Dive Brief:

• The Fair Labor Standards Act (FLSA), subject to certain exemptions, requires employers to pay minimum wage and overtime to employees -- but not volunteers.
• Volunteers are exempt from FLSA (and therefore AMWA) coverage and thus are not entitled to minimum wage and overtime for time spent as volunteers. However, the actions of a company can render the volunteer exemption inapplicable, writes Jodi R. Bohr, an attorney with Gallagher & Kennedy.
• The Arizona Minimum Wage Act (AMWA), which looks to the standards of the FLSA to determine whether an individual is an employee, requires employers to pay employees "no less than [the state] minimum wage" (currently $8.05 per hour),  according to an article at HR.BLR

Dive Insight:

Both fireman had been fired, one for failing to appear for shifts and engaging in inappropriate behavior, and the other for tardiness, insubordination, and inappropriate behavior. They had worked 2,400 and 3,000 hours respectively.

In their lawsuit, the pair alledged violations of the AMWA and the FLSA for the EFD failing to pay minimum wage and overtime. The fire district argued that the firefighters were volunteers and were not eligible for minimum wage and overtime (they were paid a flat fee). The court concluded that they were employees, not volunteers, of the EFD.

The court concluded that the two firefighters did not fall within the volunteer exemption because their service was for compensation, not for charitable or humanitarian reasons. They were paid in part on an hourly basis, tying compensation to productivity. Their pay was not nominal because instead of being based on relative volunteer sacrifice, it was based on productivity. Finally, they worked more hours than typical volunteers.

Bottom line: Employers navigating coverage and exemption issues under the FLSA and state regulations should consult with counsel to ensure the proper classification of employees, independent contractors and volunteers.