In the case of Mitchell, Secretary of Labor v. C.W. Vollmer & Co., Inc., 1954, the U.S Supreme Court was tasked with determining whether or not a construction company that had contracted to build post offices for the federal government fell under the purview of The Walsh-Healey Public Contracts Act - an act which sets standards such as minimum wages and safety measures for work on government contracts exceeding $10,000. The court ruled in favor of Mitchell (Secretary of Labor), asserting that C.W Vollmer & Co did indeed fall within this category and thus were subject to these regulations. This decision clarified that contractors working on public projects are considered public contractors under federal law and therefore must adhere to specific labor standards set by legislation like The Walsh-Healey Act.

In the dissenting opinion for Mitchell v. C.W. Vollmer & Co., Inc., Justice Frankfurter argued that the majority's interpretation of the Fair Labor Standards Act (FLSA) was too broad and not in line with congressional intent. He contended that Congress did not intend to regulate all activities related to interstate commerce, but only those directly affecting it. In this case, he believed that construction work on a public hospital funded by federal money should be considered local activity rather than interstate commerce because its impact on interstate commerce is indirect at best. Furthermore, he warned against overextending federal authority into areas traditionally regulated by states as it could undermine state sovereignty and upset the balance of power between state and federal governments.