…with government regulations:
A big part of our success are the hundreds of parents — both consignors and shoppers — who voluntarily work brief shifts to help set up before the sale starts. In exchange, these parents get to shop first with more choices and better merchandise.
In January, though, the Department of Labor noticed all this cooperation going on. Months later, investigators concluded that volunteers are “employees” under the Fair Labor Standards Act.
This means paying the federal minimum wage of $7.25 per hour, filling out IRS paperwork and complying with who-knows-what other rules. And all for a pop-up business that lasts days.
Think about that for a second. I’ve offered regular parents the same opportunities that eBay gives independent resellers. When I do it in the real world to recycle used clothes, the Department of Labor says no way. That’s bunk. My volunteers are not employees or independent contractors. They’re customers.
By this dreadful logic, Build-a-Bear Workshop employs child labor when it lets its young customers assemble their own teddy bears.
Unfortunately, as my situation shows, too many new ideas are being held back by rules that are stuck in the past. When the Fair Labor Standards Act was written in 1938, nobody was imagining a collaborative, social business like mine. And I’m far from the only entrepreneur stifled by outmoded dictates from a world I never lived in.
You’re not allowed to freely cooperate or exchange without the permission of the State, citizen.
[Update a while later]
Tocqueville would have been saddened, but perhaps not surprised:
Tocqueville would not recognize America today. Indeed, so completely has associational life collapsed, and so enormously has the state grown, that he would be forced to conclude that, at some point between 1833 and 2013, France must have conquered the United States.
…[He] also foresaw exactly how this regulatory state would suffocate the spirit of free enterprise: “It rarely forces one to act, but it constantly opposes itself to one’s acting; it does not destroy, it prevents things from being born; it does not tyrannize, it hinders, compromises, enervates, extinguishes, dazes, and finally reduces [the] nation to being nothing more than a herd of timid and industrious animals of which the government is the shepherd.”
Except the government is not a shepherd — it is becoming the wolf, against which we need sheepdogs.