July 25, 2009
US Department of Labor Issues Opinion Letter on Concessionaires
Filed under: News
Vision Payroll

The US Department of Labor (DOL) recently issued Administrator signed Opinion Letter FLSA 2009-11. Although Opinion Letters only apply to the exact set of facts and circumstances presented in each case, they are a valuable aid in understanding current interpretations of the Fair Labor Standards Act (FLSA).

In this Opinion Letter, the DOL concluded that a concessionaire at a privately-owned recreational establishment did not qualify as a recreational establishment. A recreational establishment is an “establishment that is an amusement or recreational establishment, organized camp, or religious or  non-profit educational conference center that either ‘does not operate for more than seven months in any calendar year,’ or, ‘during the preceding calendar year,’ has ‘average receipts for any six months of such year [of] not more than 33 1/3 per centum of its average receipts for the other six months of such year.’” Although a restaurant may qualify as a recreational establishment if the host establishment qualifies and the acts with the concessionaire as a single establishment, in this case the entities were separate and distinct.

State laws may provide rules that are more beneficial to the employee and must be followed. Contact Vision Payroll if you have questions about this Opinion Letter.


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