Consignment Sale Volunteering

[Anonymous]

I got to thinking about the whole thing with consignment sales like Just Between Friends where you can volunteer in order to increase your share of the profits on you items. How is it legal for people to volunteer for a for-profit organization? Do they have to make up the difference if your extra 10% that you earn from your shift doesn't come out to minimum wage (so if you only earn an extra $20 because of your shift, do they need to pay you another $9 on top of that) ? Minimum wage times 4 hours isn't a ton here in VA, but in the jurisdictions where it's more like $11-15/hr, you would need to sell alot of kids' clothes to get there.

[Anonymous]

The Rhea Lana organization went to court over this issue a few years ago. I believe the decision was that the “volunteers” should be paid as employees. But there may have been appeals by now, not sure.

[Anonymous]

Anonymous wrote:The Rhea Lana organization went to court over this issue a few years ago. I believe the decision was that the “volunteers” should be paid as employees. But there may have been appeals by now, not sure.

https://www.hrdive.com/news/kids-consignment-sale-volunteers-were-employees-dc-cir-finds/557079/

[Anonymous]

Anonymous wrote:

Anonymous wrote:The Rhea Lana organization went to court over this issue a few years ago. I believe the decision was that the “volunteers” should be paid as employees. But there may have been appeals by now, not sure.

https://www.hrdive.com/news/kids-consignment-sale-volunteers-were-employees-dc-cir-finds/557079/

Or for a more legalese version of the decision:

http://www.employmentlawdaily.com/index.php/news/consignment-sales-company-event-volunteers-are-employees-subject-to-flsa-requirements/

[Anonymous]

Not sure, but if you look at the percentage vs. sales its not worth volunteering in less you are selling $1000-1500 worth of stuff. Some of those sales used to be better but Tot Swap, for example a few years ago lowered the percentage you get to try to "encourage" volunteering but you have to volunteer a lot of hours and if you only sell a few hundred it doesn't even cover a babysitter cost.

[Anonymous]

Anonymous wrote:Not sure, but if you look at the percentage vs. sales its not worth volunteering in less you are selling $1000-1500 worth of stuff. Some of those sales used to be better but Tot Swap, for example a few years ago lowered the percentage you get to try to "encourage" volunteering but you have to volunteer a lot of hours and if you only sell a few hundred it doesn't even cover a babysitter cost.

Totally agree. Unless I am selling five years' worth of kids' clothes in one fell swoop, I can't imagine how this is worth the time.

[Anonymous]

Interesting, I'd never thought of the legal ramifications of this! I have volunteered at a couple of consignment sales. It's never "worth my money" if you break down the pay per hour, like I might end up with an extra $10 per hour. But I enjoy doing it, and appreciate the extra small bump in pay back. Honestly to me the best advantage of volunteering is getting to shop early and not having to deal with the crowds or waiting in line to check out. I try to pick a shift that gets me early shopping.

I have volunteered at church based sales that are tax exempt and only accept cash payments. I wonder if law are different in those cases because "volunteers" are acceptable?

[Anonymous]

I thought people volunteered to be able to shop earlier.