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BROCK v. ELY GROUP, INC.

Nos. 85-5249, 85-5252.

788 F.2d 1200 (1986)

William E. BROCK, Secretary of Labor, United States Department of Labor, Plaintiff-Appellee, v. ELY GROUP, INC., Rockford Textile Mills, Inc., Ely & Walker, Inc., Defendants, Citicorp Industrial Credit, Inc., Defendant-Appellant.

United States Court of Appeals, Sixth Circuit.

Decided April 23, 1986.

Attorney(s) appearing for the Case

Francis X. Lilly, Theresa Ball, U.S. Dept. of Labor, Office of the Solicitor, Nashville, Tenn., Linda J. Pack (argued), Anne Fugett, Washington, D.C., for plaintiff-appellee.

John W. Baker, Jr., Poore, Cox, Baker, Ray & Byrne, Knoxville, Tenn., Mark I. Wallach (argued), Thomas A. Cicarella, Mitchell G. Blair, Calfee, Halter & Griswold, Cleveland, Ohio, for defendant-appellant.

Before ENGEL, KENNEDY and RYAN, Circuit Judges.

CORNELIA G. KENNEDY, Circuit Judge.

These consolidated appeals present the question whether section 15(a)(1) of the Fair Labor Standards Act ("FLSA"), as amended, 29 U.S.C. § 215(a)(1), applies to holders of collateral obtained pursuant to perfected security interests. The United States District Courts for the Eastern and Western Districts of Tennessee held that the FLSA applies to secured creditors. For the reasons set forth below, we affirm.

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