The U.S. Supreme Court case D.A. Schulte, Inc. v. Gangi et al., 1945 revolved around the issue of whether or not a New York state law that required employers to pay an extra hour's wage for each day an employee worked more than six days in any calendar week was constitutional under the Fair Labor Standards Act (FLSA). The plaintiff, D.A Schulte, Inc., argued that this requirement constituted double payment for overtime work already compensated under federal law and thus violated the FLSA’s intent to establish a uniform national policy on wages and hours. However, the court ruled against D.A Schulte, Inc., upholding New York's right to enforce its own labor laws alongside those set by federal legislation as long as they did not conflict with it directly but rather provided additional benefits or protections for workers beyond what is federally mandated. Therefore, requiring employers to provide additional compensation for employees working seven days in a week was deemed permissible because it didn't contradict but supplemented provisions within FLSA.

In the dissenting opinion for D. A. Schulte, Inc. v. Gangi et al., Justice Frankfurter disagreed with the majority's interpretation of Section 7(c) of the Fair Labor Standards Act (FLSA). He argued that Congress intended to provide a broad exemption for retail or service establishments from overtime pay requirements and believed that this should include businesses like cigar stands in hotels, which were at issue in this case. According to him, these types of businesses are part of a larger establishment providing services directly to consumers and therefore fall under the definition provided by Congress in FLSA as "retail or service establishments". He criticized the majority's narrow interpretation as inconsistent with Congressional intent and warned it could lead to arbitrary distinctions between different kinds of business operations within larger entities.