One Entrepreneur's Battle With Labor Dept.

On behalf of Rhea Lana, Inc. and Rhea Lana’s Franchise Systems, Inc., Cause of Action filed a Complaint for Declaratory and Injunctive Relief with the U.S. District Court for the District of Columbia on January 6, 2014. With Arkansas roots, Rhea Lana’s Franchise Systems, Inc hosts semi-annual consignment sales where families can buy and sell gently used clothes, toys, and furniture. Participants in the sales may volunteer as consignors, but the Department of Labor is attempting to define these consignors as “employees” under the Fair Labor Standards Act (FLSA). DOL determined there were FLSA violations for failing to pay minimum wage and overtime pay and threatened civil money penalties if Rhea Lana’s did not comply. DOL’s erroneous action discourages entrepreneurship and threatens small businesses.  The U.S. Court of Appeals for the District of Columbia on June 3, 2016 ruled in favor of Rhea Lana and her business, overturning the district court’s dismissal of the complaint. This ruling allows the case to proceed. No federal agency should be able to operate outside the bounds of the law, and Cause of Action is committed to holding DOL accountable.