Cause of Action (CoA), a government accountability organization, today appealed a District Court ruling in the case of Rhea Lana, Inc. v. U.S. Department of Labor.

For a brief history of the case, please click here.

As we announced back in November:

The U.S. District Court for the District of Columbia, though it ruled to dismiss Rhea Lana, Inc. v. U.S. Department of Labor, invited the D.C. Circuit to determine whether the Department of Labor (DOL) may lawfully destroy a small business by finding “violations” and soliciting others to sue using notice letters that evade judicial review.

Cause of Action Executive Director Dan Epstein issued the following statement:

The Department of Labor is hiding behind a false characterization of volunteers as employees, which has the practical effect of preventing the use of volunteers and will shut down successful franchise owners like Rhea Lana.  As the District Court recognized, agencies cannot avoid judicial review by hiding behind such administrative tactics, which essentially demand the recipient to comply or face stiff penalties.

Rhea Lana Riner issued the following statement:

I’m happy to see this appeal filed because it shows that we won’t stop fighting back against unfair government meddling. This case isn’t just about protecting my business – it’s about protecting the rights of mothers everywhere to use their personal time for their own benefit, and the consignment event industry at large. On an even bigger level, it’s about protecting small business owners who find themselves being threatened by big government overreach and overregulation.