March 14, 2023
- Workers sufficiently alleged they were employees
- Challenge to willfulness allegations also fails
The Salvation Army lost its bid to throw out allegations it owes vulnerable people who live and work in its adult rehabilitation centers minimum and overtime wages.
The workers—who say they receive $7 to $25 per week in cash, along with room and board and rehabilitation services—argue that the total value of what they receive doesn’t meet state and federal minimum wage requirements. Their allegations, including as to their status as employees, are sufficient to move forward, the US District Court for the Northern District of Georgia said.
The four named plaintiffs, who seek to represent a Fair Labor Standards Act collective and a state-law class, worked at the religious nonprofit’s ARCs in Texas, Tennessee, Alabama, and Florida. All four say they worked at least 40 hours per week, and two allegedly worked more than that every week. They’re suing the entity responsible for Salvation Army’s southern region, which comprises 15 states and Washington, DC.
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Cohen Milstein Sellers & Toll PLLC, Rosen Bien Galvan & Grunfeld LLP, Rukin Hyland & Riggin LLP, and Radford & Keebaugh LLC represent the workers. Crowell & Moring LLP and Alpharetta, Ga.-based Evan R. Mermelstein represent Salvation Army.
Read the complete story on Bloomberg Law (subscription required).