In the case of Paramino Lumber Co. et al. v. Marshall, Deputy Commissioner, et al., 1939, the U.S Supreme Court was tasked with determining whether an employee's injury fell within the scope of employment under the Longshoremen's and Harbor Workers' Compensation Act (LHWCA). The plaintiff was a worker at Paramino Lumber Company who suffered injuries while on his lunch break in an area not designated for meals by his employer but commonly used by employees for that purpose. The court ruled in favor of the employee stating that even though he was injured during his lunch break, it still occurred within his 'zone of employment'. Therefore, he is eligible to receive compensation under LHWCA as it covers injuries occurring upon navigable waters or any adjoining pier or other areas customarily used by an employer in loading/unloading/repairing vessels regardless if they are strictly part of their duties or not.

In the dissenting opinion for Paramino Lumber Co. v. Marshall, Justice McReynolds expressed concern that the majority's decision expanded federal power too far into areas traditionally regulated by states. He argued that Congress did not have constitutional authority to regulate workers' compensation in this case because it involved a purely local activity - lumber manufacturing within one state - rather than interstate commerce. Furthermore, he contended that even if such regulation were permissible under the Commerce Clause, it would still violate principles of federalism and separation of powers by delegating legislative authority to an administrative agency (the Deputy Commissioner). Finally, he criticized the majority for interpreting statutory language broadly to cover situations not clearly intended by Congress.