Rhea Lana, Inc. v. U.S. Department of Labor

# Rhea Lana, Inc. v. U.S. Department of Labor ## What Happened Rhea Lana, Inc., a company that organized children's clothing consignment sales, classified its workers as unpaid volunteers rather than employees. The U.S. Department of Labor disagreed, arguing these workers should be paid at least minimum wage under federal law. ## What the Court Decided The court sided with the Department of Labor. The judge determined that Rhea Lana's "consignors" were actually employees entitled to minimum wage, not unpaid volunteers as the company claimed. The court rejected Rhea Lana's argument that the government's decision was unfair or unreasonable. ## Why This Matters for Workers This ruling reinforces that companies cannot simply call workers "volunteers" to avoid paying minimum wage. When someone performs work for a business—even if the business calls it volunteering—they may legally be entitled to payment. The decision protects workers from employers who try to bypass wage laws through creative job classifications. It sends a clear message: calling something volunteering doesn't make it so if the worker is actually helping the business operate.