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RICHLAND COUNTY ASS'N FOR RETARDED CIT. v. MARSHALL

No. 78-2532.

660 F.2d 388 (1981)

RICHLAND COUNTY ASSOCIATION FOR RETARDED CITIZENS, a Montana Corporation, Plaintiff-Appellee, v. Ray MARSHALL, Secretary of Labor, United States Department of Labor; and Xavier M. Vela, Administrator of Wage and Hour Division, United States Department of Labor, Defendants-Appellants.

United States Court of Appeals, Ninth Circuit.

Decided October 9, 1981.

Attorney(s) appearing for the Case

Lois G. Williams, Dept. of Labor, Washington, D. C., argued for defendants-appellants; Donald S. Shire, Dept. of Labor, Washington, D. C., on brief.

W. William Leaphart, The Leaphart Law Firm, Helena, Mont., for plaintiff-appellee.

Before WRIGHT and ALARCON, Circuit Judges, and FRYE, District Judge.

ALARCON, Circuit Judge:

Richland County Association for Retarded Citizens (Richland) brought suit against the Secretary of Labor in district court in Montana, seeking a declaratory judgment that employees of the Sidney Group Home, operated by Richland, were exempt from the provisions of the Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq. The Secretary counterclaimed to enjoin Richland from violating the FLSA. The district court, relying on

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