This is something my wife had mentioned to me a long time ago and I didn't really pay much attention, so I brought it up again last night at dinner. She says it would be pretty much a no brainer for her to take the case if a volunteer ever came to her office. FLSA violations require the losing party to pay the attorney fees so she said she'd happy take them for nothing. She figures that Competitor is relying on the fact that 99.9% of volunteers are unlikely to seek out an employment attorney, since they would be entitled to very little compensation. In terms of the guy who said that a company that makes millions has plenty of lawyers, she makes her living suing companies that make millions and screw up. It happens every single day.
I asked her about the notion of paying charities a nominal amount and having the volunteers work for the charity. She said that it was a pretty good ruse, but that the court would see through it unless they were very, very careful. As a for instance, she said that if they recruited volunteers through their website and directed them from there to the charity that it would probably fail. She said that many companies attempt to circumvent the FLSA by classifying volunteer positions as "interns" but that courts subject these arrangements to detailed scrutiny and that most of the programs she has looked at are flawed. I asked her how many "volunteer" FLSA cases she has taken and she said about 50. I asked how many she failed to recover anything and she said "none". She said that they usually settle, because if the other side loses they have to pay a lot more in attorney fees if it goes to trial.
She said that going after "volunteer" and "intern" programs is a pretty hot issue in her field right now and that plaintiffs are mostly killing it in those cases. For what its worth, she is quite experienced in this area and teaches CLE courses to other attorneys in employment law.