers who “know exactly what they
are doing.” Some of Heartland Builders’ customers are
farmers who used to construct their own smaller livestock buildings and are amazed at the large, modern
structures that Heartland Builders can construct in a
fraction of the time.
Longhorn Cattle & Swine Confinements has had
similar experiences with its farmer customers. The
Illinois-based company builds swine and cattle confinement systems and any other structures that a
farmer may need, such as tractor sheds and composters. A few weeks ago, Longhorn got a call from one
farmer who had been trying to install new gates on his
hog barn, without success: “We got animals coming,
and me and the boys have been at this for a couple of
days. This is way harder than what I thought it would
be.” In the experience of Longhorn’s Jonathon Ruzich,
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farmers often try to save money by installing equipment or other structures themselves—like they could
with less sophisticated structures in days past—but
end up calling Longhorn when they realize they do not
have the skill or time to complete the project themselves.
In the cage-free egg industry, R&R Christo Construction and Ag Installers work in parallel with
farmers to install aviary equipment for cage-free egg
facilities nationwide. Demand for cage-free eggs has
soared, and it requires buildings adapted for the purpose. Specialized equipment, which includes manure
drives, feeders, waterers, and ventilation, creates the
environment in which the chickens live. The knowledge
required to install it is “incredibly niche.” The CEO of
Ag Installers explained that it can take years to become skilled at the job. Farmers today need sophisticated livestock barns and chicken houses, and they
need a specialized agricultural construction industry
to build those structures.
As part of operating in the farm context, agricultural construction companies—just like the farmers
who hire them—are subject to farm-specific requirements. As R&R Christo Construction puts it: “Everything we do is for the farmers. Everything that affects
the farmer affects us by default.” That includes biosecurity protocols. Biosecurity protocols—that is, practices that lower the risk of infectious disease among
livestock and poultry—apply to all on-farm workers,
including agricultural construction crews. For example, R&R Christo’s crews, which can range from 6 to 60
14
workers, are required to “shower in” and “shower out”
of a site and must have a three- to five-day gap between
their work on different farms. Heartland Builders,
Drew Brandt Construction, J N J Construction, and
Spartans Agricultural Builders follow similar rules
and train their crews on biosecurity protocols. Like
farmers, agricultural construction companies may be
affected by a disease outbreak among the animals on a
farm. Just a few months ago, Altenburg Construction
had to postpone a job for seven months because of a
disease outbreak at a farm.
Agricultural construction companies may offer
other forms of specialized training as well. For example, Altenburg requires its workers to complete two
weeks of safety training before a job, including training
on confined space hazards and various gases that prepares workers for situations when they need to sift
through pig or cow manure to address a problem.
As these examples illustrate, the on-farm construction, installation, and repair of livestock barns
and chicken houses is a necessary and integral part of
“the agricultural enterprise” in America today. Maneja,
349 U.S. at 262. The specialized structures that amici
take pride in serve quintessentially agricultural functions and are vital to the welfare of farmers’ animals.
See, e.g., Bills v. Cactus Family Farms, LLC, 5 F.4th
844, 847 (8th Cir. 2021) (pig loading assessments
were “incidental” to pig-raising operations because
they “contributed to the welfare of the pigs being
loaded” onto trucks). This on-farm construction activity is secondary agriculture under the FLSA. Id.
15
B. On-farm construction of livestock confinement structures is dictated by
farming timetables and is otherwise
seasonal.
The seasonal, animal-centered rhythms of agriculture extend to agricultural construction as well. Because of immovable deadlines set by animal life cycles,
on-farm construction projects often need to be completed quickly, and it is not uncommon for a project to
involve an intensive burst of labor in a relatively short
period of months or even weeks. Weather patterns matter, too. In winter, outdoor construction can be difficult
or unsafe, so winter is an “off season” for many agricultural construction companies.
Agricultural construction projects are driven by
agricultural timetables. For example, “pig dates”—that
is, moments of transition in hog life cycles—drive
the strictly scheduled projects of Heartland Builders
and Altenburg Construction, just as they drive the
farmers they work for. Heartland constructs three
types of barns corresponding to the phases of raising
hogs: (1) gilt development units, which house nursery
pigs starting at 21 days old; (2) breeding gestation
barns, where the breeding pigs reside for their gestation phase, lasting 3 months, 3 weeks, and 3 days; and
(3) farrowing barns, where piglets are born. The cycle
of hogs through these barns is known as the “turn of
pigs.” For Heartland, it is typical for the first two barns
to be stocked with pigs while Heartland is working to
complete the third barn. Because the farrowing barn
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will soon have to house the pigs coming from the gestation barn, there can be no delay in construction.
Disruption or delays in the “turn of pigs” can be
disastrous. Indeed, pork producers have had to euthanize entire herds when they could not properly turn
their pigs. For example, millions of pigs had to be euthanized when the COVID-19 pandemic devastated
the country’s capacity for processing hogs into pork.
See NPR, Millions of Pigs Will Be Euthanized As Pandemic Cripples Meatpacking Plants (May 14, 2020)
(https://www.npr.org/2020/05/14/855662494/millions-ofpigs-will-be-euthanized-as-pandemic-cripples-meatpackingplants). There is no flexibility in the production cycle.
Accordingly, Heartland Builders’ projects are typically
completed as quickly as possible, with 12-hour workdays during the workweek.
Similarly, Altenburg Construction serves pork producers by ramping up quickly and reliably on schedule,
so as not to disrupt the finely tuned sequence of pork
production. Altenburg specializes in replacing hog
slats, which is the flooring that animals stand on that
allows manure to drop to a level below. Sometimes—
especially when called out for “emergency work”—the
company has a matter of days or even a single day in
which to clean and perform repairs between a group of
pigs leaving and the next group coming in.
On poultry farms, “bird dates” drive the schedule
of any on-farm construction project. In the egg sector,
every two years, chickens are rotated from a pullet
barn (for young hens) to a layering barn (for birds that
17
lay eggs). In the broiler context, an integrator delivers chicks to a farm on a specified date. Once those
chicks have grown, they are transported off the farm
for slaughter, and there is a short window of time—
usually only two to three weeks—before the next group
of chicks arrives. If the chicken house is in need of any
construction work, repair, or maintenance, it has to be
done in that window. Poultry house construction companies like Lionheart Construction work to these inflexible deadlines.
Like farming, on-farm construction work follows
the seasons. December to February is the “off season”
in many parts of the country, when agricultural construction companies typically go dormant because it is
simply too cold to work on farms or to move animals
safely between locations. In residential or commercial
construction, companies can erect the shell of buildings
in the fall, then enclose and heat the structure to complete interior construction during the winter. In the
specialized field of agricultural construction, that is often not an option. Where agricultural equipment is
built into the structure in an integral way, the entire
project may need to be completed while exposed to the
elements before it is enclosed and heated as a final
step.
Consider a typical poultry construction project by
R&R Christo Construction. The inside of the poultry
house is built first, and, due to the nature and size of
the equipment, the roof (and the ability to heat the
structure) comes last. Thus, as a principal of R&R
Christo explained, “if it is negative ten degrees
18
outside, it is a balmy negative seven degrees inside.”
Unlike residential or commercial construction jobs,
R&R Christo’s construction jobs—unprotected by exterior walls, roof, or insulation—are paused in the winter
months. Longhorn’s cattle barns are similarly open to
the elements during construction, such that Longhorn’s crews cannot work in wintery conditions. Even
in the Southeastern States where Lionheart works,
chicken house construction slows in the coldest winter
months when Lionheart can’t pour concrete due to the
low temperatures.
In sum, agricultural construction projects are
wholly dictated by farming timetables and are dependent on weather conditions, requiring long hours for
bursts of time to meet absolute deadlines dictated by
animal life cycles and seasonal downcycles. This reality makes the standard FLSA model inapposite. See 81
Cong. Rec. 7652 (1937) (statement of Sen. Black).
***
Under the FLSA’s definition of secondary agriculture, what matters is whether the “practice[ ]” is “performed” “on a farm as an incident to or in conjunction
with [primary] farming operations.” 29 U.S.C. § 203(f ).
The Seventh Circuit strayed from the plain language
of the statute. Under the proper test, workers who
build livestock confinement structures on farms fall
squarely within the FLSA’s definition of secondary agriculture. They stand in farmers’ shoes to complete
necessary projects that farmers cannot complete themselves.
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II.
The Seventh Circuit’s erroneous decision
could have far-reaching and damaging
consequences.
The Seventh Circuit’s decision threatens to disrupt the productive agricultural system made up of
farmers, agricultural construction companies, and the
H-2A guestworkers who are essential to completing
on-farm construction projects. Agricultural construction companies that have come to rely on the DOL’s
longstanding treatment of their work as “agriculture”—a regulatory regime that should not be brushed
aside lightly—are in the crosshairs in this litigation.
Given the rural, seasonal, and time-sensitive nature of the work, agricultural construction companies
including amici rely heavily on H-2A agricultural
guestworkers. The H-2A visa program comes with administrative complexity and substantial costs, including visa filing fees, housing, transportation, and more.
In addition, an employer of H-2A workers has wage requirements for each state as determined by the Adverse Effect Wage Rate, which is typically higher than
the minimum wage. See David J. Bier, H‑2A Visas for
Agriculture: The Complex Process for Farmers to Hire
Agricultural Guest Workers (Mar. 10, 2020) (https://
www.cato.org/publications/immigration-research-policybrief/h-2a-visas-agriculture-complex-process-farmershire#h-2a-program-rules) (noting that 2020 AEWR
was higher than every state’s minimum wage by average of 57 percent).
20
Notwithstanding the cost and complexity of the
H-2A visa program, the past decade has witnessed an
exponential increase in the number of H-2A workers
arriving each year due, in part, to the incredibly tight
labor market and domestic workers’ general unwillingness to engage in seasonal agricultural work. See, e.g.,
Skyler Simnitt & Marcelo Castillo, Use of H-2A Guest
Farm Worker Program More Than Triples in Past
Decade, Econ. Rsch. Serv. U.S. Dep’t of Agric. (Sept. 7,
2021) (https://www.ers.usda.gov/amber-waves/2021/
september/use-of-h-2a-guest-farm-worker-programmore-than-triples-in-past-decade/). That trend is borne
out by the agricultural construction industry, which
has come to depend on H-2A guestworkers. The H-2A
program imposes administrative burdens—and
doesn’t leave flexibility for ad hoc additions to the
workforce—but it fills a gap that simply cannot be
filled with domestic labor. The Seventh Circuit’s
decision has injected needless uncertainty into the
agricultural construction industry’s eligibility for
the H-2A program.
This is a decision that may be keenly felt in the
States within the Seventh Circuit. Illinois, Indiana,
and Wisconsin are some of the most important agriculture States in the country:
•
Wisconsin ranks #2 in dairy
•
Indiana ranks # 3 in chicken eggs
•
Illinois ranks #4, Indiana #5, and Wisconsin
#16 in hogs
21
•
Illinois, Indiana and Wisconsin rank in the
top 25 for farm chickens
•
Illinois, Indiana and Wisconsin all rank in the
top 10 for corn
Cash Receipts by Commodity State Ranking, Econ.
Rsch. Serv. U.S. Dep’t of Agric.(https://data.ers.usda.
gov/reports.aspx?ID=17844#P9e06edba686446a8bcc1
710090e4ebbf_10_251iT0R0x132) (last updated Feb. 7,
2023). Accordingly, disruption of the agricultural construction industry in those States may have far-reaching effects for the nation’s food supply. The potential
impacts of the Seventh Circuit’s decision underscore
the need for review by this Court.
A. The Seventh Circuit’s decision could
subject agricultural construction companies to inappropriate overtime requirements.
The most immediate potential impact relates to
overtime pay. Because on-farm construction of livestock barns and poultry houses has long been classified
as “agriculture” under the FLSA, this work has been
exempt from the FLSA’s overtime requirements (and
eligible for the H-2A visa program, as discussed below).
The prospect of potentially having to pay overtime—on
top of the extra costs associated with the H-2A visa
program itself—is daunting to agricultural construction companies and farmers like amici. Given the demanding seasonal schedules of on-farm construction
projects, long workdays cannot be avoided. For that
22
very reason, the FLSA’s overtime requirements were
never intended to apply to agriculture.
Agricultural construction companies would likely
have to make tough business decisions if faced with
overtime requirements in certain jurisdictions. Extending the time it takes to complete a project is not
an option. Additional workers are hard to come by, and
hiring additional H-2A workers adds costs far above
overtime pay due to the H-2A-specific costs discussed
above. R&R Christo Construction estimated that it
would simply be forced to abandon States that require
overtime pay. And in the words of Altenburg Construction, “paying overtime would devastate us.” This reduction in the availability of agricultural construction
services could result in disruption for farmers and supply chains, negative impacts for animals, and more
food inflation for customers.
B. The Seventh Circuit’s decision could
spawn litigation with needless and
costly discovery.
The Seventh Circuit did not purport to classify agricultural construction as exempt or not exempt from
the FLSA’s overtime requirements. Instead, it took issue with the district court’s categorical determination
based on the pleadings that the on-farm construction
of livestock confinement structures is secondary agriculture. The Seventh Circuit prescribed a “totalityof-the-circumstances test” that improperly includes
consideration of whether the employer’s construction
23
business “amounts to an independent business.” That
test cannot be squared with the plain language of the
operative statute. It threatens to subject agricultural
construction companies to repeated litigation concerning the “agriculture” classification, with needless,
drawn-out, and costly discovery processes that they
often cannot afford.
C. Because the Seventh Circuit’s decision
conflicts with the DOL’s longstanding
view of agricultural construction as
“agriculture,” it threatens the agricultural construction industry’s reliance
on the H-2A visa program.
Although H-2A eligibility is not directly at issue in
this case, the Court should not overlook the potential
ramifications for the H-2A visa program.
The H-2A program is limited to “temporary or
seasonal” “agricultural labor or services.” 8 U.S.C.
§ 1101(a)(15)(H)(ii)(a). In other words, a job cannot be
done by an H-2A guestworker unless it is “agricultural.” The H-2A statute defines “agricultural labor or
services” to include (1) “agriculture” as defined by the
FLSA; (2) “agricultural labor” as defined in 8 U.S.C.
§ 3121(g); and (3) “the pressing of apples for cider on a
farm.” Id. Because the FLSA definition is materially
similar to or broader than the other two definitions
that inform the H-2A definition, the Seventh Circuit’s
opinion injects uncertainties into the H-2A visa program despite decades of consistent DOL guidance and
24
interpretation that agricultural construction workers
building on-farm structures are “agricultural.” As Signet’s Petition notes, the Seventh Circuit’s decision
“sets the FLSA on a collision course with the H-2A visa
program.” Petition at 27.
If the on-farm construction of livestock confinement structures is no longer deemed “agricultural”—
or if it becomes too costly to litigate the classification—
then would-be H-2A workers may no longer be admitted to do this work. That would be disastrous for the
agricultural construction industry and the farmers it
serves.
The H-2A visa program has served as a virtual
lifeline for amici. Amici have found it increasingly difficult to recruit domestic workers for the rural jobs that
farmers need done. These jobs are needed in remote
locations. It is manual labor that requires long journeys and time away from family—a hard lifestyle
that seems to appeal to fewer and fewer U.S. workers.
Multiple agricultural construction companies describe
H-2A workers as “a pillar” of their businesses. Without
it, these companies would be unable to staff construction projects, and the farming operations they support
would be directly affected.2
The H-2B program would not provide a solution to the problem because it has a cap and is already oversubscribed. Consequently, the number of workers currently hired under the H-2A
program could not be hired under the H-2B program in a timely
manner, if at all.
2
25
For example, Ag Installers has advertised hundreds of labor positions in various States yet struggles
to fill even a small number of openings with domestic
workers. It therefore relies on the H-2A program, currently working with about a hundred H-2A guestworkers per year, including many who have worked with Ag
Installers for seven or eight years and become skilled
in its “super niche specialty.” To lose its H-2A workforce would be a “disaster” for Ag Installers and the
farmers it supports. Similarly, R&R Christo struggles
to attract U.S. workers who can meet farmers’ firm
deadlines, which are designed to ensure appropriate
infrastructure for the care of hogs and chickens. R&R
Christo works with hundreds of H-2A workers each
year. These companies, along with other amici, might
have closed their doors by now but for the H-2A program.
The same goes for Spartans Agricultural Builders.
In Spartans’ experience, “as soon as local workers
come out on the farm and smell the job, they don’t
come back the next day.” Spartans hires over a hundred H-2A workers every year. It recently began work
on an innovative new 12,000-sow complex in South
Dakota. The development, which covers 55 acres, offers
a more energy-efficient and biosecure environment for
hogs. The project relies so heavily on H-2A workers
that it had to be paused when the workers’ visas
lapsed.
26
Amici prize the specialized experience and reliability of the H-2A crews they work with. For example,
Longhorn Cattle & Swine Confinements has been
working with the same H-2A guestworkers for over a
decade through its subcontractor Alewelt, resulting
in a knowledgeable and efficient construction process
that residential and commercial contractors could not
match—a process that “works like a well-greased machine.”
Longhorn’s well-greased machine would grind to a
halt without its H-2A workforce. The Seventh Circuit’s
narrow interpretation of “agriculture” under the FLSA
sets up a conflict with the DOL’s treatment of agricultural construction jobs as “agricultural.” If these jobs
were to become ineligible for the H-2A visa program as
a result of confusion created by the Seventh Circuit’s
opinion, that would impair the operations of the agricultural construction amici and their farmer customers. And it would undoubtedly have damaging ripple
effects for the food supply chains needed to feed a
growing population.
---------------------------------♦---------------------------------
27
CONCLUSION
For the foregoing reasons, the Court should grant
Signet’s petition for certiorari and reverse the decision
of the United States Court of Appeals for the Seventh
Circuit.
Respectfully submitted,
NOWELL D. BERRETH
Counsel of Record
KRISTI BOSWELL
BRYAN W. LUTZ
FIONA O’CARROLL
DANIELLE K. GOLDSTEIN
ALSTON & BIRD LLP
1201 West Peachtree Street NW
Atlanta, Georgia 30309
Tel: 404-881-7000
nowell.berreth@alston.com
Counsel for Amici Curiae
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.