Acosta v. Buffet

Cathedral Buffet is an Ohio for-profit corporation but does not generate a profit. The restaurant’s sole shareholder is Grace Cathedral, a 501(c)(3) non-profit religious organization, which subsidizes the restaurant. The Department of Labor (DOL) began investigating Buffet in 2014, reviewing the restaurant’s employment practices back two years. The restaurant separated its workers into “employees” and “volunteers.” Volunteers performed many of the same tasks as employees. Employees received an hourly wage; volunteers did not. Reverend Angley recruited volunteers from the church pulpit on Sundays. He suggested that members who repeatedly refused to volunteer at the restaurant were at risk of “blaspheming against the Holy Ghost,” an unforgivable sin in the church’s doctrine. Managers were instructed to tell prospective volunteers that Angley would find out if they refused to work. The DOL filed suit; the district court held that Buffet’s religious affiliation did not exempt it from Fair Labor Standards Act (FLSA), 29 U.S.C. 206(a), coverage because the restaurant was a for-profit corporation engaged in commercial activity and that the volunteers were employees under the FLSA. The Sixth Circuit reversed. To be considered an employee within the meaning of the FLSA, a worker must first expect to receive compensation; the Buffet volunteers had no such expectation. View "Acosta v. Buffet" on Justia Law