9th Circ. Denies OT Pay To Guardians Of Troubled Kids

Law360, New York (June 24, 2011, 3:24 PM EDT) -- Two house parents at an Alaska nonprofit must do more than manage residences for mentally troubled children to win the protections of federal wage-and-hour laws, the Ninth Circuit ruled Thursday, marking the first appellate decision on the issue.

A three-judge panel found that therapeutic homes run by Family Centered Services of Alaska were not "institutions” primarily engaged in the care of mentally ill residents, and therefore were not subject to the Fair Labor Standards Act.

“Obviously, for children a home should be more than simply a...
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