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-- thank you.
A self made entrepreneur -- is stepping into the ring with the US Department of Labor as her entire business model is in jeopardy.
Due to a 75 year old law something from 1938.
To joining me now is -- -- -- founder and president.
-- a lot of Ryanair with more on how an antiquated law may actually end up costing her or maybe even you do.
But at least her business thousands of dollars thank you for joining us I want to read something had a column in USA today recently.
The department -- labor is cracking down on you.
And you wrote in your column -- -- the fair labor standards act was written in 1938 nobody was imagining of collaborative social business like mine and I'm far from the only onto -- Norse stifled.
By outmoded dictates from the world I never leave dead.
What are they doing to you would this antiquated law.
Hi Adam thinks so much for having me today.
Well they're looking at we have a cooperative effort with our can signers who are mom volunteers.
And they are telling us that they need to be employees.
And our position is that moms need to be able to use their personal time to benefit their feelings that they are working.
For each rather that working for themselves again they're not are employees.
Revelation put -- you -- this -- go online to find but essentially it's selling.
Use children's clothing which everyone -- -- children's clothing is very expensive so.
You you create.
Kind of in my day it would have been going to the old drive in movie theater where they had to swap meet you create these kind of swap meet where people go and bargain -- -- consigned their stuff.
They do the trades you set up the umbrella for all of days you keep 30% the Seles gets 70%.
But you allow the volunteers who help you said set it up they get first -- they get to shop before everyone else and the Labor Department says that's illegal.
Well yes we we provide an avenue that does -- -- who shot early.
And they they get to volunteer they get to -- early in the value is making its first election.
And says they get the best -- -- and they get the best selection of merchandise and so they're great could there is incentive for them to volunteer at our -- And and when Arkansas Department of Labor on it instantly came out with a favorable ruling.
Then that the federal Department of Labor came in and basically overruled and we believed Ellie aren't compliance -- that the Supreme Court.
-- why did the Department of Labor step into this -- and he's a great analogy that if you take your kid to Build-A-Bear.
Essentially Build-A-Bear is violating this law because they're not paying your kid who's making the Teddy bear.
-- -- children go and of course -- -- Build-A-Bear at the children are dialing in to work for themselves and build the Teddy bear at the -- their workshops.
Just like the moms and families are -- tier -- -- to sell their children's.
Things and to work for themselves and just like Build-A-Bear is receiving a profit.
And we are receiving a profit.
I it is a similar analogy if we use that same dreadful -- Jake and we would have to say that those children are employees have -- a bear which of course they're not.
Doing that but when I interrupted you and I apologize that you mention the Supreme Court have there been rulings along this kind of business model of viewers before.
Well the Supreme Court just says that when you play the fair labor standards act that you need to look at the economic reality of the whole situation we don't check our common sense -- the -- And we use economic reality and -- the economic reality of our business.
Is that it is -- teasing their personal time to benefit their families they are working for themselves they are not are employees.
-- in 22 states now I love what you wrote in the column my business did -- become successful because of government assistance it became successful.
Because my customers like the way I do business this is an added jobs but -- from the government we're here to help run for your lives -- -- -- It really is it feels like it's very much of an elder regulation.
That hurts moms like me who want to use their personal time to benefit their families also -- -- -- -- That are trying to -- the innovative and creative.
We have a social business model and we just really feel like the Department of Labor doesn't have a great understanding of what we're doing.
Well we're Fox Business we'll keep an eye on this for you we wish you the best -- a lot of -- thank you very much for joining us.
Thank you --
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