In Acosta v. Cathedral Buffet, Inc., the court held that church member volunteers working for the church’s for-profit restaurant were not “employees” covered by the Fair Labor Standards Act (“FLSA”).
The Grace Cathedral Church operated a for-profit restaurant on its campus called Cathedral Buffet, which was open to the public and partially staffed by unpaid volunteer church members. Whenever the restaurant was short on paid employees, church leadership would recruit members from the church on Sundays, stating that those who said “no” to volunteering were “closing the door on God.” Church leadership further suggested that those members who repeatedly refused to volunteer were “blaspheming against the Holy Ghost.”
After investigating the Cathedral Buffet in 2014, the Department of Labor (“DOL”) filed suit, alleging the Cathedral Buffet violated FLSA by employing unpaid workers. The lower court found that the restaurant’s use of unpaid labor was a violation of the minimum wage requirement of the FLSA, ordering that the Cathedral Buffet pay nearly $194,000 in back wages to the church members and another $194,000 in liquidated damages to the Department of Labor. Cathedral Buffet appealed this decision.
The Sixth Circuit reversed the district court decision, holding that, although the restaurant was covered “enterprise” under the FLSA, the volunteers did not fall within the FLSA’s definition of “employee,” as they had no expectation of compensation. Thus, the court stated, the threshold question of compensation becomes irrelevant, and the court proceeds on to the question of whether the workers,” as an economic reality, are dependent upon the business to which they render service.” (citing Keller v. Miri Microsystems LLC). Thus, because volunteers are not economically dependent upon Cathedral Buffet in any way, the volunteers neither expected nor received any wages or in-kind benefits in exchange for their service. The court stated that even if the volunteers were coerced, the FLSA is only concerned with economic coercion, not “spiritual.”
Attorneys at FDAR routinely advise and represent Ohio employers in all aspects of wage and hour law, including drafting policies, auditing practices, representation during DOL investigations and proceedings, and in defending the employer in court. Feel free to contact Benjamin Albrecht (balbrect@fisheldowney.com) or Stephanie Schoolcraft (sschoolcraft@fisheldowney.com) by email or phone (614) 221-1216 if you have any questions.