Neighbors and people across the nation were appalled when local shops in Ferguson, Missouri, burned down during the recent disturbances there. Thankfully, family, friends, and some kind-hearted strangers have pitched in to help local entrepreneurs rebuild their businesses. Unfortunately, some obscure, Great Depression-era federal and several state laws prohibit such acts of generosity, by making it illegal to help at a for-profit business.
The original source of these laws is the Fair Labor Standards Act (FLSA) of 1938, which introduced among other things the minimum wage and statutory overtime. It bans the use of volunteers by for-profit businesses making over $500,000 in annual gross sales or whose employees engage in interstate commerce—which can be something as simple as running a credit card that is part of a national network that counts as interstate commerce. Only immediate family members are allowed to volunteer.
Want to Help Someone Rebuild Her Business? Better Lawyer Up! | TheBlaze.com
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