Eleventh Circuit: Volunteering “Perks” Under FLSA
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APPLIES TO Employers with Employees in AL, FL, and GA |
EFFECTIVE March 12, 2024 |
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Quick Look
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Discussion
In Adams v. Palm Beach County, the Eleventh Circuit Court of Appeals concluded that a volunteer’s receipt of certain “perks” does not convert them to “employees” under the FLSA. This case was initiated by a group of volunteer attendants at a public golf course who were allowed to play golf at substantially discounted rates. The attendants alleged that their receipt of the discounted golf rates constituted a form of “compensation” that undermined their status as volunteers, and therefore, entitled them to minimum wage under the FLSA and Florida law.
The Court disagreed with the attendants’ argument, instead finding that as a matter of economic reality, the reduced-fee access to various golf clubs could not be considered anything more than a “perk” of volunteering. While certain in-kind benefits may constitute “wages in another form” which would be sufficient to undermine volunteer status, such benefits are usually in the form of goods and services that could substitute for wages under the economic reality test of employment. This typically includes things like food, shelter, clothing, transportation, and/or medical benefits.
Looking at the totality of the circumstances, the Court ultimately determined that the attendants satisfied the other criteria for “volunteers” under the FLSA and Florida law. Despite receiving the discounted golf “perk,” the attendants were properly classified as volunteers and not entitled to minimum wage. The Court stated that to find otherwise would deter public agencies and non-profit enterprises from acknowledging volunteer services with even modest “perks.”
Action Items
- Review classification of volunteers, employees, and other workers.
- Have appropriate personnel trained on appropriate worker classification and other wage and hour considerations.
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