Overtime Pay a Non-Starter at Non-Profit
So says a US District Court judge, who ruled that a senior center maintenance worker had no claim for higher wages under the Fair Labor Standards Act. Paul Kim said he received straight pay despite routinely working in excess of 40 hours at the Center for Seniors, which provides free meals, transportation and activities at four Chicagoland locations for recipients of Supplemental Security Income. He claimed that because the non-profit collects fees from those it serves with incomes above basic assistance, it should be classed as a commercial enterprise and thus subject to FSLA rules.
District Judge Robert Gettleman disagreed, dismissing the FLSA suit and declining to rule on Kim’s additional claims under state wage and collection statutes. He cited case law in affirming the defense contention that the services provided by the centers didn’t rise to the level of a private business. He added that despite sometimes handling out-of-state parcels and making purchases, Kim’s routine duties didn’t qualify him for protections granted under federal employment law. Last month, the US Labor Department expanded eligibility for overtime pay.