6th Circuit clarifies FLSA test for educational programs

The U.S. 6th Circuit Court of Appeals (whose rulings apply to all Michigan employers) recently clarified how the Fair Labor Standards Act (FLSA) exemption for educational programs should be applied when some duties don’t fall within the educational purpose.

Facts

Cosmetology students at the Douglas J Institute were afforded “a true salon setting” in which to undergo their training, including the opportunity to provide supervised cosmetology services individually and in groups. They also were expected, however, to perform cleaning and janitorial activities, such as doing laundry, restocking shelves, and washing dishes.

The students, who spent up to four hours a day on the extraneous tasks, argued they should be paid for the time because the work itself was unrelated to their studies and specifically excluded from the Douglas J Institute curriculum and the state training requirements.

Court weighs in

The primary issue before the 6th Circuit was whether the cosmetology students were employees under the FLSA, which would entitle them to payment for the hours worked. The Act defines “employee” as “any individual employed by an employer,” and “employ” as to suffer or permit to work.

Courts use an economic reality test to decipher whether the relationship is one of employment, and there’s no presumption that students, even at vocational schools, are automatically excluded from an employee classification.