Document: 471 U.S. 290 105 S.Ct. 1953 85 L.Ed.2d 278 TONY AND SUSAN ALAMO FOUNDATION, et al., Petitionersv.SECRETARY OF LABOR. No. 83-1935. Argued March 25, 1985. Decided April 23, Syllabus Petitioner Foundation is a nonprofit religious organization that derives its income largely from the operation of commercial businesses staffed by Foundation's "associates," most whom were drug addicts, derelicts, or criminals before their rehabilitation Foundation. These workers receive no cash salaries, but provides them with food, clothing, shelter, and other benefits. The Secretary Labor filed an action in Federal District Court against petitioner officers thereof, alleging violations minimum wage, overtime, recordkeeping provisions Fair Standards Act (Act). held was "enterprise" within meaning 29 U.S.C. § 203(r), which defines term as "the related activities performed . any person persons for common business purpose," serve general public competition ordinary enterprises, under "economic reality" test employment associates "employees" protected Act. court rejected petitioners' arguments application to violated Free Exercise Establishment Clauses First Amendment. Appeals affirmed liability. Held: 1. constitute are not beyond Act's reach because character. This has consistently construed liberally recognition broad coverage essential accomplish goal outlawing interstate commerce goods produced conditions fall below standards decency. contains express implied exception conducted organizations, Department interpreted such businesses. And this interpretation supported legislative history. Pp. 295-299. 2. Act, they work contemplation compensation. Walling v. Portland Terminal Co., 330 148, 67 639, 91 L.Ed. 809, distinguished. fact themselves protest dispositive, since one reality." compensation primarily form benefits rather than immaterial context, simply being wages another form. 299-303. 3. Application does infringe on rights Religion Clause require exemption governmental program unless, at minimum, inclusion actually burdens claimant's freedom exercise rights. Here, payment received exchange working businesses, works little change associates' situation; may continue be paid But even if beliefs precluded accepting statutory amount, there nothing prevent voluntarily returning amounts requirements apply only undertaken "business would have impact own evangelical individuals engaged volunteer organizations. 303-306. 722 F.2d 397 (CA8 1983), affirmed. Roy R. Gean, Jr., Fort Smith, Ark., petitioners. Charles Fried, Cambridge, Mass., respondent. Justice WHITE delivered opinion Court. 1 threshold question case whether 52 Stat. 1060, amended, 201 seq., foundation, regardless those consider "employees." A secondary context violates 2 * Tony Susan Alamo incorporated laws California. Among primary purposes, stated Articles Incorporation, "establish, conduct maintain Evangelistic Church; services, minister sick needy, care fatherless rescue fallen, generally do things needful promotion Christian faith, virtue, charity."1 solicit contributions public. It number include service stations, retail clothing grocery outlets, hog farms, roofing electrical construction companies, company, motel, companies production distribution candy.2 been supervised petitioners Alamo, president secretary-treasurer Foundation, respectively.3 conversion 3 In 1977, Alamos, Larry La Roche, who then vice president, §§ 206(b), 207(a), 211(c), 215(a)(2), (a)(5), respect approximately 300 associates.4 United States Western Arkansas purpose." 567 F.Supp. 556 (1983). found despite incorporation organization, "engaged businesses." Id., 573. 4 further ruled worked these Alamos had testified trial vigorously protested wages, asserting considered volunteers reasons. Nevertheless, "entirely dependent upon long periods." Although did expect found, provide "food, transportation medical benefits." 562. form, employment, see Goldberg Whitaker House Cooperative, Inc., 366 28, 33, 81 933, 936, 6 100 (1961),5 employees. also Amendment, evidence unconstitutional discrimination bringing suit.6 5 Eighth Circuit Court's holding liability, vacated remanded appropriate remedy. (1984).7 emphasized operated public, entrepreneurs. Under test, held, "it difficult conclude extensive enterprise controlled foundation liturgy good news pagan world. By entering economic arena trafficking marketplace, subjected itself Congress prescribed benefit laborers." 400. 7 Like Court, constitutional claims. We granted certiorari, 469 915, 290, 83 226 (1984), now affirm. II 8 order subject two must satisfied. First, "[e]nterprise commerce." 203(s).8 Second, While definition exceedingly broad, Rosenwasser, 323 360, 362-363, 65 295, 296, 89 301 (1945), it limits. An individual who, "without promise expectation compensation, solely his personal purpose pleasure, carried either pleasure profit," outside sweep 152, 641, 809 (1947).9 9 Petitioners contend "a purpose."10 support assertion, point Internal Revenue Service certified tax-exempt 26 501(c)(3), exempts "any organized exclusively religious, charitable, scientific, testing safety, literary, educational purposes."11 10 "liberally furthest reaches consistent congressional direction," Mitchell Lublin, McGaughy & Associates, 358 207, 211, 79 260, 264, 243 (1959), recognizing Powell Cartridge 339 497, 516, 70 755, 765, 94 1017 (1950).12 statute organizations,13 agency charged enforcement Department's regulation defining entitled considerable weight construing explicitly states: 11 "Activities eleemosynary, [sic ] purpose. Thus, where organizations engage activities, operating printing publishing plant, will treated same when enterprise." CFR 779.214 (1984). 12 See Marshall Woods Hole Oceanographic Institution, 458 709 (Mass.1978); Elks Club Huntington, 444 957, 967-968 (SD W.Va.1977). Cf. Pilgrim Holiness Church Corp., 210 879 (CA7), cert. denied, 347 1013, 74 867, 98 1136 (1954). 13 history supports administrative judicial gloss. When broadened 1961 cover "enterprises" well individuals, Senate Committee Report indicated groups excluded insofar purpose."14 Some illumination intent provided debate proposed floor amendment specifically "employer," 203(d), qualifying tax 501(c)(3).15 manager bill opposed might "g[o] language [Committee] report" excluding "profit-making corporation company" owned "an eleemosynary institution."16 proponent failed countered church side."17 There thus consensus should exempted happened organizations.18 14 various operate differ "ordinary" infused needs associates, contend, both providing shelter. addition, argue, function "churches disguise"—vehicles preaching spreading gospel Brief 27-28. characterization however, factual resolved courts below, therefore barred review "absent exceptional circumstances."19 lower clearly took account aspects endeavors, correct scrutinizing issue reference objectively ascertainable facts concerning nature scope. Both F.2d, 400; F.Supp., 573, substandard undoubtedly give similar advantage over competitors. exactly kind "unfair method competition" intended prevent, 202(a)(3), admixture motivations alter business's effect commerce. B 15 That not, we noted, end inquiry. covered nevertheless "employee." (1947), trained railroad yard brakemen—individuals unquestionably Act"20—were trainees enrolled course lasting seven eight days, during time some actual close supervision. If, after completion training period, obtained permanent railroad, retroactive allowance four dollars each day course. Otherwise, neither expected remuneration. 150, S.Ct., 640. that, comprehensive definitions,21 "obviously stamp all employees without agreement, premises another." much position students school. Considering trainees' "contemplate compensation," findings railroads " 'no immediate advantage' done trainees," 153, 641. 16 Relying affidavits testimony numerous like Terminal, labors. true "failed produce past present associate viewed anything 'volunteering' services Foundation." characterized typical "testified convincingly she her part ministry," material rewards. Ibid. "no ever thought totally vexing my soul." App. 79. 17 protestations, however sincere, cannot dispositive. reality," U.S., 936 situation here far cry Terminal. Whereas lasted week, periods, cases several years." circumstances, finding in-kind benefits—and services—is certainly erroneous.22 agreement "implied" "express," immaterial. are, stated, form.23 18 vehemently makes unusual,24 purposes applied decline protections. If carved out willing testify "voluntarily," employers able use superior bargaining power coerce make assertions, waive protections Barrentine Arkansas-Best Freight System, 450 728, 101 1437, 641 (1981); Brooklyn Savings Bank O'Neil, 324 697, 895, 1296 (1945). Such exceptions affect many more people directly likely exert downward pressure competing As observed Gemsco, Inc. Walling, 244, 252-254, 605, 611, 921 uphold Wage Hour Administrator's authority ban industrial homework embroideries industry, "if prohibition made, entire industry falls right homeworkers free destroys larger factory wage." 19 Nor reason fear assert, lead drive elderly church, suppers, help remodel home needy. 24-25. "ordinary activities" Ordinary volunteerism threatened statute.25 III 20 infringes Specifically, argue imposition wage violate freely religion26 excessive government entanglement affairs. Neither contentions merit. 21 virtually self-evident See, e.g., Lee, 455 252, 256-257, 102 1051, 1054-1055, 71 127 (1982); Thomas Review Board, Indiana Employment Security Div., 707, 717-718, 1425, 1431-1432, 624 (1981). claim receipt "wages" convictions associates.27 wages. Section 203(m) "wage" reasonable cost furnishing [an] employee board, lodging, facilities." n. supra. Since currently situation: objection appear receiving specified amount Indeed, assert standard living exceeds minimum.28 Even pay cash, so voluntarily.29 fail perceive how interfere beliefs. supra, 257, 1055. 22 "primary effect" inhibiting activity foster 'an religion,' thereby violating Clause. Lemon Kurtzman, 403 602, 612-613, 2105, 2111, 745 (1971) (quoting Walz Tax Comm'n, 664, 674, 90 1409, 1414, 25 697 (1970)).30 merely requires employer keep records "of employed him hours, practices maintained him." 211(c). Employers preserve "make reports therefrom Administrator he shall prescribe." routine inquiries required 211(c) bear resemblance surveillance previously pose intolerable risk religion.31 exempt secular fire inspections building zoning regulations, Lemon, 614, 2112, while perhaps burdensome terms paperwork, significantly intrusive into affairs.32 IV 23 "common character, full protection. Furthermore, fully judgment accordingly 24 Affirmed. operates California, 30 Arkansas, Tennessee, motel Tempe, Arizona. 556, 559-561 (WD Ark.1983). receives donations associates. named defendant died suit filed. failing overtime certain "outside" made regarding claims, upheld Appeals. parties sought portion judgment. Silk, 331 704, 713, 1463, 1468, 1757 (1947); Rutherford Food Corp. McComb, 722, 729, 1473, 1476, 1772 (1947). enjoined comply ordered former others advised eligibility submit Secretary. back due claimant, "less applicable benefits" 577. appealed remedial portions order. 6, calculated instead requiring initiate backpay proceedings. 404-405. On remand, unpublished order, identified specific Following grant writ "administratively terminate[d]" pending decision. Respondent 12, 8. pursuant "individual" coverage. Prior introduction 1961, Enterprise substantially scope commerce, defined proceed basis omitted second step inquiry, although mentioned passing 399. sufficiently clear, remand unnecessary. 203(r) pertinent (either through unified control) purpose, includes establishments corporate organizational units including departments establishment leasing arrangements, independent contractor." dispute "through control." quarrel annual gross volume sales $250,000, 203(s)(1). 561. apparently determined "unrelated business" taxation 511-513. 14; Tr. Oral Arg. 30. (1961); 517, 766 (exemptions "narrow specific," implying "employees remain Act"). Report, discussing purpose" requirement, "[T]he profit. key word conclusion 'business.' Activities type referred to, profit, 'business' S.Rep. 1744, 86th Cong., 2d Sess., 28 (1960). 106 Cong.Rec. 16704 (remarks Sen. Kennedy). 16703 Goldwater). following year, expansion again enacted, Senator Curtis Goldwater unsuccessfully introduced. once rejected. McNamara, Chairman Education Committee, ground remove protection "activities compete private degree very adverse industry. [W]hen comes marketplace say charitable work." 107 6255 (1961). H.R.Rep. 75, 87th 1st 145, 41 Because "significant risk" infringement Amendment rights, infra, 303-306, clearer expression regulate activities. NLRB Catholic Bishop Chicago, 440 490, 500, 99 1313, 1318, 59 533 (1979). Branti Finkel, 445 507, 512, 1287, 1291, 63 574 (1980). decided advent "enterprise coverage," 8, remark premised brakemen "employ" "to suffer permit work" "employee" (with relevant here) employer." 203(g), (e). 1475; Black stating given broadest included act," 7657 (1935)). Former called witnesses "fined" heavily poor job performance, "commission" basis, prohibited obtaining food cafeteria absent work—even absence illness inclement weather. 148-149, 146, 218-219. sometimes hours per day, days week. contradicted witnesses, current testimony, somewhat ambiguous. Ann Elmore, example, "vexing [her] paragraph, answer benefits, just matter course, went them." 78-79. customarily furnished recognized, credit 563, 577; 203(m). Van Schaick Scientology, 535 1125 (Mass.1982); Turner Unification Church, 473 367 (RI 1978), aff'd, 602 (CA1 1979) (FLSA claims brought members). Solicitor General states determining truly volunteered considers variety facts, performed, less full-time occupation, typically associated work. recognized comfort sick, elderly, indigent, infirm, handicapped, retarded disadvantaged youth. 4-5, Roche vice-president standing raise members NAACP Alabama ex rel. Patterson, 357 449, 458-459, 78 1163, 1169-1170, 1488 (1958). cf. Donovan Shenandoah Baptist 573 320, 325-326 Va.1983). 27 deemed representative Court: "And soul. defeat whole (testimony Elmore). "I believe offensive me forced take wage. I offends worship God choose." 62-63 Bill Levy). burden rests misreading 211 imposes employer, 62, Levy Edward Mick); 33. value associates—a heated below—was average $200 month associate. 566-570. Counsel oral argument return 46. argued undermined Secretary's "compelling interest" applying indicative slight state criteria used purpose; advances nor inhibits religion; fosters religion. 2111. No contends purposes. 31 Meek Pittenger, 421 349, 95 1753, 44 217 (1975); (1971). 32 denies equal treatment different Government's workers, ACTION program. respondent aptly characterizes "frivolous." federal Government, unlike alleged volunteering entities. Government programs "limited otherwise supplant hiring result displacement workers." 42 5044(a). could rationally concluded prevention unfair employers. scrutinize classification stricter standard. acting hostility 574.

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