Alaska Employment Law

Family Centered Services of Alaska operates “therapeutic youth homes” in Fairbanks for children with various problems.  Two former live-in ”family parents” at the homes have sued in federal district court for overtime compensation.  The facility disputes the ex-employees’ reliance on FLSA “enterprise coverage” under 29 USC § 207(2)(A).

That section provides FLSA coverage for “an institution primarily engaged in the care of . . . the mentally ill or defective who reside on the premises of such institution . . ..”  The employees moved for summary judgment on coverage.

U. S. District Judge Ralph Judge Beistline noted that the issue was a matter of first impression in the Ninth Circuit and has arisen elsewhere infrequently.  The two District Court opinions that Beistline reviewed appeared to base § 207(2)(a) coverage on the “primary purpose” of the facility - was it to treat the children’s mental illness, or to provide residential care and treatment (with psychological treatment being a secondary purpose)?  On that distinction, Beistline found a genuine issue of material fact in the parties’ submissions.

Probert v. Family Centered Services of Alaska, Inc., 4:07-0030-RRB (D.Alaska Order of Sept. 12, 2008)

Kenneth Covell represents the ex-employees.  Foster Wallace of McConahy, Zimmerman  & Wallace represents the facility.  Both counsel are from Fairbanks.