The Department of Labor did not investigate America Online, so the group of volunteers took it to federal court, suing the company for back pay. Their attorney, Leon Greenberg, told The New York Times at the time: ”AOL is a for-profit business. What community leaders did was very essential to the service in terms of what they were selling to the public. The minimum-wage laws require people get paid a minimum wage. When AOL says, ‘These people were volunteers so we didn’t have to pay them,’ I don’t see it.”
That class-action lawsuit, Hallissey et al v. America Online, Inc., attracted approximately 2,000 community leader volunteers, said Greenberg. America Online’s defense was, as expected, that “volunteers” are not entitled to the same protections as “employees,” and they petitioned the court several times to have the case dismissed. The crux of the case was this definition, and it’s a complicated one.
There are many factors to take into consideration when deciding whether someone is considered an employee, an independent contractor, or a volunteer under the FLSA: factors like the permanence of the relationship between the worker and the employer, the amount and nature of control the employer has over what the worker does and how he or she does it, and who profits from the relationship, and how. What the employer would like to call its workers, and what the workers would like to call themselves, are irrelevant.
In one noteworthy ruling that eventually made its way to the Supreme Court in 1985, a company was ordered to pay minimum wage to its employers even though the employees didn’t want it. Tony and Susan Alamo Foundation v. Secretary of Labor was based on hundreds of members of a church volunteering regular hours in the organization’s many commercial side-businesses. The workers did not expect to receive any money for their work, and, in fact, “vigorously protested the payment of wages” at trial. Nevertheless, the court decided that, because the for-profit sides of the organization were in competition with other businesses, the use of 300 unpaid workers was not only unfair to the workers, but it also gave the Alamo Foundation an unfair advantage over its competitors.
In an interview this week, Greenberg, the attorney representing the volunteers in the AOL litigation, made parallels between that case and the Alamo Foundation case. He said he felt that in both situations, the workers should have been classified as employees, not volunteers, “because of the regimented nature of their activities.” In both cases, even though the workers were offering their time willingly, there was an employer-employee type relationship at play: workers had to complete a training program, had to work for a certain number of hours a week, had to report regularly to their superiors on what they had done, and, if they failed to meet the employers’ requirements, were kicked out of the program. Employees do not have the same control (control over what work they do and how they do it) as volunteers do, under the FLSA’s definitions.
But the AOL litigation, at least, was a tricky case nonetheless. The court denied AOL’s requests for dismissal, but it didn’t move to bring the case to trial, either. Hallissey et al. v. America Online sat in the court for years before AOL finally moved to settle the case in 2009. The payout was reportedly for $15 million, although Greenberg declined to comment on the terms of the settlement (settlement figure noted here, page twenty-five).
So. Could a similar case be brought against the AOL/Huffington Post behemoth, today, by the thousands of unpaid Huffington Post bloggers? It’s hard to say. Professor Ellen Dannin, who teaches labor law at Penn State, said that paid and unpaid writers generally fall under the definition of independent contractor with regard to the FLSA law. Freelance writers are not considered employees, nor are they volunteers, which typically refer to people working for nonprofits, charities or religious organizations.

For your and your readers' further edification, Lauren, you might read Jason Linkins piece here How The Huffington Post Works (In Case You Were Wondering) where he explains clearly and patiently the difference between what he, a paid HuffPo journo does compared to HuffPo bloggers, and he also addresses the paid use of aggregated content. It always helps to start with the actual facts, and then make your argument. Your piece wasn't bad, but your headline and the fact that you are comparing the AOL case with HuffPost tells me that you are a mite uninformed here. Either that, you you are committed to the anti-Arianna zombie lies that are being spun out by the MSM.
Please read and let me know what you think.
Cheers.
#1 Posted by James, CJR on Fri 11 Feb 2011 at 08:51 AM
Thanks for reading, James. Yes, I saw Linkins' piece yesterday - there is, of course, a difference between HuffPost's dozens of paid staff reporters/writers/editors and their thousands of unpaid non-staff bloggers (just as there is a difference between AOL's paid computer programmers and designers and unpaid volunteers). I don't think anyone's saying that their paid writers should be paid more - at issue are the thousands who aren't paid at all. In this piece, I'm only comparing the latter -- the HuffPost bloggers and the AOL volunteers. You'll see that by the end of my little thought experiment I conclude that the comparison is not, in fact, a direct one, and that's the point.
#2 Posted by Lauren Kirchner, CJR on Fri 11 Feb 2011 at 10:13 AM
Yeah, I did note that you concluded that the cases weren't really comparable, nor was it comparable to the Alamo case. As I said, the piece wasn't bad; actually, it was pretty good on second reading. My objection really goes to the framing, evidenced by your subhed, and your presenting the argument of Rutten way up high, which is completely off the mark and fact-free. I thought it rather biased that you didn't present the actual facts as represented by Linkins and others that go to the reality, along with the distortions peddled by Rutten and seemingly the entire MSM. Perhaps I'm just taking objecting to a stylistic issue. Anyway, thanks for responding. Much appreciated.
#3 Posted by James, CJR on Fri 11 Feb 2011 at 11:58 AM
IF it was proven that the HuffPo gets more readership, thus creating more public presence, ultimately resulting in the deal with AOL, due primarily to its free blogging community then conceivably that is an unfair advantage/competitive edge over newspapers who pay their writers. Those newspapers might have to join the unpaid bloggers in filing a lawsuit. Alas, however, many of the newspapers also have unpaid bloggers. A brilliant legal mind might be able to distinguish these facts and the bloggers could have their day in court.
#4 Posted by KathyV, CJR on Fri 11 Feb 2011 at 06:57 PM
Jaron Lanier voiced the regrets of the Internet generation in his recent book, "You are not a gadget," in which he lamented the "information wants to be free" meme, which has turned into "You can work for us for free." I wrote about this in the blog post at http://www.lubetkin.net/2010/01/12/open-inversions-getting-paid-%E2%80%93-and-doing-online-things-right/.
George Lucas told Kara Swisher in response to a question about YouTube that he was amazed at how many people were willing to work for free. We have a filmmaker who just got thousands of people to submit Day in the Life videos so that he can get his name in the IMDB and go to Sundance and everywhere else on the talkshow circuit to tell how great social media and crowdsourcing is for making a movie. So far as I can tell, no one is being compensated for their contribution, but he's sure living large on the buzz.
Now, Ariana Huffington collects a $315 million payday on the backs of people who contributed free content, and everyone is shocked, shocked, that she's not sharing it?
Come on.
They got what they deserved when they agreed to this business model. Someone asked me a while back if I was interested in bartering for podcast production.
My response was, "Sure, I will barter podcasts for cash."
It's really simple. Don't work for people who don't pay you.
Steve "@PodcastSteve" Lubetkin
Managing Partner, Professional Podcasts LLC
http://www.professionalpodcasts.com/
@PodcastSteve on Twitter
steve@professionalpodcasts.com
#5 Posted by Steve "@PodcastSteve" Lubetkin, CJR on Fri 11 Feb 2011 at 08:50 PM
I was a community leader for AOL for three years in the 1990s. How do I get my share from that class action lawsuit?
#6 Posted by Tom, CJR on Tue 12 Apr 2011 at 05:54 PM