Conway, Ark. – The U.S. Court of Appeals for the District of Columbia today ruled in favor of Rhea Lana Riner and her children’s clothing consignment business in her lawsuit against the U.S. Department of Labor. Cause of Action Institute (CoA Institute), a Washington D.C. based government watchdog group, represents Rhea Lana, Inc. The ruling overturns the district court’s dismissal of her complaint and allows the case to proceed.

“I am grateful that the Court of Appeals is allowing my case to go forward. The Labor Department’s crusade to classify volunteers as employees has put my business and livelihood in jeopardy. I look forward to presenting my case before the district court in the hopes of being able to run my business without the constant threat of civil penalties from the federal government,” said Riner.

Riner founded her clothing consignment company in her living room more than a decade ago. Since the company’s humble beginnings, Rhea Lana, Inc. has expanded as a franchise with 80 locations across 24 states. However, in 2013, the U.S. Department of Labor conducted an audit and sent Rhea Lana a letter claiming that her company was in violation of the Fair Labor Standards Act regarding minimum wages and overtime pay.  The government claimed that volunteers who help at the consignment events where their goods are on sale must be classified as “employees.”

Rhea Lana took the Department of Labor to court, but the complaint was dismissed for lack of a reviewable agency action.  On appeal, however, the Court of Appeals held that the government’s letter to Rhea Lana is subject to immediate judicial review.