March 27, 2026
Certification establishes precedent for two other cases against The Salvation Army, pending in New York and Georgia.
CHICAGO – A federal court in Illinois granted class certification to thousands of participants in Salvation Army Adult Rehabilitation Centers (“ARC workers”) in Illinois, Michigan, and Wisconsin. ARC workers claim The Salvation Army has not been paying them minimum wage for work they do on behalf of the organization, in violation of federal and state laws. In the same ruling, the court also certified a collective action under the Fair Labor Standards Act (FLSA) for ARC workers in Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Nebraska, North Dakota, South Dakota, or Wisconsin.
Clancy, et al. v. The Salvation Army is one of three class and collective actions filed against The Salvation Army for failing to pay ARC participants the minimum wage for their work. Two are presently stayed before federal courts in Georgia and New York, pending a decision on class certification in Clancy. In total, the lawsuits encompass 38 states in which The Salvation Army has ARCs.
As alleged in the complaints, thousands of ARC workers, who are often unhoused and struggle with addiction, enroll in The Salvation Army Adult Rehabilitation Centers each year. As a condition of their enrollment, workers must partake in 40 hours of “work therapy” a week, which typically involves working at The Salvation Army’s lucrative thrift stores. In exchange, ARC workers receive wages starting as low as $3 a week, capping out at $20-$30 per week, as well as communal housing, and food. If, however, they are unable to work or cannot meet The Salvation Army’s work expectations, they are expelled from the ARC program and associated housing.
The court order will allow the claims of ARC workers in Michigan, Illinois, and Wisconsin to proceed on a class basis. These large classes—more than 3500 ARC workers in Michigan, more than 3000 in Illinois, more than 650 in Wisconsin, and nearly 1000 in the other states covered by this case—will now be able to litigate their minimum wage claims collectively. The minimum wages in Illinois and Michigan are currently $15.00 and $13.73 per hour, respectively. The federal minimum wage, which applies to ARC workers in the other states, is $7.25 per hour. Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.
“On behalf of ARC workers across the country, I’m pleased with the court’s ruling. Being denied minimum wage for required, full‑time labor undermines the dignity and autonomy of people seeking stability and support,” said Harini Srinivasan, a partner in Cohen Milstein’s Civil Rights & Employment practice. “Class certification allows the issues to be considered on a meaningful scale.”
“We welcome the court’s decision to certify the class, recognizing that the issues raised in this case affect thousands of vulnerable individuals. We remain optimistic about holding The Salvation Army accountable for complying with minimum wage laws,” said Michael Freedman, senior counsel at Rosen Bien Galvan & Grunfeld LLP.
“Today’s ruling marks an important milestone for worker rights. We have much more work to do – federally and at the state level, but this is a crucial and necessary step in the right direction,” said Jessica Riggin, a partner at Rukin Hyland & Riggin LLP.
In a separate minute order issued yesterday, the court indicated that, in the next week, it was likely to rule on The Salvation Army’s motion for summary judgment.
The cases are styled: Clancy, et al. v. The Salvation Army, Case No. 1:22–cv–01250 (N.D. Ill.); Massey v. The Salvation Army, 1:22-cv-00979, (N.D. Ga.); and Acker v. The Salvation Army, 1:22-cv-01968, (S.D.N.Y.). Plaintiffs are represented by attorneys from Cohen Milstein Sellers & Toll PLLC, Rosen Bien Galvan & Grunfeld LLP, and Rukin Hyland & Riggin LLP. All three firms are court-appointed Class Counsel in Clancy. The plaintiffs in the case filed in Georgia are also represented by Radford & Keebaugh.
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About Cohen Milstein Sellers & Toll
Cohen Milstein Sellers & Toll PLLC, a premier U.S. plaintiffs’ law firm, with over 100 attorneys across eight offices, champions the causes of real people—workers, consumers, small business owners, investors, and whistleblowers—working to deliver corporate reforms and fair markets for the common good. We have litigated landmark civil rights and employment disputes before the highest courts in the nation and continue to actively shape civil rights and employment law in the United States.
About Rosen Bien Galvan & Grunfeld
Rosen Bien Galvan & Grunfeld LLP, founded in San Francisco in 1990, is a nationally recognized civil rights firm and litigation boutique, with extensive experience in employment law, complex litigation, and class actions. RBGG counsels and represents clients across the nation and handles disputes in federal and state trial and appellate courts throughout California and nationwide.
About Rukin Hyland & Riggin
Rukin Hyland & Riggin LLP is one of the leading employment law firms in the San Francisco Bay Area. Our attorneys represent clients in a wide range of employment law cases, including claims for job discrimination, sexual harassment, disability accommodation, privacy rights, family and medical leave, whistleblower retaliation, and breach of employment contracts. A large part of our practice is representing employees in class actions and collective actions challenging unlawful pay practices, including wage and hour violations.