Hot Dogs, Soda and T-Shirts.
Or, as the U.S. Court of Appeals for the Second Circuit recently put it, “food, beverages and merchandise.”
The Court recently held that Delaware North Companies Sportservice Inc. (“DNC”), which sells food, beverages and merchandise inside Oriole Park at Camden Yards, is covered by a Fair Labor Standards Act exemption for businesses engaged in amusement or recreational activities on a seasonal basis.
The company doesn’t directly provide amusement or recreation, but its primary purpose is selling goods and services to enhance spectators’ experience during Baltimore Orioles games.
Employees of DNC filed a lawsuit saying the company didn’t pay overtime when they worked more than 40 hours in a week.
The Court’s ruling means that exemption from overtime still applies if an amusement or recreation facility contracts out some of its operations. DNC qualifies for the amusement or recreation exemption because it operates under a concession agreement with a business that qualifies for the exemption.
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