Rhea Lana's Case Study

In May of 2013 Rhea Lana Riner was informed by the department of Labor that she was in violation of sections 6 and 7 of the Fair Labor Standards Act. (1) Mrs. Riner is the founder of Rhea Lana’s, a consignment company for moms with Young Children. Started n 1997 Rhea Lana’s has grown greatly since then, having transitioned to a franchise model in 2008. They currently have 80 locations in 24 states. The source of this controversy between Riner and the DOL comes from the fact that her volunteers are not paid. Rhea Lana’s could not exist were it for her volunteers. Each location around the country hosts two sales a year. At each sale these volunteers help set up and help customers. In exchange they are allowed to shop before the sale is open to the general public and are also allowed to give their consignment special attention. Not only this but 70% of each sale returns to the consigner. The DOL however seemed to not understand the concept of a mutually beneficial experience as they encouraged Rhea Lana’s volunteers to sue for wages, and after that failed sent letters to Mrs. Riner demanding that she pay her volunteers as employees. “Some-including apparently, the Labor Department- believe it is illegal for a private
(9) Robinson was hired on as an assistant speech writer for vice President George H. W. Bush and helped write Reagan’s tear down this wall speech. At one point in the show Robinson asks Friedman about Thalidomide, a drug designed to help women overcome nausea, which they experience during pregnancy. The drug was allowed in Europe but disallowed by the FDA in the U.S. As a result thousands of children were born with terrible disfigurements caused by the drug. Robinson asks Friedman, who was a very large critic of the FDA, if in this case should we thank God for the