In June 1948, the attention of Government, Business, and Labor interests suddenly became focused on a decision of the United States Supreme Court, Bay Ridge Operating Co. v. Aaron.' The Court, in this decision, interpreted the phrase "regular rate" of Section 7 (a) of the Fair Labor Standards Act of 19382 and propounded the doctrine now familiarly known as "overtime on overtime."
The Bay Ridge rule, if rigidly enforced, was predicted to have a most far-reaching effect on the nation's economy, causing business and industry to be subject to liabilities supposedly totalling several billion dollars.' The problem arose as a result of the interpretation of the wage provisions in the collective bargaining agreements between the International Longshoremen's Association, the International Longshoremen's and Warehousemen's Union and the various longshore and stevedoring firms.
