Opinion ID: 2678967
Heading Depth: 3
Heading Rank: 2

Heading: The Relevant Statutes and Regulations

Text: In explaining how we reach that conclusion, it is useful to begin with the relevant statutory and regulatory texts. In enacting the FLSA in 1938, Congress required the payment of minimum and overtime wages to persons satisfying the statutory definition of ‚employee.‛ See 29 U.S.C. §§ 203(e), 206(a), 207(a). While the term ‚employee‛ has been construed to reach expansively, see Dejesus v. HF Mgmt. Servs., LLC, 726 F.3d 85, 91 (2d Cir. 2013), cert. denied, 134 S. Ct. 918 (2014), the Supreme Court, in Walling v. Portland Terminal Co., 330 U.S. 148, 152 (1947), concluded that it does not reach individuals ‚who, without promise or expectation of compensation, but solely for . . . personal purpose or pleasure, worked in activities carried on by other persons either for their pleasure or profit.‛ We need not, however, here decide how this ruling pertains to ‚volunteers,‛ because, in 1985, Congress 11 specifically codified an FLSA exception for individuals who volunteer their services to public agencies—such as DOE—subject to two conditions: The term ‚employee‛ does not include any individual who volunteers to perform services for a public agency which is a State, a political subdivision of a State, or an interstate governmental agency, if-- (i) the individual receives no compensation or is paid expenses, reasonable benefits, or a nominal fee to perform services for which the individual volunteered; and (ii) such services are not the same type of services which the individual is employed to perform for such public agency. 29 U.S.C. § 203(e)(4)(A).3 The FLSA does not itself define the term ‚volunteer‛ for purposes of this statutory exception. Rather, the Department of Labor (‚DOL‛), the agency charged with administering the statute, has done so through regulations.4 These 3Because our decision here is based on a statutory exception to the FLSA for public agency volunteers, we express no view on FLSA issues that may be presented to this court in other cases respecting purported private sector volunteers. 4Congress specifically directed DOL to promulgate regulations to implement the statutory volunteer exception. See S. Rep. No. 99-159, at 14 (1985), reprinted in 1985 U.S.C.C.A.N. 651, 652 (‚A new paragraph . . . is added to the FLSA to make clear that persons performing volunteer services for state and local governments should not be regarded as ‘employees’ under the statute. . . . The DOL is directed to issue regulations providing further guidance in this area.‛). Thus, the parties do not—and cannot—dispute that the regulations discussed in text are entitled to Chevron deference. See generally United States v. Mead Corp., 533 U.S. 218, 227 (2001) (‚When Congress has ‘explicitly left a gap for an agency to 12 regulations establish that to qualify as a ‚volunteer,‛ a person performing services for a public agency must: (1) have a civic, charitable, or humanitarian purpose, (2) have not been promised or expect or receive compensation for the services rendered, (3) perform such work freely and without pressure or coercion, direct or implied, from the employer, and (4) not be otherwise employed by the same public agency to perform the same type of services as those for which the individual proposes to volunteer. See 29 C.F.R. § 553.101(a), (c), (d).5 fill, there is an express delegation of authority to the agency to elucidate a specific provision of the statute by regulation,’ and any ensuing regulation is binding in the courts unless procedurally defective, arbitrary or capricious in substance, or manifestly contrary to the statute.‛ (quoting Chevron, U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 843–44 (1984) (internal citation omitted))). 5 Specifically, § 553.101(a) states: ‚An individual who performs hours of service for a public agency for civic, charitable, or humanitarian reasons, without promise, expectation or receipt of compensation for services rendered, is considered to be a volunteer during such hours.‛ Section 553.101(c) further states: ‚Individuals shall be considered volunteers only where their services are offered freely and without pressure or coercion, direct or implied, from an employer.‛ Finally, § 553.101(d) states: ‚An individual shall not be considered a volunteer if the individual is otherwise employed by the same public agency to perform the same type of services as those for which the individual proposes to volunteer.‛ 13 To clarify the definition further, an additional regulation explains that ‚v+olunteers may be paid expenses, reasonable benefits, a nominal fee, or any combination thereof, for their service without losing their status as volunteers.‛ Id. § 553.106(a); see id. § 553.106(f) (stating that whether furnishing of expenses, benefits, or fees would result in loss of volunteer status under FLSA can only be determined by examining ‚total amount of payments made (expenses, benefits, fees) in the context of the economic realities of the particular situation‛). ‚A nominal fee is not a substitute for compensation and must not be tied to productivity.‛ Id. § 553.106(e); see id. (identifying following factors as relevant to determining if fee is nominal: ‚t+he distance traveled and the time and effort expended by the volunteer; whether the volunteer has agreed to be available around-the-clock or only during certain specified time periods; and whether the volunteer provides services as needed or throughout the year‛). Nevertheless, individuals who volunteer ‚to provide periodic services on a year-round basis may receive a nominal monthly or annual stipend or fee without losing volunteer status.‛ Id. Moreover, individuals will ‚not lose their volunteer status because they are reimbursed for the approximate out-of-pocket expenses 14 incurred incidental to providing volunteer services, for example, payment for the cost of meals and transportation expenses.‛ Id. § 553.106(b). DOL regulations also state that the FLSA places ‚no limitations or restrictions . . . on the types of services which private individuals may volunteer to perform for public agencies.‛ Id. § 553.104(a); see id. § 553.104(b) (citing as examples of volunteer service ‚assisting in a school library or cafeteria,‛ working with ‚disadvantaged youth,‛ and participating in ‚charitable or educational programs‛).